Alchemy of confidence: according to John Authers the markets read the copper/gold ratio as a measure of confidence. Presumably copper is real economy v gold = safe haven … this week, for 1st time since Nov 2016, gold has outperformed copper (link: https://www.bloomberg.com/opinion/articles/2019-08-06/good-will-is-a-thing-of-the-past-in-the-trade-war-jyzaqk0v?srnd=premium) bloomberg.com/opinion/articl…
The USD/CNY risk’o’meter
Between 6.96 and 7.30 = risk off
>7.30 = full panic
This inversion is getting serious. I don’t envy the Fed’s choice right now: Live with an inverted yield curve or defend rate cuts with inflation near 2% and unemployment at historic low.
Global coordinated easing… Fed: easing. ECB: easing. BOE: easing. BOJ: easing. Australia: easing. New Zealand: easing. Brazil: easing. Russia: easing. India: easing. China: easing. Hong Kong: easing. Korea: easing. Indonesia: easing. South Africa: easing. Turkey: easing.
