Overview: The new week has begun slowly with Singapore and Tokyo markets closed for national holidays. The MSCI Asia Pacific Index rose 2% last week and edged higher today, led by 1.5%-1.7% rallies in South Korea and Australia. Hong Kong was a notable exception and eased around 0.6%. Europe’s Dow Jones Stoxx 600 also advanced …
Overview: The drop in US yields to new lows amid paralysis in Washington, except apparently over a lip-syncing app’s threat to US national security, sent the dollar back to its lows after a modest recovery in early North American trading yesterday. The greenback remains under pressure today, falling against most of the world’s currencies. The …
Corrective Pressures in the FX Market Prove Short-Lived Read More »
March was when the markets froze up. Many, including myself, thought closing the markets was possible as has been done during other big shocks and without jeopardizing the reputation of exchanges or officials. Central banks and governments around the world began responding in earnest to the impact of economic shutdowns the market disruptions. The MSCI All …
Will PMIs Show Economies Hit Bottom? Are US-China Tensions Rising Again? Read More »
Overview: There are two big stories today. The first is the large scale protests in Iran after the government admits to accidentally shooting down the commercial airliner amid the fog of war. The market impact seems minimal but fueling speculation that this, coupled with the economic hardship related to the US embargo, could topple the regime. …
Dismal Data Undercuts Sterling and Boosts Chances of a Rate Cut Read More »
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: Global equities paid no mind to the losses seen in the US before the weekend. After falling for three weeks, Asian equities rallied, led by a recovery in technology. The Hang Seng set the pace with a 1.7% gain, but Taiwan, Korea, and Singapore markets were up over 1%. The two exceptions were Chinese mainland …
Greenback is Softer but the Market may be Getting Ahead of Itself Read More »
The US dollar has steadied after pulling back in recent days, but the downside correction does not appear complete, and month-end flows are still a risk to picking a dollar-bottom. The Australian dollar is the weakest of the majors. The main drag is paradoxically Westpac, one of Australia’s largest banks, raised the variable rate mortgage …
Dollar Finds Support, but Downside Correction May Not be Over Read More »