The reason I always look at macro markets, besides the fact that they’re fascinating, is because they do have an impact on investor morale.
Traditional markets finished last week on a risk-on note. Investors were bolstered by reassuring inflation data and ignored the jobs data, which declined but was broadly in line with expectations.
Yesterday, traditional markets were mainly moved by inflation data coming out. Numbers are better than expected and hint at a pause in the incessant ramp-up we’ve observed recently.
Bitcoin has failed to hold early gains, with the market falling 2.5% on the day. We are back on the 200d moving average line at $45,046. As the week has progressed, we have witnessed an increase in activity across derivatives. Generally, this is supportive of a trend, as opposed to signaling the end of the move.
Yesterday, the focus was on the almost $1 trillion infrastructure bill that was voted forward by the Senate and onto the House of Representatives.
Most equity indexes pulled back from record highs yesterday. But it sounds more dramatic than it is.
Narratives can change pretty quickly. Earlier last week, concerns about the economy or the delta variant pushed equity indexes down. On Friday, though, those same indexes reached record highs on better-than-expected jobs data.
Investors are oscillating between optimism and pessimism regarding earnings, the economy, the virus, and, in the near term, jobs data due today in the US.
Until the US releases jobs data, due to come on Thursday, most investors are staying in wait-and-see mode.