By Dana Lyons of My401kPro.com
In terms of global reach, the post-February equity rally has been a fairly broad advance. Some markets, most notably the U.S., have resumed their former relative strength while other regions, like emerging markets and Latin America, have seen strong mean-reversion bounces from very oversold levels, One region conspicuously lagging during this rally, however, has been Europe.
Unlike yesterday's overnight session, which saw some substantial carry FX volatility and tumbling European yields in the aftermath of the TSY's anti-inversion decree, leading to a return of fears that the next leg down in markets is upon us, the overnight session has been far calmer, assisted in no small part by the latest China Caixin Services PMI, which rose from 51.2 to 52.2 (even if the employment index dropped to a three year low, suggesting China's labor problems are only just starting).
Submitted by Mike Krieger of Libertyblitzkrieg
The ECB’s Monetary Policy Is Now Creating a Rush Into Derivatives
One of the most catastrophic things central banks have done in the post financial crisis period is destroy financial markets. Investors are no longer investors, they’re merely helpless rats running around the lunatic central planning maze desperately attempting to survive by front running the latest round of central bank purchases.
While the surge in Q1 market volatility has had a dramatic impact on asset prices, and led to some unprecedented central bank interventions to stabilize markets, one product that has seen a dramatic hit and has yet to rebound, is M&A.
According to BofA, North American M&A volumes declined again in March, falling to $107bn from $140bn in February, $157bn in January and the recent peak of $410bn in November of last year.