Markets Pause for Breath
Markets are eking out a modest recovery after a three-day paroxysm of selling that saw traditional safe haven currencies gain against their risk-sensitive rivals. North American equity futures are inching toward a positive open, Treasury yields are flat, and the dollar is stable. The pound and euro are trapped in listless trading ranges, with no obvious catalysts for movement on the calendar. Recession fears appear to be overtaking monetary tightening expectations in driving market behaviour once again, but yesterday’s newsflow remained broadly supportive of higher rates. Weekly unemployment claims unexpectedly fell, dropping by 15,000 to 190,000, homebuilding activity fell, but...