Recap 2-10-14


IMHO, the quick moves in equity markets despite the quiet news flow are reflective of both positioning and the path of least resistance. I noted in January that the overall backdrop was likely to limit both the duration as well as size of equity corrections. In retrospect, I think this was not wrong, and furthermore is likely to persist over the next few months.


  • Yellen Testimony was short and to the point. There were no significant surprises.
  • Australia NAB Business Confidence improved to 8 vs 6 prev
  • France to miss deficit goal – the country’s state auditor warned Tues that the country risks missing its deficit reduction targets – Reuters

Upcoming Data:

  • Tue: Japan Money Supply,
  • Wed: Australia Inflation Exp, Employment, UK RICS House Price Balance
  • Thu: US Retail Sales, Jobless Claims,
  • Fri: EU GDP, UMichigan Confidence