U.S. equities closed on a muted note last week, all things considered. With further improvement in the labor market one would have thought interest rates and the U.S. dollar would see a bump.
But as the rate of change of improvement in the economy (including the jobs growth picture) continues to slow, it adds skepticism of a rate hike in September or even in December for that matter. Therefore, Friday’s drop in longer-term interest rates and flattening of the yield curve, coupled with a stalling U.S. dollar and choppy equity markets, makes more sense.
As this is my first missive filling in for Sam Collins for this week, I’ll keep it bigger picture to get good perspective before looking at closer-up charts later this week.
Read my full analysis HERE