SNB Surprises With Another Rate Cut

But the Norges Bank stays the course

Highlights

• Diverging central bank moves impact the FX market

• The Fed falsely believes the economy is stronger than it actually is

• Buy the dips in uranium!

• Negative revisions flag continued loss of economic momentum

While We Were Sleeping

U.S. futures are pointing, yet again, to a modest drop in the Dow and a +0.7% jump in the Nasdaq at the open. The Euro Stoxx 50 has turned in a +0.5% gain at the moment. Asia was predictably mixed: advances in Taiwan (+0.9%), India (+0.4%), Korea (+0.4%) and Japan’s Nikkei 225 (+0.2%); but losses in Hong Kong (-0.5%), Thailand (-0.5%), China’s Shanghai Composite (-0.4%), and Singapore (-0.2%). All in, a wash for Asia-Pacific equities, which finished the session unchanged, and EM equities are on pace to do the same. Bond yields in the U.S. and across the pond have climbed +3 basis points (to 4.25% for the 10-year T-note rate — though this year’s total return loss has pretty well vanished at this point).