Economists are often lampooned because of their inability to forecast changes in the business cycle. But the pandemic helped them overcome the challenge this time. A record contraction in Q2 was anticipated before in March. Similarly, economists generally expected the recovery after the March-April body blow. However, after an initial surge, some high-frequency data point …
Overview: Global equity markets are stabilizing today, and the dollar is once again on its back foot. Chinese markets led a mixed regional performance with a 2%-3% gain, while South Korea and Hong Kong markets also advancing. The strength of the yen appears to weigh on Japanese shares. The Nikkei fell for the fourth consecutive …
Overview: The main development in the capital markets today is the firmer dollar against nearly all the major and emerging market currencies. Among the majors, the New Zealand dollar and Swedish krona are the heaviest (~-0.4%), while the Swiss franc and yen are marginally lower. In the emerging market space, the liquid and accessible currencies, like …
Dollar Bounces, Gold Slips, while Equities Hold Their Own Read More »
Overview: The US dollar’s dramatic sell-off continues. It is off against nearly all currencies. Among the majors, the Swedish krona and Japanese yen are leading the money, and the euro surged through $1.17. Emerging market currencies are fully participating, with the JP Morgan Emerging Market Currency Index posting its fifth gain in six sessions. The greenback’s …
Overview: The powerful momentum moves in the capital markets continues unabated by escalating US-China tensions and continued spread of the virus. Asia Pacific equities were mixed. Tokyo was closed for a holiday, but several other large markets in the region, like China, South Korea, and Taiwan markets slipped lower, while Hong Kong, Australia, and India advanced. …
Powerful Momentum is Still Evident in the Foreign Exchange Market Read More »
Overview: The continued domination of the tech sector and Europe’s tentative agreement are lifting equities and risk assets more generally today. Australia and Hong Kong’s 2.3%-2.5% rally led Asia Pacific markets. The Dow Jones Stoxx 600 is higher for a third session and above its 200-day moving average for the first time since February. The Dax …
Overview: While there are signs that Europe has reached a compromise on the grant/loan issue, the spillover into the markets is quite limited. China, with Shanghai’s 3.1% gain, led a few markets in the Asia Pacific region higher, including Japan and India. Most markets were lower, and Europe’s Dow Jones Stoxx 600 is a fractionally firmer, …
Overview: Chinese stocks stabilized after yesterday’s sharp fall as did most Asia Pacific equity markets, but Tokyo fell today. European shares are little changed, though the Dow Jones Stoxx 600 is still poised to hold on to modest gains for the third consecutive week. US shares have a firmer bias, and the S&P 500 is up …
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 »
Overview: Turn around Tuesday began yesterday with a key reversal in the high-flying NASDAQ. It soared to new record highs before selling off and settling below the previous low. The S&P 500 saw new four-month highs and then sold-off and ended on its lows with a loss of nearly 1% on the session. Asia Pacific shares …