Good Or Bad Life Goes On In The Face Of Calamity

One would have justifiably thought that the barbaric attacks in Brussels would have spun out a more extreme reaction in financial markets.

Instead, we experienced a modest rise in the U.S. dollar against the euro and a larger jump against the British pound, although that 1.00%+ jump is not related to terrorism but to the continuing Brexit crisis. (Although the Brussels attacks demonstrate the need for European and world unity on a host of issues.)

The dollar was up 0.30% against the yen, a bit of proof that today was not a risk-off, haven sort of day. The yen generally serves as a refuge currency.

On that same note, spot gold is up a moderate amount strictly on regular trading, the greenback blunting what would have been a much stronger move up. Regardless of the causes, the up-move of 0.33% is neither here nor there as far as bold statements go.

The yields on 10-year, benchmark bonds around the world are essentially unchanged. The U.S. Treasury 10 year barely moved at all.

The interesting split today is in crude where West Texas Intermediate slipped about a 0.15% while Brent North Sea rose approximately 0.70%.

Most surprisingly, the European bourses barely emitted a beep or a boink in reaction to the bombings. The DAX was strongest while the CAC in Paris showed the least sturdiness, although the FTSE was not exactly singing and tap-dancing its way into the hearts of investors.

In Asia, Hong Kong and Shanghai were off but the Nikkei was stronger mainly due to the lower yen.

After the first negative reactions to the Brussels tragedy, stocks in New York turned and headed higher. They were up very mildly before softening again as trading neared close, which is important in a week lacking specific and important news that is also ending on Good Friday, a msrket holiday in the U.S.

While there is no specific reason for stocks to move one way or another, there might be a bit of selling by those who don’t want to be holding anything too risky for three days.

It’s fitting we touch on a painting that hangs in the Musee Des Beaux Arts in Brussels. It is by Breughel and it is called “Icarus.” Icarus was a mythical boy who fell into the sea because the wings his father made for him to fly were attached by wax, which melted when the sun grew too hot. A ship sails by as Icarus drowns. Peasants in the field do not look up from their working, sleeping.

The painting illustrates how, in the midst of tremendously fearful calamity life goes on, as it did today in trading. British poet, W.H. Auden wrote a poem describing it.

In Breughel's Icarus, for instance: how everything turns away. Quite leisurely from the disaster; the ploughman may Have heard the splash, the forsaken cry, but for him it was not an important failure; the sun shone As it had to on the white legs disappearing into the green water, and the expensive delicate ship that must have seen Something amazing, a boy falling out of the sky, Had somewhere to get to and sailed calmly on.

Wishing you as always, good trading,