Overview: Global capital markets are relatively calm as investors gird for drama. The Bank of England reports its assessment of the impact of Brexit and the stress tests a little before Fed Chair Powell speaks at midday in NY. The G20 meeting begins Friday, and several bilateral meetings are taking the spotlight from the larger …
Overview: Yesterday’s 3% drop in the NASDAQ is setting the tone for today. The US stock market advance had been led by a narrow group of equities, and those have come under strong pressure amid slower consumer demand and stricter export control. Asian equities were a sea of red today. Chinese markets led the sell-off with …
Overview: There is one main story today, and that is the resumption of the slide in equities. It is having a ripple effect through the capital markets. Bond yields are tumbling. Gold is firm. The dollar is narrowly mixed, though the yen stands out with almost a 0.5% gain. Most of the large equity markets in …
The first set of US tariffs aims specifically at China were implemented, and the retaliatory actions were also launched. The tariffs cover hundreds of goods, though the initial amount of trade covered is relatively small at $34 bln. Tariffs on another $16 bln are in the pipeline and could be put into effect in a …
While the pundits are talking trade wars, Chinese officials are taking the latest US provocations in stride. Pressure on China’s trade practices are not new. The US has been complaining about intellectual property violations since Bill Clinton was President. China’s trade practices have also raised the ire or US and Europe, which has resulted in …
After a poor start in Asia, equities recovered. The MSCI Asia Pacific initially extended last week’s losses and fell to its lowest level since February 12 before recovering to finish near its highs, 0.4% above last week’s close. European markets followed suit. They did not have to take out last week’s lows. The Dow Jones …
Sparked by fears that the BOJ took a step toward the monetary exit by reducing the amount of long-term bonds it is buying, there is an apparent scramble to cover previously sold yen positions. Th dollar finished last week near JPY113.00. It fell to about JPY112.35 yesterday, near the 50% retracement of the greenback’s bounce …
The year began with US President-elect threatening to cite China as a currency manipulator and to impose a tariff on Chinese imports. Neither step was taken. The US withdrew from the Trans-Pacific Partnership, which had been negotiated for several years and was an important economic component of the US “pivot to Asia.” Into the summer …
The US dollar is broadly firmer. The rise in US yields yesterday has seen the greenback extend its recovery against the yen. It briefly pushed through JPY112.40, after dipping below JPY111.00 at the start of the week, for the first time since mid-September. Since the end of last week, been capped at the 200-day moving …
US Dollar Comes Back Bid, but Brexit Hopes Underpin Sterling Read More »
The euro is edging higher to trade at its best levels since the middle of last month. It is drawing closer to the $1.1880 area, which if overcome, could point to return to the year’s high seen in early September near $1.2100. There is a combination of factors lifting the euro. The recent data, including …