Trader: Markets Have Entered A “Terribly Negative Dynamic”
by Tyler Durden
ZeroHedge.com
Wed, 05/23/2018
After issuing a dire warning first aimed at Italy, which he said is “on the verge of inducing a fresh European crisis”, followed with an ominous prediction that “Turkey’s goose is cooked”, overnight Bloomberg macro commentator and ex-Lehman trader Mark Cudmore looks at the bigger picture, and in his latest Macro View note he is yet again especially dour, warning that the Italian and EM shocks will spill over, and that “global equities will slump amid a shortage of good news”, predicting that “the next couple of weeks are filled with many potential negative catalysts for global equities but there’s little left on the calendar that might offer respite.”
His conclusion: the market has entered a “terribly negative dynamic that might temporarily overwhelm any bullish economic considerations.” Read why in his full note below.
Global Equities to Slump Amid Shortage of Good News: Macro View
The short-term outlook is dire for global equity markets.
For most major market themes, the marginal newsflow from here is likely to be negative for risk assets.
Turkey’s freefall will continue to weigh on the rest of EM. At this stage, any reluctant emergency monetary policy to defend the lira will only stem losses. Rather than turn the tide, it’ll confirm a crisis has taken hold.
The Rest…HERE
