S&P 500 moved up in two bursts – on underwhelming manufacturing PMI and on Powell. No more hikes – yields moved sharply lower on both short and long end, implying the end of the tightening campaign even if inflation is demonstrating sticky characteristics. Former leaders again kicked in on the rates relief – tech, communications and discretionaries – and market breadth was synonymous with risk taking.

Certainly also the BoJ is to be less feared – and the premarket yen upswing vs. the dollar is another expression of the yields differential now narrowed. Even though Powell can surprise and hike in Dec (unlikely), markets decided that‘s it, and with the exception of geopolitical turmoil, stocks are now in risk-on mode, especially should they remain in the high 4,280s with ease (they will).

To give you a taster, here is my summarizing commentary from our intraday channel, fitting here as well:

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Credit Markets

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Yields couldn‘t muster to go up on FOMC – even without more Mideast escalation, these are likely to trend down from here, maybe up to 4.30% on the 10y eventually.

Gold, Silver and Miners

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Precious metals aren‘t ready to rise sharply yet, but the correction has reached an important milestone. Greater appreciation has to wait for when the dollar turns south – it would be easier now given the rates differential not growing.

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