Nicholas Vardy
Global Stock Investor Hotline 56
Yesterday marked a sharp drop in global markets, with the MSCI Emerging Markets Index dropping 4% and the MSCI EAFE Index markets falling 3.4%. Both of these broad measures of global stocks are trading below their 200-day moving averages.
The Global Bull Bets on the Yellow Metal
Global stock markets took a breather last week, ending on a down note for the first time in several weeks. Overall, global financial markets, your currency bets included, were basically flat as we enter into the summer doldrums. The basic trends — euro weakness, U.S. dollar strength, weakness in stocks — remain in place, with major global stock market indices all trading below their critical 200-day moving averages.
Global Stock Investor Hotline 55
The big news in global markets this week was the Chinese government’s announcement that it may begin to re-value the yuan against the U.S. dollar.
The “Anti-Greece” of Emerging Markets
Global stock markets continued their recovery last week, with all major U.S. indexes up. Asian stock markets traded higher overnight, following the Chinese government’s announcement that it will allow more flexibility in managing the exchange rate of the yuan.
Global Stock Investor Hotline 54
Sentiment in financial markets shifted to the positive as global stocks hit a one-month high today and the euro briefly hit a two-week peak. The S&P 500 index turned positive for the year and closed above its 200-day moving average yesterday for the first time in a month. The MSCI Emerging Markets Index now is just a hairsbreadth below this critical level.
Playing the Bounce
Market jitters abated somewhat last week, sending all major U.S. indexes into the black. The Dow Jones Industrial Average gained 2.8% for the week. The S&P 500 rose 2.5% and the Nasdaq gained 1.1%. The MSCI Emerging Markets Index rose 4.2%.