After the US and UK holidays on Monday, there are four highlights in the week ahead. First, the Reserve Bank of Australia’s meeting will receive more attention after the Reserve Bank of New Zealand signaled the likelihood of a rate hike in the second half of next year. Second, the G7 finance ministers may agree to …
After the US and UK holidays on Monday, there are four highlights in the week ahead. First, the Reserve Bank of Australia’s meeting will receive more attention after the Reserve Bank of New Zealand signaled the likelihood of a rate hike in the second half of next year. Second, the G7 finance ministers may agree to …
Overview: The equity rally is stalling ahead of the weekend. Most markets in the Asia Pacific region eased, though China and Australia advanced. Japanese shares were mixed. The Nikkei, though advanced for the fourth consecutive session, while the Topis slipped. European stocks are off more, and once again, the 200-day moving averaging is capping the Dow …
Overview: Asia Pacific equities rallied after the US shares rallied with the Nasdaq reaching record highs after it and the S&P 500 gapped higher yesterday. Japan and Hong Kong led the rally with more than 2% gains, while the Shanghai Composite lagged with about a 0.1% gain. However, the momentum did not carry into Europe, …
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 S&P 500 rallied 1.6% yesterday to extend the streak to a fifth consecutive session, and the longest of the year and completed the negation of a bearish technical pattern. However, the main feature today is a wave of profit-taking on risk assets. Most equity markets moved lower in the Asia Pacific region. Chinese markets …
Overview: A new daily high number of contagions globally has been reported, but the risk-appetites have been stoked. Chinese stocks have been on a tear. The Shanghai Composite rallied 5.7% today to bring the five-day advance to 13.6%. Most other regional markets, including Hong Kong, rallied as well (3.8%). Australia was the main exception, and it …
New Record Number of Covid Cases Doesn’t Curtail Appetite for Risk Read More »
Risk-appetites and, by implication, the capital markets entered a new phase around June 5 when the US reported an unexpectedly strong jump in the May non-farm payrolls. The risk assets had been rallying since mid-March in anticipation of an economic recovery and fueled by the massive liquidity provided by central banks and the spending plans …
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 S&P 500 recovered yesterday after dipping trading below the 20-day moving average for the first time in a month. The key area is the gap between the April 30 low (~2892.5) and the May 1 high (~2869). Oil reversed higher as well. June crude was off nearly 9% in the US morning and closed …