Overview: Equities are mostly lower, while bonds have risen. The dollar is trading in narrow ranges and mixed against the G10 currencies and emerging markets. Most Asian bourses were lower. The Nikkei (though not the Topix) and Hong Kong were the chief exceptions. Europe’s Stoxx 600 is off for the second consecutive day, in what looks …
Equities Retreat while the Dollar is Confined to Narrow Ranges Read More »
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: The capital markets are decidedly mixed today as investors are pulled between rising infections, heightened tensions between the US and China, lack of progress on new US stimulus, and technical forces as the new month begins. Asia Pacific equities were mixed though the Nikkei gained more than 2%, aided by the yen’s slump ahead of …
Stronger EMU PMIs Fail to Recharge the Euro’s Upside Momentum Read More »
Overview: A wave of profit-taking is seen through most of the capital markets today, with the exception of the bond market, where yields continue to trend lower. The US 10-year is now yielding 55 bp, a new low since early March, and the five-year yield set a new record low near 23 bp. European yields …
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 …
After a lull in important economic data and major central bank meetings, the calendar picks up next week. The highlights include the US and EMU’s first estimate of Q2 GDP, the FOMC meeting, and China’s July PMI. Investors may be informed by these developments, but they are unlikely to change the investment climate, which is …
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: 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: Record fatalities in a few US states, coupled with new travel restrictions in Italy and Australia, have given markets a pause ahead of the weekend. News that two state-backed funds in China took profits snapped the eight-day advance in Shanghai at the same time as there is an attempt to rein in the use …
Surge in Coronavirus Spooks Investors as China Takes Profits Read More »
Overview: The gains in US equities yesterday carried into Asia Pacific trading today, but the European investors did not get the memo. The Dow Jones Stoxx 600 is succumbing to selling pressure and giving back yesterday’s gain. Energy and financials are the biggest drags, while real estate and information technology sectors are firm. All the …