Comment of the Day
Video commentary for September 27th 2022
A link to today's video commentary is posted in the Subscriber's Area.
Some of the topics discussed include: bitcoin fails to hold intraday rally, bond yields extend advance, dollar remains firm, gold steady, stock markets weak.
House Sales Collapse as UK Lenders Withdraw Mortgage Offers
This article from Bloomberg may be of interest to subscribers. Here is a section:
Deals for house purchases are collapsing after lenders pulled mortgage offers in response to soaring interest rates.
Smaller lenders such as Kensington, Accord Mortgages and Hodge were among those to say they were withdrawing products Tuesday. That follows the decision by Lloyds Banking Group PLC (LSE:LLOY) -- the UK’s biggest mortgage provider -- on Monday to halt some offers, while Virgin Money UK PLC (LSE:VMUK) temporarily stopped offering home loans to new customers.
Major firms weighed in later Tuesday. HSBC Holdings PLC (LSE:HSBA) told brokers it was removing new mortgage products for the rest of the day while Nationwide Building Society announced that it was increasing rates across product ranges starting Wednesday. Banco Santander (LSE:BNC) SA said it was removing some products and increasing rates on many others.
Jessica Anderson, a 33-year-old who works in publishing, was set to buy a house in Walthamstow, east London, with her husband until the seller pulled out last week.
“We’re in an uncertain position where we’re not sure whether it still stands,” she said, regarding the couple’s mortgage offer. “Since the approval there have been two interest rate increases.”
Eoin Treacy's view - The UK housing market is at a significant point of peril because of interest rate uncertainty. Fixed rate loans typically trade at a 100-basis point premium over the 5-year government yield. At present that implies a mortgage rate of 5.7%.
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Putin Raises Gas Pressure as He Moves to Annex Ukraine Regions
This article from Bloomberg may be of interest to subscribers. Here is a section:
Russia threatened to cut off the last gas pipeline to Ukraine’s European allies and moved to annex a large chunk of Ukrainian territory amid a string of military setbacks in the seven-month-long war.
Eoin Treacy's view - Battlefield setbacks for Russia increase potential for them to cut off supplies of gas to all of Eastern Europe. That’s much more likely that the nuclear option.
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Bitcoin Turns Lower as US Stock Selloff Extends Into Sixth Day
This article from Bloomberg may be of interest to subscribers. Here is a section:
Cryptocurrencies failed to hold onto gains Tuesday as US stocks also faltered and extended losses for a sixth straight session.
Bitcoin, the world’s largest digital asset by market value, fell as much as 1.2% to trade around $18,878, failing to sustain an earlier advance. Ether, the second-largest cryptocurrency, also dropped. Most major digital assets were posting declines as of 1:45 p.m. in New York.
The downturn occurred as US stocks turned lower, with the S&P 500 on pace for a sixth session of losses. Global financial markets have been gripped by volatility as central banks continue to promise that they’re going to keep raising interest rates to fight inflation that’s proven stickier than many had thought.
“BTC did seem to pick up the risk selloff once again today. Followers of the ecosystem have been excited to see correlations with risk-assets begin to break, meaning the ‘fast-money’ speculative crowd may be losing their influence on the space,” said Stephane Ouellette, chief executive of FRNT Financial Inc. “With today’s move, it doesn’t seem like we’re quite there yet -- but consolidation at these levels continues to move in a bullish direction where loose hands sell BTC to the near cult-like ‘hodler’ community.”
Eoin Treacy's view - At one point this morning bitcoin was up over $1000. That was clear evidence of the buy the dip instinct is still alive and well. Unfortunately for the bulls the early enthusiasm was not sustained through the close and bitcoin finished in negative territory.
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Speaking Engagements - World Money Show October 2022
I have agreed to speak at The World Money Show in Orlando on October 30th.
The Chart Seminar London November 21st and 22nd 2022
We are living through fast moving markets so the next venue for The Chart Seminar will be November 21st and 22nd this year in London.
In the meantime, if you have any questions, would like to attend, or have a suggestion for another venue please feel to reach out to Sarah at sarah@fullertreacymoney.com.
The full rate for The Chart Seminar is £1799 + VAT. (Please note US, Australian and Asian delegates, as non-EU residents are not liable for VAT). Annual subscribers are offered a discounted rate of £850. Anyone booking more than one place can also avail of the £850 rate for the second and subsequent delegates.
Eoin's personal portfolio: precious metals loss taken September 23rd 2022
One of the questions subscribers ask most often is how to find details of my open trades. To make it easier I will simply repost the latest summary daily until there is a change.
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