That’s the message from the global economy as the reflation trade tries to take hold once again today. The Baltic dry freight index continues to roar, reversing its late-2008 collapse, indicating investors expect global trade to revive in the foreseeable future. Having fallen to the point where cargoes were being moved for free, freight rates had no where to go but up…
Metals are on the rise again today, led by copper.
Chinese buying of EUR/USD has been rumored today, suggesting that the single greatest beneficiary of a global reflation is trying to fan the smoldering embers into flame. EUR/USD trades at 1.3025, close to sessions highs. 1.3070, the Wednesday high, is next resistance.
Any disappointment over the delay in the Geithner bank bailout plan has been tempered by leaks that there will be a private-sector component to the bailout.
Just crossing the wires now are comments from the EU’s Almunia bemoaning the lack of economic policy coordination among EU members.