Monday , October 14 2019
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Tag Archives: AUD

Dreadful EMU PMI and US Machinations Rival Brexit for Attention

Overview:  The S&P 500 recovered from the post-FOMC reversal to close a new 5-month high yesterday, led by technology.  Financials were the only main sector to retreat.  The large equity markets in Asia, Japan, China, Australia, South Korea, and Taiwan all advanced.  Europe's Dow Jones Stoxx 600 reversed its initial gains and is nursing a small loss on the week.  US shares were little changed but are being dragged down by the reversal in Europe.    Benchmark 10-year...

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Dovish Fed Sends Global Yields Lower, but Little Succor for Stocks

Overview:  The dovishness of the Federal Reserve sent ripples through the capital markets.  US equities reversed initial gains, but Asia Pacific equities edged higher, though Japanese markets were closed for a national holiday.  European shares are struggling, as financials and consumer discretionary lead the 0.3% push lower.  US shares are also trading with a heavier bias.  Yields have come off and the US 10-year yield that had finished last week a little below 2.60% is...

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Third Vote on Withdrawal Bill Scuppered Until after EU Summit

Overview:  The capital markets remain subdued.  Many Asian equity markets eased after a strong two-day advance.  European equities are slightly firmer.  The S&P 500 closed at new five-month highs yesterday.  Benchmark 10-year yields are mostly a little softer.  Australian 10-year bond yield fell five basis points, and the discount to the US widened to a new high since the early 1980s.  The minutes from the Reserve Bank of Australia underscore the importance of this week's...

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Equities Advance, Dollar Slips, Key Events Awaited

Overview: The eventful week has begun off slowly.  After Wall Street's best week in four months underpinned Asian' equities, where all the markets but Thailand, advanced, led by the nearly 2.5% rally in Shanghai.  Note that New Zealand's S&P/NZX 50 rose to new record highs.  European bourses are firmer, and the Dow Jones Stoxx has edged to a new high for the year, with the help of materials and energy.  Benchmark 10-year yields are mostly firmer, though the US yield...

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Dollar Correction may Continue

The US dollar fell against all the major currencies except the Japanese yen in the week following the disappointing job growth in February.  The Norwegian krone was the strongest of the majors, appreciating 2.8% against the dollar and nearly 2% against the euro amid speculation the central bank will be the first, and maybe only major central bank to hike rates this year.  The Norges Bank is expected to hike its deposit rate to 1.00% from 0.75% due to the rise in price...

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Euro and Yen Volatility Slips to New Five-Year Lows on the Ides of March

Overview:  The capital markets are calm ahead of the weekend.  Outside of Australia and Thailand, Asia Pacific equities advanced, while European shares are mostly little changed. The regional benchmarks, like the S&P 500 have recouped last week's losses.  Benchmark 10-year yields are little changed on the day, leaving the US 10-year yield virtually unchanged on the week near 2.62%. The benchmark Japanese government bond yield has hovered around minus five basis points,...

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Another UK Vote, but No Closure

Overview:  The Brexit drama continues to play out, and the Withdrawal Bill that has been twice defeated is ironically not dead yet.  Today's vote, in fact, is predicated on another "meaningful vote" before seeking an extension.  Sterling remains firm near yesterday's highs, which were the best levels since last June. Poor Chinese data was a drag on Asian equities, where the Shanghai Composite fell by more than 1% for the second consecutive session.  European shares are...

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Still Waiting for Brexit Climax

Overview:  The Brexit drama continues to command attention. A vote on leaving without an agreement will be held today, and if that fails, there will be a vote tomorrow on an extension.  Meanwhile, the first increase in headline US CPI in four months failed to impress as the year-over-year pace fell to 18-month lows.  Today's import prices are part of the inflation picture, especially the non-oil component, which may give insight into consumer goods inflation.  Equity...

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Wave of Optimism Sweeps through the Capital Markets

Overview:  Last minute statements meant to clarify what many MPs find to be the most odious part of the Withdrawal Bill, the backstop for the Irish border is goosed global equity markets even though it does not seem as if the Withdrawal Bill has changed one iota.  And after the big rally in US shares yesterday, there might have been follow-through buying in any case today.  Asian markets did not disappoint. Nearly all of the major bourses were up over one percent, and...

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Greenback Starts New Week Decidedly Mixed, with Brexit Anxiety Weighing on Sterling

Overview:  Asian shares recovered from opening losses to finish mostly higher, with the Shanghai Composite up nearly 2% and India tacking on 1% after the election was called, starting April 11.  European markets, led by energy, communication, and materials sectors, is up about 0.5% through midday. The S&P 500, which closed lower every day last week is looking a little firmer.  Benchmark yields are slightly higher, with the US 10-year yield up nearly three basis points...

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