Explanations for Tuesday’s market rip higher are initially hard to explain.
The Philly Fed President Harker stated late Monday he expected two to three interest rate hikes in 2016. The theme had been, if so, this wouldn’t be bullish for markets. Meanwhile other regional Fed governors, Boston, New York, Chicago, Minneapolis, Dallas, Philadelphia, Atlanta and St Louis recommended keeping the discount rate unchanged.
But with expectations increasing for higher rates the dollar moved higher on weaker expectations from Europe and Japan. This action drove down gold and other commodities but not crude oil which rose on declining rig data.
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