Markets have shrugged off the mildly-disappointing jobs report and returned to the dynamic of the past few days. Note and bond rates are down yet AGAIN, stocks are weak, and the dollar is very strong. These are all reverses from early morning trading.
There’s a fairly standard pattern in unsettled times (geopolitically or economically): market participants want to get some sleep over the weekend so they get flat on Friday afternoons. That’s what today’s action looks like to me.
What has markets unsettled going into this weekend? Not the impending snowstorm that will barely touch New York. It’s the fear of a sovereign default (or two) in Europe.
TNL