USA: Despite the huge increase in the monetary base, it seems that the circulation of it is still in low gear.

·         Some profit takings quite logically, : DJ -1.2%, S&P500 -1.3%, NASDAQ -0.5%, NIKKEI -0.3% and EUROSTOXX +1.0% and down by 1.3% right now.

·         The FED announced that it will buy back some 300 bns USD of treasuries. Despite the huge increase in the monetary base, it seems that the circulation of it is still in low gear. Inflation is likely to come back sooner or later when the situation normalizes and bonds, govies in particular, may then suffer the most.

·         The labour market is going from bad to worse. This is quite normal in such an environment and don’t forget that it is a late indicator for the economy, hence for the stock markets.

·         VIX is bouncing back at 43.6. Gold is bouncing back significantly at 961.2 USD per oz as the oil price (BRENT CRUDE SPOT) at 48.8 USD. The USD gets weaker against the EUR at 1.37. CMS 10-2 years spread is stable at 1.49. The 5y CMS stands at 2.724 and the 3y at 2.225.

 

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