While it's convenient to blame Russia for the plot to kill Zelensky, the dissatisfaction with his puppet-like leadership and corruption means his greatest threat is much closer to home.
Another mixed bag of data overnight - something for everyone - ADP showed better job gains than expected (but wage growth soared, re-igniting inflation fears). S&P Global's Services PMI dropped (but prices paid soared) and ISM Services PMI also dropped (notably more than expected) while Manufacturing rose yesterday.
But the market only had eyes for one thing - the plunge in prices paid in ISM Services (which literally diverged from all other recent 'prices paid' surveys and the respondents' comments)...
For context, that is the biggest two-month plunge in ISM Services Prices Paid since Dec 2008...
That one datapoint was all the algos needed and stocks rallied, the dollar and bond yields dropped, gold spiked to new highs, bitcoin jumped higher, and even rate-cut hopes rose immediately (but still less than 3 total rate-cuts priced in for 2024)...
Source: Market Watch
As the US dollar dived back to one-week lows that helped send gold to its fifth record closing high in a row, within pennies of USD$2,320 (spot)...
Finally, as gold pushes to record-er and record-er highs (in USD terms), Real yields refuse to play along...
Source: Bloomberg
Whatever gold is worrying about it is big.
Happy Thursday!
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Andy is the founder of ANDIKA Pty Ltd, a licensed securities & derivatives dealer. He's the author of fiction and non-fiction books and has been a University lecturer on risk and investment.
