Overview: Escalating dramas may be behind the position adjustment today ahead of the US jobs data. The US and China feud expanded beyond Tiktok to WeChat, and efforts to tighten disclosure rules for Chinese companies listed in the US are nearing. The negotiations between the White House and the Democrats broke down, preventing or at …
Position Adjustment Dominates ahead of US/Canada Employment Reports Read More »
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: Market optimism over the possibility of a vaccine in early 2021 overshadowed the continued surge in US cases, where the 50k-a-day threshold of new cases has been breached. Following the NASDAQ close yesterday at record highs, global equities have advanced. Led by Hong Kong returning from yesterday’s holiday, Asia Pacific equities rallied. Most local …
Overview: The S&P 500 turning higher on the year was the last straw before an arguably overdue bout of profit-taking kicked-in and is the dominant feature today in the capital markets. It began slowly in the Asia Pacific region. Equities were mixed, and Australia’s 2.4% rally and the 1.6% gain in Hong Kong stood out. Europe’s …
Profit-Taking Gives Turn Around Tuesday Its Name Read More »
Overview: The modest loss in the S&P 500 and NASDAQ yesterday did not signal the end of the bull run. All the markets in the Asia Pacific region rallied, with the Hang Seng among the strongest with a 1.6% advance that brought the week’s gain to around 7.8%. South Korea’s Kospi was not far behind with …
Greenback Remains Soft Ahead of Employment Report, but Reversal Possible Read More »
Overview: After several days of aggressive risk-taking, investors are pausing ahead of the ECB meeting. Equities were mostly higher in the Asia Pacific region, though China was mixed, and Indian shares slipped. Europe’s Dow Jones Stoxx 600 is snapping a five-day advance, and US shares are trading with a heavier bias. The S&P 500 gapped higher …
Ironically, the pandemic and progress toward a vaccine will play second fiddle to more mundane concerns in the week ahead. Still, investors have shown that the most strained relationship between the US and China in 30 years (Tiananmen Square) is insufficient in the first instance to derail the recovery equity markets. Major benchmarks in the …
Overview: The S&P 500 closed near its session lows for the third day running yesterday but failed to deter the bulls in Asia-Pacific, where most markets rose by more than 1%. Taiwan, Korea, and Australia lagged a bit though closed higher. Europe’s Dow Jones Stoxx 600 is firm, and the modest gains (~0.5%) would be …
With the release of the US and EU GDP figures, Q1 is behind us. Amidst the great uncertainty, there is at least one thing that is clear. The current quarter is going to be worse, even if not for China. The good news is that with lockdowns gradually easing, the US and European Union, and parts …
Overview: The sharp sell-off in US equities and yields yesterday is spurring a mini-meltdown globally today. Many of the Asia Pacific markets, including Japan, Australia, Taiwan, and India, saw more than 2% drops, while most others fell more than 1%. The MSCI Asia Pacific Index snapped the four-day advance had lifted it about 2.8% coming into …