Overview: The S&P 500 and NASDAQ set new all-time highs yesterday, but the continued outperformance of US equities have failed to lend the dollar much support. It was sold to new lows for the year yesterday against the euro, sterling, the Swedish krona, and the Australian dollar. Asia Pacific equities were mixed. China, Taiwan, and …
US Equities Outperform but Does Little for the Heavy Greenback Read More »
Overview: The capital markets are looking for direction. Asia Pacific equity markets were mixed, with gains in China, Hong Kong, and Taiwan countering losses in Japan, South Korea, and Australia. European and US shares are trading slightly firmer. Benchmark bond yields are mostly 1-2 basis points lower in Europe, and the US 10-year yield is …
Overview: Better than expected reports from Apple, Facebook, Amazon, and Alphabet have failed to revive the dollar’s fortunes, and the greenback was sold to a new low against the euro, yen, sterling, and Australian dollar before staging a bit of a recovery. The dollar is stretched, and if the improvement is sustained through North America …
Greenback Ending Miserable Month with a Spark of Resilience Read More »
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: Profit-taking, perhaps spurred by disappointing retail sales figures, sent Chinese equity markets down by 4.5%-5.2% today, the most since early February. It appears to be triggering a broader setback in equities today. The Hang Seng fell 2%, and most other markets in the region were off less than 1%. India was bucking the trend …
Equities Slide and the Greenback Bounces After China’s GDP and Before the ECB 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 …
Overview: There is a nervous calm in the capital markets today after a late sell-off in US equities yesterday on the back of concerns about new virus cases in some states and revelations in a new book by former National Security Adviser Bolton. Asia Pacific equities were mixed, though, of note, China, Hong Kong, Taiwan, …
Markets Finding it Difficult to Rebuild Bullish Momentum Read More »
Overview: Many observers are attributing the sell-off in risk assets today to the Federal Reserve’s pessimistic outlook, yet, as we note below, the Fed’s median GDP forecast this year is better than many international agency forecasts, including the OECD’s that was issued yesterday. Moreover, some near-term trends were already in place. Although the MSCI Asia Pacific …
Are Risk Appetites Satiated, or Simply Taking the Day Off? Read More »
Overview: The S&P 500 gapped higher yesterday, above the recent ceiling and above the 200-day moving average for the first time since early March. The momentum faltered, and it finished below the opening level and near session lows. The spill-over into today’s activity has been minor. The heightened tensions weighed on China and Hong Kong markets, …
China and Hong Kong Pressures are Having Limited Knock-on Effects Read More »
Overview: Reports suggesting that some of the hot spots for the virus contagion appear to be leveling off, and this is helping underpin risk appetites today. The curve seems to be flattening in Italy, Spain, and France. In the US, there are some early signs of leveling off in NY, and now, the number of …