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: A rotation of sorts seems to be unfolding. The euro posted its second back-to-back loss in over a month. The Canadian dollar, which has been an under-performer among the major currencies for the past six weeks, gained, while most fell. The Dow Industrials and S&P 500 rose, the high flying NASDAQ fell for the …
Gold and the Dollar are Sold while Stocks March Higher Read More »
Overview: Turn around Tuesday began yesterday with a key reversal in the high-flying NASDAQ. It soared to new record highs before selling off and settling below the previous low. The S&P 500 saw new four-month highs and then sold-off and ended on its lows with a loss of nearly 1% on the session. Asia Pacific shares …
Overview: The S&P 500’s longest advance this year was stopped seemingly as concern that the flare-up in the virus will slow the recovery. The sell-off in airlines and hotels helped spur a broader bout of profit-taking. Most Asia Pacific bourses advanced, led by the continued rally in Hong Kong and China. Europe’s Dow Jones Stoxx …
It is sometimes said that two emotions drive the capital markets, fear and greed. That may cast it in moralistic terms, but there does seem to be two attractors that the pendulum of market sentiment is presently swinging between. On the one hand, central banks have eased monetary policy through conventional and unconventional measures. Governments …
Overview: After early indecision, investors ramped the demand for risk assets, encouraged perhaps by indications that the Trump Administration is going to support at least another trillion-stimulus package. The NASDAQ rallied to new record highs, and the dollar got thumped across the board. However, in early Asia activity, Trump adviser Navarro seemed to have told Fox …
Sometimes it is easier to have a sense of what will not happen, rather than a view of what will happen. No Negative Rates in the US: Nearly every Federal Reserve official has argued against the deployment of negative interest rates in the US. It is also not completely clear that the same Congressional authorization …
Overview: Hopes for a vaccine and a German-French proposal to break the logjam at the EU for a joint recovery effort helped propel equities higher yesterday. There was strong follow-through in the Asia Pacific region, where most markets advanced by more than 1% today. However, the bloom came off the rose, so to speak, in Europe. …
Overview: The constructive mood among investors in April has given way to new concerns as May gets underway. Japan and China are still on holiday, but most of the other markets in Asia fell, led by 4.5%-5.5% declines in Hong Kong and India, and more than 2% in most other local markets. Australia bucked the trend …
Overview: Three deals need to be struck. First, the Eurogroup of finance ministers needs to reach an agreement of proposals for joint action to the heads of state. Second, oil producers need to cut output if prices are to stabilize. Third, the US Congress needs to strike a deal to provide more funding. Investor seems …