Traders Musings Over Stock Market Chaos & Madness After Fed, Jobs and Technology Sell-Off

Looking back at a volatile week with TradersCommunity Trading Room traders. Friday closed with the US jobs report and heavy market selling. Join Andrew, Alex and Mahdavi in a candid discussion of the markets, fundamentally and technically within their trading plans. Feel free to share, like and subscribe to our channel and comment below. Get insight from traders after the chaos in Small Caps through to the S&P and Nasdaq futures and options as they explain through charts and trades. … Continue reading “Traders Musings Over Stock Market Chaos & Madness After Fed, Jobs and Technology Sell-Off”

CBO Estimates Build Back Better Act To Increase Unified Deficit By $115.1 billion

The Congressional Budget Office is out with an Estimated Budgetary Effects of Title VI, Committee on the Judiciary, H.R. 5376, the Build Back Better Act. CBO estimates that enacting this title would result in a net increase in the unified deficit totaling $115.1 billion over the 2022-2031 period. That increase in the deficit would result from an increase in direct spending of $147.2 billion and an increase in revenues of $32.1 billion. Some of those budgetary effects are associated with … Continue reading “CBO Estimates Build Back Better Act To Increase Unified Deficit By $115.1 billion”

Fitch Warns United States Could Lose ‘AAA’ Over Political Brinksmanship Over Debt Limit

Rating agency Fitch warned debt limit games could put US AAA rating at risk. If US debt limit were not raised or suspended in time, political brinksmanship and reduce the financing flexibility could increased risk of sovereign default United States of America at ‘AAA’

US Current Account Highest Since 2007 at -$190.3 billion

The US announced  Q2 2021 current account deficit grew to $190 billion or 3.3% of GDP, its largest since Q2 of 2007 from a downwardly revised $89 billion prior and compared to forecasts of $191 billion shortfall. Reduced surpluses on services and on primary income mostly offset by  reduced deficit on secondary income.

US Sovereign Rating Affirmed AA+ With Stable Outlook Stable By S&P

Standard and Poors rating agency affirmed that the US sovereign ratings remain ‘AA+/A-1+’ and the outlook remains stable. The US is thundering to increasingly massive debt levels since the global pandemic. The S&P says sovereign stability is based on strong American institutions, a diversified and resilient economy, extensive monetary policy flexibility

Fitch says 2021 Loan Defaults To Top 2008 Rate

Fitch ratings says the cumulative effect from the Covid crisis worse than the financial crisis of 2008-2010. The U.S. leveraged loan default rate to top high yield in 2021 as YTD Default Rate Hits 4%. Nearly 40 percent of the leisure/entertainment universe could default by YE 2021.

China and Japan’s holdings of U.S. Treasuries Fell in May While U.K. Holdings Increased

There has been constant chatter China will dump it’s US Treasury holdings. While they have fallen for the last 3 months, from $1120 to 1110 trillion the biggest seller was Japan in May. Ahead of Brexit the UK increased their holdings of US securities the U.S. Department of the Treasury’s Treasury International Capital (TIC) data for May 2019.

Italian Debt More Than Twice EU limit, Risk EU Imposes $4 Billion Penalty

Right on the heels of Matteo Salvini’s Lega party winning over 30% in the European elections sources say the European Commission is considering proposing a 3.5 billion-euro ($4 billion) penalty on Italy over its failure to reduce debt per EU budget rules.