Friday , November 22 2019
Home / Tag Archives: Currency Movements

Tag Archives: Currency Movements

Realism Fights Back After Hope Dominated Yesterday

Overview:  Hope triumphed over realism yesterday, and realism is fighting back toward.  Asia Pacific markets, however, traded on the echo from the recovery in North America on Monday.  The MSCI Asia Pacific recouped part of yesterday's drop, led by Chinese markets.  Hong Kong was the main exception.  The enthusiasm faded by the European morning and the Dow Jones Stoxx is threating a fourth consecutive losing session, dragged down by communication, consumer staples, and health care...

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Trump’s “Call from China” helps Markets Recover

Overview:  The anticipated growth implications of the heightened tensions between the world's two largest economies is dominating activity at the start of the new week. These considerations that drove the 2.6% drop in the S&P 500 before the weekend is carrying over into today's activity.  The dollar was driven below JPY105 support, while global equities and emerging markets slumped.  Gold was lifted to a six-year high to flirt with $1555 area. However, it is remarkable how quickly...

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Market has Second Thoughts on Magnitude of Fed Cuts Ahead of Powell

Overview:  Powell speech at Jackson Hole stands before the weekend.  Equities in Asia and Europe are finishing the week on a firm tone.  Most markets in the Asia Pacific region closed higher today, and the MSCI Asia Pacific Index snapped a four-week slide.  European bourses are edging higher, and the Dow Jones Stoxx 600 is poised to end its three-week air pocket.  US shares are higher in European trading and barring a reversal in the North American session, the S&P 500 will finish...

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Tick Up in EMU PMI Does Little, Waiting for Powell

Overview:  Soft data in Asia and the continued decline in the yuan (six days and counting) prevented Asian equities from following the US lead from yesterday when the S&P 500 advanced by 0.8%.  European shares are paring yesterday's 1.2% advance despite an unexpected gain in the EMU flash PMI.  US shares are little changed in the European morning.  Benchmark 10-year bond yields in Europe are 1-2 bp higher, and though the political crisis in Italy has not been resolved, Italian bonds...

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Marking Time Ahead of PMI and Powell

Overview:  Global equities and bonds are firmer in quiet turnover, and the dollar is narrowing mixed in narrow ranges.  The big events of the week, the eurozone flash PMI and Powell's speech at Jackson Hole still lie ahead.  The MSCI Asia Pacific Index rose for the third consecutive session, led by Korea and Australia's 1%+ gains.  Europe's Dow Jones Stoxx 600 is firm and testing two-week highs. US equities are also trying to extend yesterday's gain.  The rise in US yields yesterday...

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China’s Rate Reform Helps Markets Extend End of Last Week Recovery

Overview: China announced some changes in its interest rate framework that is expected to lead to lower rates.  This helped lift equity markets, which were already recovering at the end of last week from the earlier drubbing.  Chinese and Hong Kong shares led the regional rally with 2-3% gains.  The Nikkei gapped higher for the third time in six sessions, and the first two were followed by lower gaps.  European stocks are higher, and the Dow Jones Stoxx 600 is trying to string the...

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Markets Take Collective Breath Ahead of the Weekend

Overview:  The global capital markets are ending the tumultuous week calmly, but it is far from clear that is will hold long.  Next week's flash PMIs have potential to disappoint, and there is risk of new escalation in the US-China trade conflict as the PRC threatens to take action to countermeasures to the new US tariffs. Most equity markets are higher, but the gains pare the week's losses but extend the losing streak.  The MSCI Asia Pacific's has fallen nearly 7% of the four-week...

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Animal Spirits Lick Wounds

Overview:  It took some time for investors to recognize that the scaling back of US tariff plans was not part of a de-escalation agreement. There was an explicit acknowledgment by US Commerce Secretary Ross that there was no quid pro quo. The US tariff split was more about the US than an overture to China.  In fact, as China did in September when the US sanctioned it for buying weapons from Russia, this week it refused a request from the US for a port call in Hong Kong. This, coupled...

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Markets Paring Exaggerated Response to US Blink

Overview:  The US cut its list of Chinese goods that will be hit with a 10% tariff at the start of next month by a little roe than half, delaying the others until the mid-December.  This spurred a near-euphoric response by market participants throughout the capital markets.  However, as the news was digested, it did not seem as much of a game-changer as it may have initially.  Disappointing Chinese data also seemed to encourage risk-off.   Asia Pacific equities had a muted response to...

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Investors Remain on Edge

Overview:  The confrontation in Hong Kong and the fallout from the Argentine primary over the weekend join concerns the conflict between the two largest economies and slower growth to force the animal spirits into hibernation.  Global equities remain under pressure.  Japan's Topix joined several other markets in the region to have given up its year-to-date gain.  The MSCI Emerging Markets equity index is not from doing the same.  European shares are faring better, and with today's...

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