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 »
With the dollar continuing to trend lower, it was time to check again with Ben Lichtenstein at TD Ameritrade. It was a privilege to join him today to discuss the drivers. I sketched out my views that the greenback’s two legs, growth and interest rate differentials have been knocked from under it. There is a …
Overview: The NASDAQ rallied 1% yesterday to record highs as the Dow Industrials struggled, and the S&P 500 was able to eke out a small gain. The coattails were short, and the strength of the yen may have contributed to a 0.2% loss of the Nikkei. Still, its 6.2% advance this month is the best …
Canada Shrugs Off Loss of Morneau and Gold Reclaims $2000 Threshold Read More »
Overview: The capital markets are looking for direction. Asia Pacific equity markets were mixed, with gains in China, Hong Kong, and Taiwan countering losses in Japan, South Korea, and Australia. European and US shares are trading slightly firmer. Benchmark bond yields are mostly 1-2 basis points lower in Europe, and the US 10-year yield is …
Gold sold off, and US yields rose as we anticipated, but this did little for the greenback, which fell against all the majors but the Japanese yen and New Zealand dollar. Although the US dollar fell to new six-month lows against the Canadian dollar and rose to three-week highs against the yen, it remained mostly …
Will Sideways Movement Alleviate the Overextended Greenback? Read More »
Economists are often lampooned because of their inability to forecast changes in the business cycle. But the pandemic helped them overcome the challenge this time. A record contraction in Q2 was anticipated before in March. Similarly, economists generally expected the recovery after the March-April body blow. However, after an initial surge, some high-frequency data point …
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: The poor price action on Tuesday in the S&P 500 was shrugged off, and new highs for the recovery were made as the record high nears. The dollar, on the other hand, seemed to find plenty of sellers against most of the major currencies. The yen was a notable exception. The dollar traded above JPY107 …
Overview: The biggest rise in the US 10-year yield in a couple of months, as the record quarterly refunding, got underway may have helped stabilize the dollar after an earlier decline. The S&P 500 threatened to extend its advance for the eighth consecutive session yesterday, but a late sell-off stopped it cold after scaling to new …
Dollar was Sold in Asia and Europe, but is Poised to Bounce in North America 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 »