“I would really urge that on this occasion it may be a less good signal,” – Janet Yellen US and Global markets fall even deeper with an hour left in […]
“I would really urge that on this occasion it may be a less good signal,” – Janet Yellen
US and Global markets fall even deeper with an hour left in the trading day.
The United States 10 year treasury bond yield has officially inverted the 2 year, this indicator has occurred before many market recessions and currently has the market on edge. However former Chair of the Federal Reserve has stated “Historically, it has been a pretty good signal of recession, and it think that’s when markets pay attention to it, but I would really urge that on this occasion it may be a less good signal,” Yellen states on Fox Business Network. “The reason for that is there are a number of factors other than market expectations about the future path of interest rates that are pushing down long-term yields.”
It’s also important to note just because something has happened in the past does not mean it’s inclined to happen again in the future. The yield on the benchmark 10-year treasury note was at 1.583% on Wednesday, below the 2-year yield at 1.591%, causing the bond market’s main yield curve to invert and send markets crashing.
President Trump announced on Tuesday morning that he would hold off on implementation of tariffs on China, the market responded by a collapse in the VIX and a rise in equities across the board. The USTR’s stated that “certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.”
The markets largely taken back gains given this Tuesday. The market reflects as following:
Notable Large losses:
$DMPI (DelMar Pharmaceuticals, Inc.) -42% Loss
$MTC (Mmtec, Inc.) -41% Loss
$MYGN (Myriad Genetics, Inc.) -40% Loss
$CHRA (Charah Solutions, Inc,) -38% Loss
$DNJR (Golden Bull Limited) -33% Loss
$REED (Reed’s Inc.) -28% Loss
Quotes as of Aug 14th, 2019 at 12:23PM PST courtesy of Yahoo Finance.
Currently the Dow 30 is down -750 points or -2.84%
The S&P 500 is down -82 points or -2.78%
The NASDAQ down over -240 points or -2.93%
SmallCap 2000 futures are down -45.80 points or -3.03%
S&P 500 VIX has spiked very hard with a +4.69 point gain or +26.83% gain marking immense fear and uncertainty amongst investors
The China A50 futures have fallen -1.15%
The Hang Seng futures closed indicating a loss of 1.50%. China H-Shares closed up +0.05%
Europe futures on the Euro Stoxx 40 are down 90 points or -2.68%
The Japanese Nikkei 225 and TOPIX are both very red.
Nikkei 225 futures down -427 points -2.07% and the TOPIX futures down -45 points or -3.00%.
CAC 40 futures are down -128.5 points or -2.40%
FTSE 100 Futures are down -140 points or -1.94%
DAX futures are down -334.5 points or -2.84%
FTSE MIB is down -563 points or -2.75%
WIG20 futures down -58 points or -2.76%
S&P/ASX 200 futures are down -116 points or -1.15%
Brazils IBovespa futures are down -3510 points or -3.36%
RTS Futures are down -4205 points -3.09%
SMI futures are down -229.5 or -2.34%
Disclaimer: Quotes are delayed and never should be taken as financial advice.
5+ years in the financial markets as trader and investor! I currently work full time and pursue my financial endeavors in my own time. I love writing and staying informed so this blog is my way of doing just that. To clarify I'm not a financial advisor and everything I say is my opinion and never should be taken as financial advice. Thanks!