Shrinkage.
From Marc to Market:
The foreign exchange market looks eerily calm. After the safe haven flows yesterday supported the Swiss franc and yen, today they have diverged. The yen’s minor gain puts its atop the G10, while the Swiss franc’s 0.25% loss puts its at the bottom. The pressure in the European bond market has eased today, but Moody’s review of France’s debt rating late today poses a challenge, and although the Macron government has threatened military assistance to quell the social unrest, more activity is likely this weekend.
The Philadelphia Stock Exchange Semiconductor Index tumbled 6.7% yesterday. It was the largest drop since June and tested the 200-day moving average for the first time since June 2025. December WTI is within pennies of the contract high set on Tuesday (~$101.35). Brazil’s presidential run-off between Lula and Bolsonaro will take place Sunday. It looks like dead heat. The markets responded favorably to Bolsonaro’s lead in the first round....
....MUCH MORE
