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Tag Archives: Canada

The Dollar Softens Ahead of the FOMC

Overview:  The capital markets are relatively quiet so far today as the FOMC meeting gets underway.  Equity markets in the Asia Pacific region, but Japan and Australia advanced, and the regional benchmark rose for the fourth consecutive session.  European stocks are a little firmer.  The three-day advance has lifted the Dow Jones Stoxx 600 by about 1.0%.  US shares are trading higher, and the S&P 500 is poised to gap higher.  Benchmark 10-year yields 1-2 bp higher in Europe, and the US...

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Stocks Extend Gains, while Yesterday’s Dollar Recovery Stalls

Overview: Soaring US stocks, optimism about a vaccine, and the affirmation of the US-China trade agreement are buoying global equities today.  The MSCI Asia Pacific Index is near seven-month highs and was led today by more than 1% gains in the Nikkei and Kospi.  Europe's Dow Jones Stoxx 600 is around 0.5% firmer to approach the 200-day moving average, which has capped the upside.  US stocks are firmer, and the S&P 500 is set to gap higher again at the opening.  Bond yields 2-4 bp...

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PMIs Shake Investor Confidence

Overview: The second disappointing Fed manufacturing survey report and an unexpected rise in weekly jobless claims helped reverse the disappointment over the FOMC minutes.   Bonds and stocks rallied--not on good macroeconomic news, but the opposite, which underscores the likelihood of more support for longer. News that Pfizer's vaccine may be ready for regulator review in a couple of months also lifted spirits.  However, disappointing eurozone preliminary PMI sapped the enthusiasm. ...

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US Equities Outperform but Does Little for the Heavy Greenback

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 Hong Kong fell, while Japan, Australia, and South Korea advanced.  In Europe, the Dow Jones Stoxx 600 remains confined to last Friday's ranges and...

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Canada Shrugs Off Loss of Morneau and Gold Reclaims $2000 Threshold

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 among the G10.  Chinese equities posted small gains, but amid rising infections and anticipating new lockdown measures, South Korea's Kospi took it on the chin, falling nearly 2.5%.  New US...

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Canadian aluminum tariffs likely déjà vu moment for some

Settling in with a favorite film can be comforting in times like these. There’s something reassuring about seeing the same familiar scenes play out on screen. I still laugh at Rodney Dangerfield’s obnoxious tycoon, Al Czervik, in “Caddyshack” or the scene in “Office Space” where disgruntled co-workers take out their frustrations on an unreliable fax machine. Those are classic comedies, though. A repeat viewing of a mob drama like “Goodfellas” can generate the same anxious feelings and...

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Position Adjustment Dominates ahead of US/Canada Employment Reports

Overview: Escalating dramas may be behind the position adjustment today ahead of the US jobs data.  The US and China feud expanded beyond Tiktok to WeChat, and efforts to tighten disclosure rules for Chinese companies listed in the US are nearing.  The negotiations between the White House and the Democrats broke down, preventing or at least delaying additional stimulus.  The US reimposed 10% tariffs on unprocessed aluminum from Canada, while Ottawa threatened dollar-for-dollar...

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Pang of Uncertainty Spurs Profit-Taking

Overview:  The optimism among investors appears to have evaporated in the face of new US-Chinese tensions, possible delays in the next US fiscal stimulus, and new record virus infections in Australia and Hong Kong.   US stocks had pared early gains yesterday, and the high-flying NASDAQ finished lower after setting new record highs.  Hong Kong (-2.25%) and Australia (-1.3%) led the regional declines, though China eked out some modest gains, helped by the energy sector.  The MSCI Asia...

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Surge in Coronavirus Spooks Investors as China Takes Profits

Overview: Record fatalities in a few US states, coupled with new travel restrictions in Italy and Australia, have given markets a pause ahead of the weekend.  News that two state-backed funds in China took profits snapped the eight-day advance in Shanghai at the same time as there is an attempt to rein in the use of margin.  Many of the largest markets in the Asia Pacific region fell by 1-2%, This pared the weekly gains in most markets, but sent the Nikkei and Kospi lower for the week. ...

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New Record Number of Covid Cases Doesn’t Curtail Appetite for Risk

Overview: A new daily high number of contagions globally has been reported, but the risk-appetites have been stoked.  Chinese stocks have been on a tear.  The Shanghai Composite rallied 5.7% today to bring the five-day advance to 13.6%.  Most other regional markets, including Hong Kong, rallied as well (3.8%).  Australia was the main exception, and it pulled back by 0.7%.  It is still up a solid 3.4% over the past five sessions. European shares are advancing.  The Dow Jones Stoxx 600 is...

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