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Market Update: The War Premium Unwind

Posted By admin On September 10, 2013 @ 11:16 am In Money Watch | Comments Disabled

Zero Hedge [1]
September 10, 2013

The last 2 days market reaction has been one of war-premium reversion for all asset classes. Oil has tumbled back this mnorning to around $106.50 (its pre-Kerry level) also in line with the USD which has fallen back to unchanged from that initial warmongery. European stocks remain the big winner – up 3.5% since Kerry started but today’s rise in stocks lifts the S&P to +1.5% from 6/27 (so no war and we don’t care about Taper). It seems, however, that the safe-havens are having the war premium sucked out and reality of a SepTaper pricing back in. 10Y Treasury yields are back above 2.96% (with 30Y bonds -2% in price from Kerry) and Gold and Silver are tumbling (-3.5% and 5.9% respectively from Kerry’s initial ravings)Now, should we worry about crossing 3.00% again (and the surging cost of capital that will crimp consumer spending and corporate buyback abilities)? Or does that not matter now that war is off the table for 10 minutes?

 

From Kerry’s initial war-mongery…

Market Update: The War Premium Unwind 20130910 op1 [2]

 

The last week in bonds and stocks…

Market Update: The War Premium Unwind 20130910 op2 [3]

 

Charts: Bloomberg


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URLs in this post:

[1] Zero Hedge: http://www.zerohedge.com/news/2013-09-10/market-update-war-premium-unwind

[2] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/08-2/20130910_op1.png

[3] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/08-2/20130910_op2.png

[4] Bernanke Puzzled by Gold Rally: http://www.prisonplanet.com/bernanke-puzzled-by-gold-rally.html

[5] Market Update: “Logic Has Been Replaced by Fear, By Panic”: http://www.prisonplanet.com/market-update-%e2%80%9clogic-has-been-replaced-by-fear-by-panic%e2%80%9d.html

[6] QE3 Already Has Gone Wrong: http://www.prisonplanet.com/qe3-already-has-gone-wrong.html

[7] MARC FABER: The Stock Market Has Peaked: http://www.prisonplanet.com/marc-faber-the-stock-market-has-peaked.html

[8] Pelosi: “I Don’t Remember Saying that Everybody in the Country Would Have a Lower Premium”: http://www.prisonplanet.com/pelosi-%e2%80%9ci-don%e2%80%99t-remember-saying-that-everybody-in-the-country-would-have-a-lower-premium%e2%80%9d.html

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