The British voters threw PM Theresa May a big curve ball Thursday in the general election by not giving her Conservative Party the majority she sought, forcing her to seek to form a new government with minority political parties.
Also on Thursday we had ex-FBI Director James Comey testify before the Senate on his firing and the probe into Russia’s influence into the US presidential election.
Neither of these events had an effect on the markets, which is puzzling in the brief and troubling in the longer term.
To say the possible beginning of a presidential impeachment occurring in Washington and equities give you a day where as traders say “was a waste of a clean shirt and car fare,” is astounding.
As I wrote yesterday, market participants that I speak with see Friday as a possible tipping point for equities, looking at the futures market then the tipping point maybe the markets building support instead of falling.
Not to get into high weirdness, but how does the British, US and global investors see a government crisis in London and Washington as a buying opportunity unless there are bigger buyers to buoy prices?
So let’s see how US markets close today and then we may get an idea of what is to come.