China’s deflating, US’s roaring [Video]

Hawkish comments from the Federal Reserve members continued to make the headlines in the US, yesterday, with Susan Collins, Thomas Barkin and a new Fed Governor Adriana Kugler, all saying the same exact thing: that there is no hurry for the US to cut the interest rates.

But knowing that the Fed is done hiking its rates and the expectation that the next move from the Fed will be a rate cut is enough to keep the market in a sweet spot. The US had a record-breaking auction for its 10-year bonds yesterday, where it sold $42bn worth of notes at a lower than anticipated yield, the S&P500 renewed record and traded at a spitting distance from the 5000 psychological mark. Disney followed in the footsteps of its happy tech peers yesterday and rose almost 7% in the afterhours trading.

Sentiment was less cheery in Germany after the commercial real estate stress jumped to Germany. Meanwhile in China, the CSI traded mixed after the announcement of deeper deflation in January. Alibaba missed the opportunity to break above its down-trending channel that has been building since last August as its shares dived 6% after its sales missed expectations in the latest Q4 report.