Also announcing a Share Buyback worth 300 million. Always lots of airlines pu ns. , in theof up and down bond market, this chart 6473, a constant worry for Market Participants when they look at the highyield corporate debt markets represented by the white line. We have seen a declined in the highyield Corporate Bond etfs. That has some worried whether this decline will spillover into equity markets. That does not seem to be the case when you look at the gap between highyield debt and 10 year treasuries. Range, has stayed within represented by the blue line, and that is reassurance or market watchers, seeing the highyield behaving like what we are seeing in treasuries, so not likely to be a catalyst if there was more market turmoil. We dont see contagion when it comes to the credit space. The price action after the fed minutes, we got more clarity, but towards the late part of the session, yields picking up on the 10 year, stocks tumbled, the dollar reversing come so it seems like there
Betty one longstanding story we are watching is treasury yields and where they are headed, and i want to pull up a is behind thethat volatility we are seeing in equity markets, 10year gilts yields. Key level of 3 , and we have been watching that like a hawk, it is almost like a movie. Once you get to the big box somee opening, but for will hit that at three years time, what happens after that . We have seen quite a bit of volatility headed as we have been seeing yields had towards this level, but afterwards is the question. What are we going to see in the markets . Yvonne it is interesting you mentioned this earlier, and the markets have changed. They are not buying the dip anymore, and the 10 year yield edged lower, so whats shifted and what hasnt. Lets take a, closer look to Investor Sentiment and what happened with u. S. Stocks. Stu keenan has more. What we are seeing is the technicals of the market which can show underlying weakness. Does the second day of reversals, it is green ac
They are small potatoes. Kathleen i had an interesting conversation with bill dudley and i am putting that comment of small potatoes from bill dudley seenrspective we have much worse, however, he is convinced as well that, rate hikes will continue and is interesting to me that it isnt just u. S. Fed officials but other central bankers downplay the stock market volatility. We heard it from greg spencer yesterday, and we heard it from ecb officials yesterday, saying it will not affect the policy path. Unless it gets worse and last longer. Yvonne we heard the boe chiming in and it is fueled by the selloff that we saw overnight. Interesting contest of last week, or earlier this week that the worst may be and this is a technical shakeup given the fact that most of this market with short volatility, but now that trade is that, perhaps the dust settles, we should be ok. But today was an indication that we could see more to go. Kathleen may more dust coming, we shall see. The s p dropped takes
Fire truck, sparking an inquiry. Betty quite a surprise here, aurth quarter gdp showing contraction here of 0. 2 quarter on quarter. 1 10stimate was a gain of of 1 , a slight down in the prior year. Expectations were that this was not going to be a great number, but contraction is a surprise here. It is the first fourthquarter contraction for the First Time Since 2008, also year on year, just up 3 . Gain somate was a 3. 4 not good news here for south korea. Yvonne it was a banner year when it comes to exports, i guess you could blame to the strengthening of the one that there is also a nationalhow they holiday in october. The bank of korea upgraded this growth to 3 , so there is still a lot of good with exports still blooming those slowly, and private consumption has improved a bit as well. And how were looking at the currency taking a look at how dare faring so far. Flat, the nikkei and changed. We expect a pullback from the nikkei, it was a pretty ugly day yesterday for equities. It
Fraught with risk. Betty we are getting breaking industrialth korea production for the month of july, coming in better than 1. 9 , year on year. Estimates, they expected a decline of 2 10 of 1 , but we see a rebound of 1 10 of 1 . The prior month was revised lower, that is what you see a bigger rebound. Nonetheless, it speaks to the same conclusion among economists in south korea that the economy continues to grow in the second half, fueled by exports as well as domestic consumption, despite all these headlines we had the last 48 hours on north korea. Yvonne that is right. The economy is still on solid footing. But you wonder, we have heard hawkish rhetoric from the bank of korea governor. Can they continue this type of language if this north korea issue is not going away . It could start riling up markets and consumer sentiment, delay investment plans from businesses. That is the key question. We are looking to that press conference from the governor. A big day today with the u. S. Gd