A fresh increase in the Atlanta Fed’s GDPNow model reinforces the reasoning behind hawkish-for-longer monetary policy, which is weighing on equities and bonds
The latest model estimate shows real 3Q GDP growth of 5.9%, up from 5.8% on Aug. 16 (it was less than 4% two weeks ago). Source: J-C Gand, Atlanta Fed
Lira Rallies as Turkey stuns with biggest rate hike in years
The central bank raises benchmark rate by 750 basis points. Turkish currency surges more than 5% against the dollar. The Monetary Policy Committee, under Governor Hafize Gaye Erkan, raised the benchmark one-week repo rate to 25% from 17.5%, the sharpest increase since 2018. Most economists polled by Bloomberg predicted a hike to 20%. It’s the latest indication that Turkey’s new administration is prepared to move away from the unorthodox policies — including ultra-loose borrowing costs — that were championed by President Recep Tayyip Erdogan but caused foreign traders to flee the country’s bond and stock markets en masse. Source: Bloomberg
EU Composite PMI... monetary policy works with a long and variable lag...
Source: Macrobond, Nordea
Since the COVID Crash lows in March 2020, US equity markets have more than doubled the performance of bonds
As shown below, that's the best performance ever over a similar time window, topping the strongest stocks-bonds outperformance from the tech bubble of the late 1990s and early 2000s. Source: Bespoke, J-C Gand
Merck trying to breakout ?
Merck (MRK US) is testing resistance. Will it be able to breakout triangle pattern ? Source : Bloomberg
McDonald on major support
McDonald (MCD US) is testing for the second time the April breakout level. Keep an eye on this zone 279-282. Source : Bloomberg
If Nvidia continues like this, the chip company will soon be as big as all 40 Dax comps combined
Source: Bloomberg, HolgerZ
The secret wallet that bought $3,000,000,000 worth of Bitcoin in the last 3 months belongs to Robinhood
While the market panicked, they bought. Source: Crypto Rover
