Overview: Investors continue to clamor into risk assets. Led by Chinese shares, the MSCI Asia Pacific Index pushed higher for the third session this week to new five-month highs. Europe’s Dow Jones Stoxx 600 is trying to snap a two-day decline with the help of better than expected revenues for its largest tech company. US …
The Dollar is Sold through CNY7.0 as Chinese Equities Continue to Rally Read More »
The Federal Reserve moves to center stage next week. Outside of the US and Chinese inflation measures, it looks to be a relatively light week in terms of high-frequency economic data. Investors are still ruminating over the surprising jobs report (gain of 2.5 mln jobs vs. forecasts for 7.5 mln loss). Yes, there were classification …
Fed Moves Back to Center Stage as Transmission Mechanism is Challenged Read More »
In the iconography of Mao, some see pictures of the Chairman showing both ears as signaling that he was listening to all the people. In this sense, Powell had his Mao moment. He listened to the market. He has been struggling to find the right message for the market. The Fed has not changed what …
This Great Graphic composed on Bloomberg shows the balance sheets of the Federal Reserve, the European Central Bank, and the Bank of Japan as a proportion of GDP. The Federal Reserve ‘s balance sheet (as a fraction of GDP) is depicted in the green line. The primary reason it has drifted lower in the past …