Overview: The leaked US decision to lift the currency manipulator designation on China was the latest fodder fueling the new record highs in the S&P 500. The risk-taking appetite helped extend the rally in the MSCI Asia Pacific Index for the fourth consecutive session. Europe’s Dow Jones Stoxx 600 is little changed and trying to …
China was a Currency Manipulator for a Few Months Read More »
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: The anticipated growth implications of the heightened tensions between the world’s two largest economies is dominating activity at the start of the new week. These considerations that drove the 2.6% drop in the S&P 500 before the weekend is carrying over into today’s activity. The dollar was driven below JPY105 support, while global equities …
Overview: Powell speech at Jackson Hole stands before the weekend. Equities in Asia and Europe are finishing the week on a firm tone. Most markets in the Asia Pacific region closed higher today, and the MSCI Asia Pacific Index snapped a four-week slide. European bourses are edging higher, and the Dow Jones Stoxx 600 is …
Market has Second Thoughts on Magnitude of Fed Cuts Ahead of Powell Read More »
Overview: Soft data in Asia and the continued decline in the yuan (six days and counting) prevented Asian equities from following the US lead from yesterday when the S&P 500 advanced by 0.8%. European shares are paring yesterday’s 1.2% advance despite an unexpected gain in the EMU flash PMI. US shares are little changed in …
Tick Up in EMU PMI Does Little, Waiting for Powell Read More »
Overview: Global equities and bonds are firmer in quiet turnover, and the dollar is narrowing mixed in narrow ranges. The big events of the week, the eurozone flash PMI and Powell’s speech at Jackson Hole still lie ahead. The MSCI Asia Pacific Index rose for the third consecutive session, led by Korea and Australia’s 1%+ …
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: The global capital markets are ending the tumultuous week calmly, but it is far from clear that is will hold long. Next week’s flash PMIs have potential to disappoint, and there is risk of new escalation in the US-China trade conflict as the PRC threatens to take action to countermeasures to the new US …
Markets Take Collective Breath Ahead of the Weekend Read More »
Overview: It took some time for investors to recognize that the scaling back of US tariff plans was not part of a de-escalation agreement. There was an explicit acknowledgment by US Commerce Secretary Ross that there was no quid pro quo. The US tariff split was more about the US than an overture to China. …
Overview: The US cut its list of Chinese goods that will be hit with a 10% tariff at the start of next month by a little roe than half, delaying the others until the mid-December. This spurred a near-euphoric response by market participants throughout the capital markets. However, as the news was digested, it did …