Rebound
The equity index markets had a nice recovery on Thursday, with the Dow and S&P 500 both closing higher on the day. The market looked like it was going to have some follow through from yesterdays big downward move. Dow futures traded down to 20,474 and spent most of the morning in negative territory. Things turned around mid day and the ow moved into positive territory and put in a high at 20,740 before closing near the 20,640 level.
Dollar stops slide
The Dollar got a bit of a bounce that ended a five day sell off. Turmoil in Brazil had the Real plunging and the Ibovespa index down over 8%. The move brought trading to a halt after triggering circuit breakers. The US Dollar gained strength as the picture in Brazil and other emerging markets got a bit troublesome. The Euro also reversed trend, trading near 1.11 again after four consecutive higher closes. The British Pound also joined the group of currencies that were lower against the Dollar.
Anybody’s Guess
As the concerns out of Washington D.C. continue, the markets will look to pick and choose which news matters most. I’m not calling for another major sell off like we saw on Wednesday, but I’m expecting some visits lower in the next few days. Even if the market doesn’t get a strong push down again, I think it will struggle a bit to get to its recent highs.
John Weyer
Director Commercial Hedging
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