As to be expected in a holiday market, overnight trading was light. Stocks reacted to positive German unemployment data and rallied slightly. US Treasury bonds continue to rally against the backdrop of rising stock prices and the end of QE.
The Euro gave back some of its recent gains against the dollar, dropping slightly below the 1.25 level again. Some analysts thought that with the Fed ending QE and Europe expanding its balance sheet, the only place for the Euro to go was down against the dollar. In fact, Goldman Sachs made shorting the Euro against the dollar their number 1 trade for 2015. Since then the Euro has remained stable, unable to stay below 1.2
Elsewhere in the news:
- Microsoft executive accidentally blogs M&A deal
- This is right after Twitter’s CFO accidentally tweeted a direct message about an M&A deal
- European stocks rise as German unemployment hits record lows
- CNBC, Telegraph, and Independent get hacked by pro-Assad group
- Oil prices fall ahead of OPEC meeting
- Citigroup says Swiss gold referendum vote “makes no sense”
- Should Google be broken up?