Short comment
US GDP growth during 1Q19 was announced. The number is 3.2% which is much higher than expected 2.5%. It could be a piece of evidence which show concerns of economists were too much. Equities gladly received the number with S&P500 going up by 0.47%.
The wierd thing is US Treasuries went up too. Yield of 10year US T-Note went down by 0.0343%. Low inflation and Federal Reserve's worry for the inflation are proceeding, and it is giving upside potential to the bond market. Another point in the bond market is that yield flattening is being alleviated. The main yield spread between 2year and 10year US T-Notes went beyond 20bp. It could mean that strong movement in US stock market has sure upside potential too.
Strong US economy is acting as supporter for USD too. EURUSD touched 1.11 level. Unlike the US, the momentum of European economy does not look healthy. Following BoJ which pronounced dovish stance again a few days ago, ECB which will get a new president soon could pronounce additional dovish policies. Players in Europe are worrying the Japanization of Europe.
US GDP growth during 1Q19 was announced. The number is 3.2% which is much higher than expected 2.5%. It could be a piece of evidence which show concerns of economists were too much. Equities gladly received the number with S&P500 going up by 0.47%.
The wierd thing is US Treasuries went up too. Yield of 10year US T-Note went down by 0.0343%. Low inflation and Federal Reserve's worry for the inflation are proceeding, and it is giving upside potential to the bond market. Another point in the bond market is that yield flattening is being alleviated. The main yield spread between 2year and 10year US T-Notes went beyond 20bp. It could mean that strong movement in US stock market has sure upside potential too.
Strong US economy is acting as supporter for USD too. EURUSD touched 1.11 level. Unlike the US, the momentum of European economy does not look healthy. Following BoJ which pronounced dovish stance again a few days ago, ECB which will get a new president soon could pronounce additional dovish policies. Players in Europe are worrying the Japanization of Europe.
Anyway, Everything is supporting the stock market. S&P500 will touch 3,000 in May. I start to think that 3,300 of S&P500 is being realized as the number of the end of the year.
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