Markets News Regulators Stocks 

Stock market’s new ‘wall Of worry’ is built on inflation and rate fears

“Higher inflation and subsequent higher borrowing costs can destabilize companies and households with high debt levels” reports foxbusiness.com. For now, we just added a new wall of worry to climb and that is inflation,” said Krosby.The wall of worry is a term used to describe the stock market’s tendency to overcome potentially negative factors as it climbs. Source: foxbusiness.com Share This:

Read More
Markets News Regulators 

Financial stress is spiking

“The Financial Stress Index is designed to show a level of zero for “normal” financial conditions” writes Wolf Street for businessinsider.com. Louis Fed Financial Stress index, released today, just spiked beautifully.This caused yields and risk premiums to spike, as shown by the Financial Stress index.When these conditions are easy and when there is less financial stress than normal, the index is negative.In other words, financial conditions remain extraordinarily easy. Source: businessinsider.com Share This:

Read More
Markets News Regulators Stocks 

The stock market’s new ‘wall of worry’ is built on inflation and rate fears

“Higher inflation and subsequent higher borrowing costs can destabilize companies and households with high debt levels” writes Anora M for marketwatch.com. Interestingly, fears of rising inflation and higher borrowing costs—whether rational or irrational—were blamed for triggering the stock market selloff in the first place.See: The stock market and the bond market have struck a truce “We are no longer in the Goldilocks environment, when bad news was good news. Source: marketwatch.com Share This:

Read More
Markets News Regulators 

The dollar is at its lowest point since 2014 — and nobody can pinpoint the reason

“The dominant factor in the decline of the dollar index is the strength of the euro, the second largest currency” writes Wolf Street for businessinsider.com. So for the Fed, which is chomping at the bit to raise rates further, the weak dollar is a welcome sight.Over those 14 months, the euro, which had been given up for dead not too long ago, has surged 20% against the dollar.At some point it would get nervous and chime in with the chorus emanating from the Treasury Department and the White House trying…

Read More
News Regulators 

‘THE FLOODGATES ARE OPEN’: The US government is set to begin an unprecedented borrowing binge

“Economists like Seth Carpenter, the chief US economist at UBS, expect fiscal stimulus to boost growth and inflation” writes Akin Oyedele for businessinsider.com. Beyond how the Fed manages higher growth, the Treasury’s response to fiscal stimulus poses its own risks. Source: businessinsider.com Share This:

Read More
Markets News Regulators 

Surging inflation will save the dollar as the Fed ramps up rate hikes, wealth manager says

“After years of moribund price increases, inflation is back and it is set to alter monetary policy and currency markets much faster than everyone expects, an investment manager told CNBC Friday” writes Aaron P for cnbc.com. Recent data releases have spooked equity markets on fears that the Federal Reserve could move faster to tighten its monetary policy after years of stimulus.About a week ago, U.S. markets entered correction territory — after dropping more than 10 percent — following stronger than expected jobs data and wage growth.On Wednesday, the U.S. consumer…

Read More
News Regulators 

The UK’s Financial Conduct Authority wants to create a global sandbox

“The UK’s Financial Conduct Authority (FCA) is planning to create a global regulatory sandbox, which would allow fintechs to test their solutions in different countries at the same time” writes Lea Nonninger for businessinsider.com. The FCA is starting to ask for feedback from interested parties, which include fintechs, regulators, and consumers.The FCA also admits that a global sandbox might be an ambitious goal, and it may start out with an international college of regulators that have their own sandboxes.Here is why the FCA has the potential to succeed with its…

Read More
News Regulators Reviews 

Policy Daily Review February 16, 2018

Policy Daily Review for February 16, 2018 U.S. CFTC Commissioner Says Cryptocurrency Exchanges Adopting ‘Self-Regulation’ Could Spur Standards A top official at the U.S. Commodity Futures Trading Commission (CFTC) in Washington has suggested at the agency’s Technology Advisory Committee that the cryptocurrency industry could adopt self-regulation to spur development of standards around protection of consumer accounts and trading practices.   Have a nice trading! Share This:

Read More
News Regulators 

Inflation components of Philly, Empire manufacturing gauges vault in February

“The Philadelphia Fed manufacturing index rose to a reading of 25.8 in February from 22.2 in January” writes Senior Economics Reporter for marketwatch.com. The new-orders index rose 1.6 points to 13.5, and the shipments index slipped 1.9 points to 12.5.In the New York region, the new-orders index and shipments gauges were little changed. Source: marketwatch.com Share This:

Read More