Next week is important. Two G7 central banks meet and at least half a dozen emerging market central banks. There is a European Summit and perhaps a political effort to reinvigorate the UK-EU trade talks, which seem to be crashing on the shoals of stubbornness. The ECB offers its most generous long-term targeted loan that is …
Overview: Equities continue to recover even as deep economic contractions are reported. Yesterday, the US said Q1 GDP contracted at an annualized pace of 4.8%, while the eurozone reported today that output fell 3.8% quarter-over-quarter in Q1. Hong Kong and South Korea were closed, but the rest of the Asia Pacific bourses rallied strongly with several, …
Overview: The global capital markets have begun the new week on a cautious tone as investors seek to assess the latest news on the new coronavirus. Nearly all the markets in Asia fell but China. European bourses are lower as well, with the Dow Jones Stoxx 600 off about 0.3%. US shares are soft but little …
Quiet Start to the New Week in which Politics may Dominate Read More »
The prospect of a third trade truce between the US and China helped underpin the optimism that extended the rally in equities. Bond yields continued to back-up after dropping precipitously in August, led by a more than 30 bp increase in the US yield benchmark. The Dollar Index fell for the second consecutive week, something …
A Federal Reserve meeting always draws market interest, as investors are on guard for policy signals. However, the statement from this week’s meeting is likely to be devoid of new information. It may tweak its economic assessment as the recent data warrants, including the continued improvement of the labor market, and better capital investment. Inflation, it …
Looking Through the FOMC Meeting as it Looks Past Poor Q1 GDP Read More »
The US dollar has found steadier footing today after trading heavily yesterday. There are two main themes. The first is sterling’s heavy tone. After closing the North American session 0.5% higher yesterday to snap a five-day losing streak, it has come under new pressure today. The ostensible trigger was the RICS house price balance, which …
Sterling Struggles to Find a Bid, While RBNZ Can’t Knock Kiwi Down Read More »
The robust US jobs report at the end of last week had arrested the down draft seen the previous week in response to the disappointing Q2 GDP report. The mostly sideways movement has given way to a broader pullback today. The greenback is heavier against all the major and most emerging market currencies today. There …
FX Consolidation Resolved in Favor of Weaker US Dollar Read More »