Overview: Some gestures in the US-China trade spat have given the market the reason to do what it had been doing, and that is taking on more risk. Equities are higher in Asia Pacific and opened in Europe higher before slipping. The MSCI Asia Pacific and the Dow Jones Stoxx 600 are advancing for the …
Focus on the ECB, while the Dollar Slips below CNY7.09 Read More »
Overview: Global equities are advancing at least in part on ideas that trade tensions are easing. China announced it would not take immediate action on the five percentage point increase in levies that the US announced strictly in response to China’s retaliatory tariffs. A lull between blows is not the same thing as de-escalation or …
US Dollar Finishing August on Firm Note as Euro nears Two-Year Lows Read More »
Overview: The capital markets are calm today, though there does seem to be some optimism creeping back into the market. The Chinese yuan strengthened, snapping a ten-day slide and Italian bank shares index has risen by more than 1% for the fourth consecutive session. The safe-haven yen and Swiss franc are softer. In fact, the …
Johnson Faces Legal Challenges and Conte may be Given an Extension Read More »
Overview: The capital markets have turned quiet. There have been no more headline bombs about trade, and China set the dollar’s reference rate much lower than projected. Asia Pacific equities were mixed. Hong Kong, China, India, and Singapore were on the downside, while Taiwan, Korea, and Australia rose. European markets are heavy, and the Dow …
Overview: Hope triumphed over realism yesterday, and realism is fighting back toward. Asia Pacific markets, however, traded on the echo from the recovery in North America on Monday. The MSCI Asia Pacific recouped part of yesterday’s drop, led by Chinese markets. Hong Kong was the main exception. The enthusiasm faded by the European morning and …
Realism Fights Back After Hope Dominated Yesterday Read More »
Overview: China announced some changes in its interest rate framework that is expected to lead to lower rates. This helped lift equity markets, which were already recovering at the end of last week from the earlier drubbing. Chinese and Hong Kong shares led the regional rally with 2-3% gains. The Nikkei gapped higher for the …
China’s Rate Reform Helps Markets Extend End of Last Week Recovery Read More »
Overview: We had anticipated that the dollar’s downside correction against the European currencies was over or nearly so and looked for the dollar to find better traction. The Dollar Index held above the previous week’s low. The euro’s high for the week was recorded on Monday near $1.1815. With the weight of Brexit, sterling was unable …
The first session of September was marked by the US Labor Holiday. Several developments will help shape the investment climate. Japan: A surge in capital expenditures will boost expectations for an upward revision to Q2 GDP, which will be released on September 9 in Tokyo. Recall that Japan’s economy contracting by 0.2% in Q1, but rebounded in …
6 Things That Happened On Monday You Should Know About Read More »
Corrective pressures grip the capital markets today, helped by the easing of the selling pressure on Turkey, but its more a respite than a relief as no new policy initiatives are behind the lira’s upticks. The implication of this is that it is unlikely to last. In fact, the dollar’s low in early Europe a …