Fear is affecting the markets as investors start to price in a recession and a “financial event”, according to Michael Hartnett, Chief Investment Strategist at BofA Merrill Lynch Global Research. Yet using a combination of five sentiment indicators, Hartnett believes that markets are oversold and that a bounce in risk assets is likely.
The spread between Greek and German 10 year bond yields is widening and has achieved a new multi-month high. Riccardo Ronco, Head of Technical Analysis at Aviate Global, thinks this may mean troubling times ahead.
The relationship between USD/JPY and gold is one of the most interesting intermarket stories around, according to George Davis, Chief FIC Technical Analyst at RBC Capital Markets. He points out that this correlation is now at its most negative since 2008.
Ravenpack has launched RPNA 4.0, the latest version of its news analytics product. The new version now includes sentiment indicators and the ability to identify more than 2000 geopolitical, macroeconomic and corporate events as part of a news analytics trading strategy.