Saturday , October 31 2020
Home / Tag Archives: Currency Movement

Tag Archives: Currency Movement

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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Markets Continue to Struggle

 Overview:   The spreading virus that is shutting down large parts of Europe, while the US is reluctant to return to lockdowns and refuses to have a nationwide requirement for masks in public hit risk assets yesterday.  The S&P posted its largest decline in four months yesterday (~3.5%), and the selling carried into the Asia Pacific region.  Most bourses fell, led by the 1.6% slide in Australia and Taiwan's 1% fall.  Chinese markets were more resilient and posted modest gains.  Around...

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Animal Spirits Called in Sick

Overview:  Sickened by the surging virus, animal spirits are bed-ridden today. Several European countries are experiencing the most fatalities and illnesses in several months, and policymakers are responded with national restrictions. In 32 US states, hospitalizations have surged by over 10% in the past week.  In the Asia Pacific region, China, South Korea, and the Australian market were the islands green on red equity screens that reflect the decline in nearly every place else.  In Europe,...

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Markets Take Collective Breath and Beijing Tweaks Fixing Mechanism

Overview:  The surging pandemic sapped the risk-taking appetites as some investors hunker down for what could be a volatile period ahead.  The S&P 500 lost nearly 3% at its lows before rebounding 1% in late dealings.   However, the US's fiscal stimulus remains highly likely even if not immediate, and more intensive trade talks between the UK and EU have already begun. The spread of the virus also means policymakers must be vigilant in their response, and many countries will need to...

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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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Disappointing PMIs may Sharpen ECB’s Dovishness but the Euro Remains Firm

Overview:  The US dollar is finishing the week on a soft note, falling against all the major currencies.  On the week, it is off by at least one percent against most of them, with the Australian and Canadian dollars and Japanese yen, laggards, rising 0.5%-0.75%.  Emerging market currencies are largely participating, as well.  The JP Morgan Emerging Market Currency Index up almost 1% this week.  Turkey, where the central bank disappointed participants by not hiking the one-week repo rate...

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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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Dollar Slumps as Yields Rise

 Overview:  The dollar is falling against most of the world's currencies today, even as long-term yields rise to the most in four months and drags global yields higher.  The US 10-year yield is pushing above 0.80%, and the 30-year is above 1.60%.  Many are linking the backup in yields to prospects of additional fiscal support.  European benchmark 10-year yields are 2-4 bp higher.  China's bond yield slipped marginally.  Sterling and the Norwegian krone are leading the majors higher.  The...

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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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