The pandemic has served to synchronize business cycles. In the first instance, it was a body blow to economies. After the first shock, it was a question of containing the outbreaks, ensuring the financial markets and bank functions have normalized to facility the economic recovery. It appears March and April were the worst and that …
Overview: The S&P 500 turning higher on the year was the last straw before an arguably overdue bout of profit-taking kicked-in and is the dominant feature today in the capital markets. It began slowly in the Asia Pacific region. Equities were mixed, and Australia’s 2.4% rally and the 1.6% gain in Hong Kong stood out. Europe’s …
Profit-Taking Gives Turn Around Tuesday Its Name Read More »
Overview: Investors seem to be in want of new drivers, leaving the capital markets with little fresh direction. While Japanese and China equities were little changed, several markets in the region, including Australia, Hong Kong, Taiwan, and India, were off more than 1%. European bourses are mostly higher after the Dow Jones Stoxx 600 slipped 0.4% …
Overview: Chinese officials took the US tariff hike quietly last week but struck back today. The PBOC fixed the dollar higher (CNY6.90), which it has not done, and will halt imports of US agriculture. The dollar shot through CNY7.0 to finish the mainland session a little above CNY7.03 and CNH7.07 for the offshore yuan. This has …
Overview: Lifted by the re-opening of Chinese markets after the week-long Lunar New Year holiday, global equities are trading firmer. Outside of Japanese markets that were closed, the large markets in Asia–China, Taiwan, South Korea, and Hong Kong advanced. European bourses are following suit, and the Dow Jones Stoxx 600 is up more than three-quarters …
A basic but essential judgment short-term participants must make is whether a particular market is trending or rangebound. It informs the technical tools one uses and the tactics one employs. Often one’s timeframe shapes one’s answer. The dollar has either approached or gone through what previously seemed like the lower end of a range. Recognizing …
Overview: The biggest US equity advance since Q1 has helped lift global markets today. The MSCI Asia Pacific Index rose for the fourth session, and nearly all the bourses in the region rallied with the notable exception of China and Hong Kong. Almost all the sectors in Europe are rallying but energy and real estate. …
Overview: Global equities paid no mind to the losses seen in the US before the weekend. After falling for three weeks, Asian equities rallied, led by a recovery in technology. The Hang Seng set the pace with a 1.7% gain, but Taiwan, Korea, and Singapore markets were up over 1%. The two exceptions were Chinese mainland …
Greenback is Softer but the Market may be Getting Ahead of Itself Read More »
Norges Bank: As widely expected, Norway hiked rate for the first time since 2011. Paradoxically, it was seen as a dovish hike. The rate path was lower than many expected. The next hike is seen in Q1 2019. The krone was sold, and it is the only major currency that is not gaining against the …
The US dollar is beginning the new week on a soft note, as China threatens not to accept the invitation for trade talks in Washington if the US imposes new tariffs on $200 bln of its goods, which the Wall Street Journal reports could come as early as today. Meanwhile, the MSCI Emerging Markets Index …
Dollar Slips, though Emerging Markets Trade Heavily Read More »