Strong Dollar Trade Chart 1: The price of Gold began its parabolic ascent as in the summer of 2007 moving from approximately $665 to over $1000/oz. as the DXY (U.S. dollar) gapped lower on Fed actions to combat the credit bubble.
Economy…what’s this – a thaw in the European Union economic frost?
Iron ore in bear market after having help up reasonably well.
Take a look at the TSE Mothers Index which is a market cap weighted index of high growth and “emerging stocks” (early stage companies) in Japan.
U.S. Dollar quietly surging higher and this morning kisses the closing level of July 24th last year, which marked multi-year highs.
Recall walking through the ubiquitous chain drug store near you to see the cologne shelves where the knock-off brands advertised “If you like Paco Rabanne, you’ll love ‘Paul Raven’ cologne.” Basically it smells the same but is a lot cheaper.
Petrobras (PBR, quote) issuing $11 billion in debt to set a record for an emerging markets debt offering. The company is using the opportunity of negative real rates in Brazil (officially no, but in terms of true cost of living, YES), and most of the world to tap a global debt market starving for yield.
Hard to feel good about the level of move we have seen in Japan relative to itself. Sure, only a 25bp move in the Japanese 10yr JGBs but this is from 0.60% yield to 0.85% yield and it happened in 3 days.