Overview: A recovery in US stocks yesterday, coupled with optimism over Moderna’s vaccine, is providing new fodder for risk appetites today. Equities are being driven higher, and the dollar is under pressure. Most equity markets in Asia advanced. China and Taiwan were exceptions, and, in fact, the Shanghai Composite fell for the second consecutive session …
The Dollar Slumps and EU Court Rules in Favor of Apple Read More »
The economic calendar and central bank meeting diaries are busier in the week ahead. The highlights include three G7 central bank meetings (the Bank of Japan, the Bank Canada, and the European Central Bank), Chinese Q2 GDP, and the first look at US July survey data (Empire and Philadelphia Fed). The US also reports June …
Macro Dynamic Remains the Same but the Calendar gets Busy Read More »
Overview: Shortly after the US stock market opened sharply lower, the Federal Reserve announced that it’s Main Street facility was up and running. US stocks never looked back. After the S&P 500 recouped its full decline, the Fed announced it would begin buying corporate bonds. Up until now, it had been buying representative ETFs. Stocks rallied …
Overview: The swing in the pendulum of market sentiment toward fear from greed began last week and has carried over into today’s activity. Global equities are getting mauled. In the Asia Pacific region, no market was spared as the Nikkei’s 3.5% drop, and South Korea’s 4.7% fall led the way. In Europe, the Dow Jones Stoxx …
Next week is important. Two G7 central banks meet and at least half a dozen emerging market central banks. There is a European Summit and perhaps a political effort to reinvigorate the UK-EU trade talks, which seem to be crashing on the shoals of stubbornness. The ECB offers its most generous long-term targeted loan that is …
Overview: The nearly three-month rally in risk assets ended with high drama and a stomach-churning almost 6% slide in the S&P 500 yesterday. Follow-through selling was seen in the Asia Pacific region, but most markets recovered from their lows, and although losses were still recorded, the downside momentum seemed broken. The same holds true for …
Overview: The US has ratcheted up pressure on China on several fronts and has sapped risk appetites ahead of the weekend. Equity markets are lower across the world. Even in India, where the central bank unexpectedly cut the repo rate 40 bp, shares fell 0.7%. It was Hong Kong’s 5.5% that led the region lower. …
US-China Escalation Sinks Hong Kong and Hits Risk Appetites Read More »
Under more normal circumstances, next week would be among the most important of the weeks of the year. The three largest central banks in the G7 meet, namely the Federal Reserve, the European Central Bank, and the Bank of Japan. In addition, the first estimate of the US and EMU Q1 GDP will be released. …
Overview: The ECB boosted this year’s asset purchases, lightened capital requirement rules, liberalized collateral requirements, suspended the annual stress tests, and provided for long-term loans at a rate as much as 25 bp below the negative 50 bp deposit rate. The market was nonplused. Later in the day, the Federal Reserve announced $2 trillion in new repo operations …
Overview: It appears after a few days of miscues, US officials struck the right chord, and the global capital markets seemed to stabilize shortly after the US session ended. President Trump’s press conference today is expected to spell out in greater detail relief for households and businesses. Asia Pacific equities rallied, led by a 3% …