A POTENTIALLY DRAMATIC WEEK IS ENDING ON A WHIMPER

Trades sparked by the FOMC’s dovish tone partially unwound yesterday as stocks slumped and Treasury yields edged higher following an 11-point pre -FOMC tumble.

The Treasury market was spooked by the Bank of England’s comments that it is closer to raising rates than previously expected. It is thought American growth will drive demand abroad.

There was some attention focused on the President’s 2018 budget, where historically deep budget cuts are proposed, touching almost every federal agency and program and dramatically reordering government priorities.

I am certain the bureaucracy will vehemently fight the reduction of the Administrative State, a state that grew exponentially over the last eight years and has stifled growth and invention.

Generally speaking, the events/statistics of this week were largely as expected, a week that could have been of great significance producing considerable volatility.

First quarter earnings season commences in about three weeks. The economic calendar is “relatively light” until the first week of April. Will markets become quiet until that juncture?

Last night the foreign markets were mixed. London was up 0.16%, Paris was up 0.33% and Frankfurt was up 0.08%. China was down 0.96%, Japan was down 0.35% and Hang Sang was up 0.09%.