In the final day of the week, it has again been a story of currencies and commodities setting stock prices, however instead of yesterday's Yen surge which slammed the USDJPY as low as 107.67 and led to a global tumble in equities, and crude slide, today has been a mirror imoage after a modest FX short squeeze, which sent the Yen pair as high as 109.1, before easing back to the 108.80 range.
The latest from Nomura's Bob "the bear" Janjuah
Power of the Fed's words waning?
But, but, but... jobs...
Financials suffered their biggest drop in 2 months... (down 3 of the last 4 days) - on target for the worst week since the first week of the year
We suspect Financials have further to fall...
Having pounded the table on buybacks as the only marginal source of stock purchasing since some time in 2013, we were delighted one month ago when Bloomberg finally got it, writing an article titled "There's Only One Buyer Keeping S&P 500's Bull Market Alive." The answer: corporate stock repurchases of course.
This is what it found:
In a quiet start to the week following last week's surprisingly strong rebound which followed a stronger than expected jobs report (perhaps to demonstrate that good news is once again good news), Japan stocks continued to sink as the USDJPY dropped to fresh lows, while commodities declined for a fifth day as the supply glut from crude to copper weighed on prices, dragging down commodity currencies. European equities rose, rebounding from a one-month low.