The Daily Shot Brief – August 20th, 2020


United States: The US dollar bounced from the lows after the Fed minutes were released. Some have suggested that the market response was due to the Fed’s rejection of yield-curve control as a policy tool. It is used by several central banks, notably the BoJ.

Source: The Daily Shot

Here is how stock futures reacted to a stronger dollar.

Source: The Daily Shot

The dollar weakness has provided support for US stocks this year, and investors a jittery about this trend reversing.

Source: BofA Merrill Lynch Global Research, @WallStJesus


Credit: The corporate investment-grade (IG) bond market looks increasingly risky. The concentration of BBB names keeps climbing.

Source: @LPCLoans, @refinitiv

This chart shows this year’s US corporate bond yield changes, by rating.

Source: @WSJ Read full article


Energy: The recovery in US refined product demand has paused.

Source: Princeton Energy Advisors


Emerging Markets: Cyclically sensitive EM currencies have underperformed despite broad dollar weakness.

Source: Barclays Research


United States:  Home purchase mortgage activity is holding at multi-year highs.

Source: The Daily Shot


Food For Thought: Voting by mail:

Source: @WSJ Read full article

Edited by Daniel Moskovits

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