Overview: The Australian dollar powered to marginal news highs for the year as the move against the US dollar continued yesterday. The euro stopped a few hundredths of a cent below the high seen at the end of last week. However, neither sustained the upside momentum and have come back offered today. The greenback is …
There is no reason to expect the investment climate is going to change next week. The key drivers remain the same. The resurgence being seen in the virus is posing a speed bump in the re-opening and recovery process. The work of monetary and fiscal policy is not over. The low real and nominal interest …
Data and the Virus may Determine the Magnitude of the Dollar’s Bounce Read More »
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 rally in risk assets in North America yesterday is failing to carry over into today’s activity. Asia Pacific equities were mixed. Korea and Indonesia led the advances with more than 1% gain. China and Taiwan also gained. Japan and Hong Kong. Europe’s Dow Jone’s Stoxx 600 is giving back yesterday’s gains (~1.3%) plus some …
Overview: Investors have not yet completely shaken off the angst that saw equities slide last week. All equity markets in the Asia Pacific region, but Japan, edged higher today, including China, India, and South Korea, where political/military tensions are elevated. Europe followed suit, and the Dow Jones Stoxx 600 is firm near yesterday’s highs. It …
Overview: Liquidity trumps everything else. US equities shrugged off the national guard being called into action in nearly a third of US states, and the S&P 500 closed yesterday at nearly three-month highs. Asia Pacific markets followed suit. Most markets in the region rose by more than 1%. The notable exceptions were Australia and China, where …
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 »
Overview: Another late sell-off in US shares, this one perhaps related to the sobering assessment by the leading medical adviser for the Trump Administration about the risks of opening too early, failed to deter investors in the Asia Pacific region. Although Japanese shares slipped, most other markets rose. India led the way (~2%) after a fiscal …
Will Powell have any more Luck Pushing against Negative Rate Expectations in the US? Read More »
Overview: Global equities are beginning the new week on an upbeat note. All the markets in the Asia Pacific region rallied, led by more than 2% gains in the Nikkei and Taiwan. European bourses are higher. All the industry groups are participating and financials and consumer discretionary leading the way. The Dow Jones Stoxx 600 has …
Equities Rally and the Dollar Eases to Start the Week Read More »
Overview: Officials appear to have persuaded investors that they have put into place measures that will cushion the economic blow and ensure that the financial system continues to function. After seemingly goading officials into action, investors are choosing not to resist. Moreover, there is a recognition that many programs are scalable. Risk assets dipped initially …