Overview: A word of optimism on a Brexit deal has sent sterling to its best level in two months. Corporate tax cuts sparked a more than 5% rally in Indian stocks as the week draws to a close. The MSCI Asia Pacific Index snapped a four-day losing streak to pare this week’s decline. Europe’s Dow Jones …
UK and India Provide Excitement Ahead of the Weekend Read More »
Overview: While investors keep a watchful eye on the dollar fix in China (a little firmer than projected) and tensions with the US, two other developments compete for attention. The Reserve Bank of New Zealand and the central banks of India and Thailand surprised the market with lower rates. The RBNZ cut by 50 bp, India …
Overview: The capital markets remain subdued. Many Asian equity markets eased after a strong two-day advance. European equities are slightly firmer. The S&P 500 closed at new five-month highs yesterday. Benchmark 10-year yields are mostly a little softer. Australian 10-year bond yield fell five basis points, and the discount to the US widened to a …
Third Vote on Withdrawal Bill Scuppered Until after EU Summit Read More »
Overview: The eventful week has begun off slowly. After Wall Street’s best week in four months underpinned Asian’ equities, where all the markets but Thailand, advanced, led by the nearly 2.5% rally in Shanghai. Note that New Zealand’s S&P/NZX 50 rose to new record highs. European bourses are firmer, and the Dow Jones Stoxx has …
Equities Advance, Dollar Slips, Key Events Awaited Read More »
Overview: Asian shares recovered from opening losses to finish mostly higher, with the Shanghai Composite up nearly 2% and India tacking on 1% after the election was called, starting April 11. European markets, led by energy, communication, and materials sectors, is up about 0.5% through midday. The S&P 500, which closed lower every day last week is …
Greenback Starts New Week Decidedly Mixed, with Brexit Anxiety Weighing on Sterling Read More »
The dollar rose against nearly all the currencies last week. Among the majors, the chief exception was the Japanese yen, which seemed to benefit from the equity weakness and the drop in yields, perhaps not really so much of the widely touted safe haven attribute, but the unwinding of funding positions. The main exception among …
The Dollar, Stocks, and Bonds are on the Move: What do the Charts Say? Read More »
Overview: As the North American session is about to begin, the markets await developments in the UK House of Commons where a vote is expected today on Prime Minister May’s proposal to hold votes on around March 12 on the Withdrawal Bill and no deal. However, perceptions of a reduced likelihood of a no-deal exit …
Dollar Trades Heavily, While Prospects of a Softer and Later Brexit Send Sterling Higher Read More »
Overview: Several of the equity benchmarks are flirting with six-week highs, including MSCI Asia Pacific Index and the Emerging Markets Index. The Dow Jones Stoxx 600 is trying to extend its advancing streak for a third week, something not done since July. The 350 level, which it is toying with, is similar to the 2600 …
Overview: Equity markets are stabilizing today as Asian and European markets shrug off the failure to get traction in the US yesterday. As everything and nothing was behind the dramatic sell-off in recent days, the same could be said about today’s recovery. Most accounts seem to be emphasizing two developments: a report indicating that despite the …
Market Fever is Burning Itself Out Ahead of the Weekend Read More »
Overview: The small gains in China’s Shanghai Composite and the yuan is helping sentiment today. News that Italy’s budget watchdog may reject the government’s fiscal plans has helped stabilize Italian assets initially, but renewed pressure quickly materialized. Most Asian equities retreated while Europe’s Dow Jones Stoxx 600 is struggling to snap a three-day slide. US shares …
A (Short) Reprieve For China while the Dollar Stays Firm Read More »