Monday , February 17 2020
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Tag Archives: CAD

Tuesday’s Two Developments

There are two important developments today.  First, the recovery in the global equity markets is being challenged.  Second, the yen has strengthened across the board, and is now at its best levels against the dollar since last September's low.   The MSCI Asia Pacific Index extended Monday's recovery with another 0.5% gain.  However, looking closer, the momentum faltered.  The benchmark finished in the middle of the range, Japan's Topix, which had been up a little more...

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Equity Markets Find Firmer Footing, Dollar Softens

The most important development today has been the stability in the equity markets after last week's meltdown.  The recovery from new lows in the US before the weekend set the tone for today's moves.  Tokyo markets were on holiday, and the MSCI Asia Pacific Index excluding Japan snapped a seven-day slide with a nearly 0.6% gain.   China's markets led the rally with the CSI 300 gaining 1.3%.  There were reports suggesting that some Chinese officials offered informal...

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Can the Dollar Remain Firm if the Equity Bloodletting is Over?

The key development in the capital markets last week was the dramatic equity market losses, and as we will discuss below, the strong recovery in the US markets ahead of the weekend, which is the kind of climactic price action that marks an extreme.  Most major markets are off more than 10% from recent and often multi-year/record peaks.  A little more than 10% of the S&P 500 components were off more than 20%.  At the same time, the meltdown in equities did not fuel...

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Equity Sell-Off Extends to Asia, but More Muted in Europe

The 100-point slide in the S&P 500 and the 1000-point drop in the Dow Jones Industrials yesterday spurred more bloodletting in Asia.  The 1.8% drop in the MSCI Asia Pacific Index (for a 6.7% loss for the week) may conceal the magnitude of the regional losses.  At one point the CSI 300 of the large Chinese mainland shares was off more than 6% before closing off 4.3% (and 10% for the week).  The H-shares index was down 3.9% and 12% for the week.  The Nikkei was off 2.3%...

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Dollar Firms, While Equities Search for Stability

The swings in the equity markets are subsiding, bond yields are firm and the US dollar is extending its recovery.    Although US equities closed lower, the MSCI Asia Pacific Index snapped a four-day drop by posting a 0.25% gain.  However, the MSCI Emerging Markets Index is off nearly as much, though the range was modest.  European markets are also lower, and the range for the Dow Jones Stoxx 600 is the smallest in more than a week.   There have been several...

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Great Graphic: Major Currencies Year-to-Date

This Great Graphic was created on Bloomberg.  It shows five major currencies against the US dollar this year.  To avoid giving a misleading impression, the currencies are index to start this year at 100 and all the currencies are quoted in the European style of how many dollars the currency purchases.   These kinds of charts are not so much for trading, but they help illustrate the relative moves that can be masked by nominal price changes.   The green line is...

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Guns and Butter May Resolve US Legislative Logjam

After a volatile session in North America, the major equity indices closed higher.  In fact, the 1.75% rise in the S&P 500 was the best since November 2016.  Asian equities stabilized, and the MSCI Asia Pacific Index was able to eke out a small gain. The European markets are moving higher is also posting early gains and the Dow Jones Stoxx 600 is about 0.45%, which threatens to snap the seven-day slide.  However, the main challenge now is that the S&P 500 are...

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Dollar Consolidates while Equity Rout may be Ebbing

Asian equity markets were weighed down by losses in the US markets ahead of the weekend.  The MSCI Asia Pacific Index was off 1.4% after the 1.0% pre-weekend loss.  The Nikkei gapped lower and shed 2.5% and has fallen in eight of the past nine sessions.  The notable exception in Asia was the Shanghai Composite. The 0.75% was led by the financial sector amid talk that a report later this week will show a strong jump in yuan lending from banks, which are pushing in as the...

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Dollar Correction Spurred by Sell-Off in Stocks and Bonds

Marc to Market: Dollar Correction Spurred by Sell-Off in Stocks and Bonds Diese Website verwendet Cookies von Google, um ihre Dienste bereitzustellen, Anzeigen zu personalisieren und Zugriffe zu analysieren. Informationen darüber, wie du die Website verwendest, werden an Google weitergegeben. Durch die Nutzung dieser Website erklärst du dich damit einverstanden, dass sie Cookies verwendet.Weitere InformationenOK Loading

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Fed’s Hawkish Hold Keeps Dollar Consolidation Intact

The Yellen Fed ended on a high note.  She took over the reins the of Federal Reserve an implemented a strategic normalization process monetary policy, and helped engineer not only the first post-crisis rate hikes but also the beginning of unwinding its balance sheet.  Most reckon she has done an admirable job at the Federal Reserve, not only in terms of the economic performance on her watch but also the nimble execution policy.   Her final FOMC statement was not celebratory...

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