Equities Down And Treasuries Up

Equities trade lower for a myriad of reasons. There was some focus on North Korea, considerable attention on Irma and central bank decisions. And then there is the Trump agenda.

A myriad of firms are forecasting a considerable decline for the averages, a decline if it does occur will be the most predicated decline in history.

Commenting briefly upon Irma, I think the National Weather Service is offering sound advice, defined as it does not yet know where Irma is going, but be prepared just in case. A mid-day bulletin stated it has the same odds of completely missing the US as it does of passing over the Keys. This is a far cry from sensationalist pre-determined headlines.

Treasuries surged yesterday, rallying the most in 10 months. The advance is not predicated upon central bank policy, but is rather technical in nature partially predicated upon North Korea and Irma.

Oil jumped 3.6% yesterday as post Harvey refinery revivals triggered demand boost. I ask cynically why did crude trade lower last week as it was inevitable that demand would return once the refineries reopen?

Last night the foreign markets were down. London was down 0.65%, Paris was down 0.22% and Frankfurt was down 0.07%. China was up 0.3%, Japan was down 0.14% and Hang Sang was down 0.46%.