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Home / Tag Archives: $CNY

Tag Archives: $CNY

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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The Dollar is Sold through CNY7.0 as Chinese Equities Continue to Rally

Overview:   Investors continue to clamor into risk assets.  Led by Chinese shares, the MSCI Asia Pacific Index pushed higher for the third session this week to new five-month highs.  Europe's Dow Jones Stoxx 600 is trying to snap a two-day decline with the help of better than expected revenues for its largest tech company.  US shares are little changed after yesterday's 0.8% rally in the S&P 500 and new record high close in the NASDAQ.  Bonds are sidelined.  Asia Pacific yields...

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Fade the Dollar Gains

Overview: The S&P 500 rallied 1.6% yesterday to extend the streak to a fifth consecutive session, and the longest of the year and completed the negation of a bearish technical pattern.  However, the main feature today is a wave of profit-taking on risk assets.  Most equity markets moved lower in the Asia Pacific region. Chinese markets were a notable exception. The Shanghai edged about 0.35% higher, while the Shenzhen tacked on 1.7%.  European shares are struggling, and the Dow...

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Cool Video: Forces Driving the Dollar and Downplaying Claims Sterling is an Emerging Market Currency

From my remote location in Ocean Grove (next to Asbury Park of Bruce Springstein fame), I joined Martin Soong and Sri Jegarajah for a brief interview as the Asia session was about to begin the new week. A three-minute clip of the interview can be found here. I suggest that there are two main drivers of the markets now.  There is the fear of the new surge in Covid cases and the economic implications, on the one hand, which discourages risk-taking.  On the other hand, the vast sums of...

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How Do You Say (Way) Off-balance Sheet In Chinese?

Where central banks are concerned, it’s not conspiracy theory so much as the term “off-balance sheet.” There’s a reason Enron kicked off that mass-migration into the footnotes. For monetary officials, there’s the choice to be like Montagu Norman and what he thought of good practice at central banks. Silence.For years, the Chinese have tried it the other way. Big Mama typically left huge muddy footprints wherever its clumsy feet might land. It certainly was that way back in 2015 when Euro$...

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Are Risk Appetites Satiated, or Simply Taking the Day Off?

Overview: Many observers are attributing the sell-off in risk assets today to the Federal Reserve's pessimistic outlook, yet, as we note below, the Fed's median GDP forecast this year is better than many international agency forecasts, including the OECD's that was issued yesterday.  Moreover, some near-term trends were already in place.  Although the MSCI Asia Pacific Index snapped its longest advance in three years today, Europe's Dow Jones Stoxx 600 is lower for the fourth consecutive...

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Monday Blues: Consolidation Threatened

Overview: The MSCI Asia Pacific Index rose for a sixth consecutive session. Japan, Taiwan, Singapore, and Indonesian markets advanced more than 1%. European bourses are mixed, with the peripheral shares doing better than the core, leaving the Dow Jones Stoxx 600 about 0.5% lower near midday after surging 2.5% ahead the weekend. US shares are firm, as is the 10-year yields, hovering near 92 bp. Core 10-year benchmark yields are a softer in Europe, while peripheral yields are edging...

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Greenback Remains Soft Ahead of Employment Report, but Reversal Possible

Overview: The modest loss in the S&P 500 and NASDAQ yesterday did not signal the end of the bull run.  All the markets in the Asia Pacific region rallied, with the Hang Seng among the strongest with a 1.6% advance that brought the week's gain to around 7.8%.  South Korea's Kospi was not far behind with a weekly gain of 7.5%.  In the past two weeks, the MSCI Asia Pacific Index is up nearly 10%.  European shares are higher by more than 1% in the morning turnover.  The Dow Jones Stoxx...

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Risk Taking Pauses Ahead of the ECB

Overview: After several days of aggressive risk-taking, investors are pausing ahead of the ECB meeting.  Equities were mostly higher in the Asia Pacific region, though China was mixed, and Indian shares slipped.  Europe's Dow Jones Stoxx 600 is snapping a five-day advance, and US shares are trading with a heavier bias. The S&P 500 gapped higher yesterday, and that gap (~3081-3099) offers technical support. Benchmark 10-year bond yields are firmer. The US 10-year yield is rising for...

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Dollar is Sold and ROW is bought

Overview: Two recent trends continue.  Equities are moving higher, and the dollar remains heavy.  Equity markets in the Asia Pacific region rose at least one percent, and South Korea, Singapore, and Malaysia rallied 2-3%.  Europe's Dow Jones Stoxx 600 is up more than 1% for the third consecutive session.  US shares are trading higher and are poised to extend their recent run.  Bond yields are backing up.  Australia, New Zealand, and South Korea saw 5-6 bp increases, while European bonds...

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