Saturday , October 31 2020
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Tag Archives: China

Investors Scared Before Halloween

 Overview:   Investors punished US tech giants for not delivering perfection as prices apparently had discounted, and the subsequent sell-off coupled with month-end dynamics has rocked global equities.  Asia Pacific bourses were a sea of red, led by a 2.5% decline in the tech-heavy South Korean Kospi, but most major markets were off more than 1%.  European equities are faring better, and are trying to snap a four-day decline.  US shares are lower, and the S&P 500 is about 1% lower in...

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Three From Xi (bonus 4th for CNY)

Physical cash vs. bank reserves. Quality growth vs. quantity. Xi Jinping vs. everyone not onboard with Xi Jinping. All three contests are actually very simple and straightforward – once you let go of the strong economy, money printing Federal Reserve nonsense. As to the last of the trio, Emperor Xi has been awfully keen this year to redo government flags.Communists are big into such symbolism. What isn’t mere symbol, at least not in the same way, is Chinese cash. Renminbi seems like it...

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Troubling Start of the Important Week

Overview: The surging virus ravaging large parts of Europe and the United States is fanning concerns over the economic implications as new social restrictions and curfews are announced in several countries.  US additional fiscal support remains elusive as aid for states and local governments remains a bone of contention.  Equities are under pressure. Most bourses in the Asia Pacific region fell, and a good part of last week's gains have been given back.  In Europe, the Dow Jones Stoxx 600 is...

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Commodity Tracker: 5 charts to watch this week

How is energy demand faring across different sectors and regions amid the evolving coronavirus pandemic? In this week’s Commodity Tracker, S&P Global Platts editors look at global aviation, Chinese fuels consumption, Brazilian power demand and European refining, as well as US LNG output. 1. Lift in air travel helps jet fuel but demand still far from normal   What’s happening? Global aviation continues to recover and global kerosene/jet fuel demand is tracking the pattern...

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Big Week Ahead

A two-week period is about to begin that could usher in a new phase for the global capital markets.  Most of the major central banks hold policy meetings, and the US and Europe report the preliminary estimates of Q3 GDP.  The US holds its national elections. A clearer sense of UK-EU trade talks ahead of the mid-November summit is likely.  China holds a plenary session for the central committee of the Communist Party to hammer out the new five-year plan (2021-2025).  In terms of...

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Greenback Stabilizes

Overview:  Two sets of talks have riveted attention, and both appeared to have made progress yesterday. After some words, the EC, recognizing the importance of UK sovereignty, UK Prime Minister Johnson signaled a resumption of trade talks. In the US, Pelosi and Mnuchin appear to be on the verge of a deal. The dollar is consolidating yesterday's losses. Equities are lower, and benchmark yields are little changed. Sterling, which jumped 1.8%, the most in seven months, stalled near $1.3180, is...

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Synchronized (still)

Their experience with COVID has been different in each case. Their response to the outbreak and pandemic hardly uniform. Mexico, for example, has reported 855,000 cases of the coronavirus from which more than 86,000 have died (or were found to have the disease when they died). Japan, on the other hand, just 93,000 cases with only 1,600 fatalities. We all know the US stats (it is, after all, the home stretch of this highly contentious quadrennial election season).Some lockdowns, not others....

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CNY + TIC = October 2020, or 2017?

The dominating feature during the last months and days of globally synchronized growth (Reflation #3, to you and me) wasn’t inflation nor growth. It was instead CNY. Taken at face value, the marvelous resurrection of China’s currency after 2014-16’s debacle (Euro$ #3, to you and me) did seem consistent with a global dollar system (eurodollar, to you and me) rebound.And there was a legitimate basis to believe this – up until September 2017. Before then, you could see as CNY rose the level of...

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Narrowly Mixed Markets as Clearer Direction Sought

Overview:  The capital markets lack a clear direction today.  This is reflected in narrowly mixed equities, bonds, and currencies.  The spreading contagion is giving rise to new economic concerns, among other things, and the UK-EU talks are struggling to resume, while Pelosi-Mnuchin talks in the US continue to drag.  In the Asia Pacific region, Japan, Taiwan, and Australian bourses led declines, while China, Honk Kong, South Korea, and India advanced.  Europe's Dow Jones Stoxx 600 is...

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Sterling Sparkles in Dollar Setback

Overview:  Investors have not let the surge of the virus or uncertainty over the UK-EU talks or US fiscal stimulus to stand in their way.  Sterling is leading the major currencies higher, returning to the $1.30 area, while global equities are trading higher.  In the Asia Pacific region, Chinese shares, and Thailand, where large-scale protests continue, bucked the move higher, led by more than 1% gain in Japan and Taiwan.  Europe's Dow Jones Stoxx 600 is pushing higher (~0.5%) for the second...

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