It's deja vu all over again.
In a repeat of yesterday's session, where US equities and the dollar levitated in a one-way trade, Tuesday's muted session - where in addition to closed China and South Korean markets, Germany's Dax is also shut for holiday - has seen early dollar and European equity strength, while the S&P is set for new record highs amid higher E-minis and a VIX that is again lower after 5 consecutive days of declines.
Is it QE or is it earnings?
Authored by Christoph Gisiger and Mark Dittli via Finanz Und Wirtschaft,
Howard Marks, Co-Chairman of the US investment firm Oaktree Capital warns that valuations in the financial markets are uncomfortably high and that investors are acting too complacent.
Last Friday, when looking at the historic, record lows in September volatility and the daily highs in US and global equity markets, BofA's chief investment strategist Michael Hartnett said that the "best reason to be bearish in Q4 is there is no reason to be bearish."
While central banks step away from the spotlight, as does Asian data and markets with China and South Korea both taking a weeklong break, there will be a bevy of central bank speakers to "explain" what is going on while it will be a busy week data wise, with the US employment trade balance report due this week, PMI and retail sales in Euro area, as well as PMI and house prices in UK. The key central bank events include the Australia RBA board meeting, ECB minutes,Yellen and Fed member speeches. In Emerging Markets, there are monetary policy meetings in India, Poland and Romania.