Buy when there is blood in the street? JPM says ‘yes’ [Video]

Risk sentiment improves both in the European and the American stock markets since yesterday, thanks to the abating sovereign bond selloff. Financials and mining stocks took the lead, small caps outperformed their big cap peers, with Russell 2000 bouncing 1.63%, whereas gains in the major US indices remained between 0.85% and 1.30%.

US crude slipped below the $90 per barrel although the weekly API data suggested a 2-million barrel decline in the US inventories versus the expectation of a 400’000 barrel build.

JP Morgan says they have a magic indicator that says it's time to jump on the back of a bull, but CAUTION!

Improved sentiment is put on the back of more optimism about reopening, meanwhile the hawkish Fed expectations and the rising yields continue being a serious threat to the actual gains, as the major triggers behind the latest bond selloff are still in play. This means that there is a high risk of a sudden mood swing before Thursday’s US inflation data.

Elsewhere, Turkey’s finance minister said that inflation in Turkey rose for reasons that foreigners cannot understand, so as a Turkish citizen, let me explain why!