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Tag Archives: Italy

Italy’s Newly Unelected Prime Minister, Mario Draghi, Has Urgent Unfinished Business With the World’s Oldest Bank

In his former role as governor of the Bank of Italy, Draghi was partly responsible for Monte dei Paschi’s di Siena’s decline. Now he must reverse it.   Mario Draghi set a new precedent this week, becoming the first former ECB Chairman to head up a national government. And he did it without winning a single popular vote. The long-serving central banker and one-time managing director of Goldman Sachs International was handpicked by Italian president, Sergio Mattarella, to lead a so-called...

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Sterling Continues to Run Higher and US Winter Storm Gives Oil Another Boost

Overview:  US and Greater Chinese markets are closed today, but the markets are moving.  Equities are bid.  The Nikkei led the Asia Pacific region with a 2% gain and pushed above 30000 for the first time since 1990.  Korea's Kospi advanced 1.5%, and Australia's ASX tacked on 1%.  The Dow Jones Stoxx 600 gapped higher in Europe, led by energy, communications, and financials.  US futures are trading firmly, though the cash market will remain closed.  The US 10-year yield remains at 1.20%, but...

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Animal Spirits Start the Weekend Early

Overview:  Profit-taking weighs on equity markets, and the dollar is trading higher ahead of the weekend.  Most Asia Pacific markets are still closed for the holiday, but Victoria's snap lockdown dragged Australian shares lower.  Japan and Indian markets were narrowly mixed, but the selling pressure is clearer in Europe, where the Dow Jones Stoxx 600 has had a heavier bias.  US shares are also trading off, though coming into today, the S&P 500 was up about 0.75% for the week. US markets...

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Oil Set to Snap 8-day Advance while Consolidative Tone Emerges in FX

Overview: The S&P 500 and NASDAQ were unable to sustain the gap higher opening to new record levels and reversed lower and fell to new three-lows.  The settlements were just inside Tuesday ranges, though the Dow Industrials set a record close. Yet, there was spillover to equity trading in the Asia Pacific region and Europe today.  Most of the large Asia Pacific markets, including Japan, China, South Korea, and Taiwan, were closed.  Europe's Dow Jones Stoxx 600 is up about 0.35% in late...

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Position Squaring Weighs on the Dollar Ahead of the Jobs Report

Overview:  While equities continue to march higher, the dollar is softer amid position squaring ahead of the US jobs data.  Gold has stabilized after yesterday's shellacking.  Estimates for US nonfarm payrolls appear to have been creeping higher, encouraged by the ADP, PMI, and weekly initial jobless claims.  A robust report today could bolster the dollar, as the short-term trading community still seems short. After the S&P 500 and NASDAQ made new record highs yesterday, Asia Pacific...

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Super More Perfectly

Mario Draghi is back to save Italy by now running it. Like Janet Yellen resurfacing at the US Treasury, these people are thought of in the most positive terms simply because the public remains blissfully unaware of basic data. Not without good reason; the public had for decades come to count on central bankers (for all anyone knew) to keep the world on track and therefore people generally believe what central bankers tell them.And monetary policy independence has meant that officials get to...

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The Greenback Remains Resilient as the Bulls Drive Equities Higher

Overview: Equities have charged higher, and the greenback is mostly firmer.  News that Draghi may become Italy's next Prime Minister has boosted Italian bonds.  The PBOC unexpectedly drained liquidity, and this may have deterred buying of Chinese stocks, a notable exception in the regional rally.  It stopped last week's four-day slide with a three-day advance, so far.  Europe's Dow Jones Stoxx 600 gapped higher for the second session and is up about 0.7% in around midday. The S&P 500...

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Animal Spirits Return and the Euro Probes Two-Month Lows

Overview: The recovery from last week's equity slide continues today.  In Asia Pacific region, Taiwan and India led with more than 2% gains.  Stepped fiscal efforts, the establishment of a bad bank, and privatization efforts are bolstering Indian shares.  Europe's Dow Jones Stoxx 600 gapped higher today and has recouped around half what it lost last week.  US shares are trading higher, and a gap higher opening is possible.  Benchmark 10-year yields are firm, with the US Treasury near 1.10%. ...

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Subdued Activity as New Incentives Awaited

Overview:  After rallying strongly to start the year, Asia Pacific equities, led by the high-flying Hang Seng, sold-off, led by Tencent.  Most markets in the region were off at least 1%.  Australia and India escaped the profit-taking due to holidays.  Europe's Dow Jones Stoxx 600 is faring better and looks poised to snap a two-day fall, led by materials, financials, information technology, and consumer staples.  US shares are trading a little heavier.  The US earnings season picks up today,...

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The ‘Cs’ Both Stand For ‘Clown’; YCC ‘Lite’ Hits Europe (allegedly)

The ECB wants everyone to know that it is in control, and therefore has everything under control. Through an almost certainly carefully placed leak, European central bank officials have let it be known current monetary policy is practicing a kind of yield curve control. Not just the usual QE in terms of bond buying, but tailoring specific parameters within the program in order to achieve what policymakers are saying adds up to more complete financial command. They just aren’t ready to call...

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