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Tag Archives: South Korea

Powerful Momentum is Still Evident in the Foreign Exchange Market

Overview: The powerful momentum moves in the capital markets continues unabated by escalating US-China tensions and continued spread of the virus. Asia Pacific equities were mixed. Tokyo was closed for a holiday, but several other large markets in the region, like China, South Korea, and Taiwan markets slipped lower, while Hong Kong, Australia, and India advanced.  Helped by autos and food and beverages, Europe's Dow Jones Stoxx 600 is recouping around half of yesterday's losses.  US...

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Europe and Tech Lift Risk Appetites

Overview: The continued domination of the tech sector and Europe's tentative agreement are lifting equities and risk assets more generally today.  Australia and Hong Kong's 2.3%-2.5% rally led Asia Pacific markets.  The Dow Jones Stoxx 600 is higher for a third session and above its 200-day moving average for the first time since February.  The Dax is turning positive on the year.  The S&P 500 did so yesterday, though nearly 2/3 (320 companies) remain lower on the year. The S&P...

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Risk Appetites Firm, but the Greenback is Mixed

Overview:  Equities began the week on a firm note in the Asia Pacific region.  The Nikkei gained more than 2%, and the profit-taking seen in China ahead of the weekend was a one-day phenomenon.  The Shanghai Composite rose 1.8%, and the Shenzhen Composite surged 3.5%.  Taiwan and South Korea markets also rallied more than 1%.  European and US stocks enjoy more modest gains of around 0.5%-0.6%.  Benchmark 10-year yields are mostly 2-3 bp higher, though the US 10-year Treasury yield is a...

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Dollar Thumped Ahead of US Jobs Report

Overview:  Market optimism over the possibility of a vaccine in early 2021 overshadowed the continued surge in US cases, where the 50k-a-day threshold of new cases has been breached.  Following the NASDAQ close yesterday at record highs, global equities have advanced.  Led by Hong Kong returning from yesterday's holiday, Asia Pacific equities rallied.  Most local markets rose by more than 1%, though Tokyo and Taiwan lagged.  Europe's Dow Jones Stoxx 600 is up over 1% to extend its rally...

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When Primary is Secondary

Overview:  The gains in US equities yesterday carried into Asia Pacific trading today, but the European investors did not get the memo. The Dow Jones Stoxx 600 is succumbing to selling pressure and giving back yesterday's gain.  Energy and financials are the biggest drags, while real estate and information technology sectors are firm.  All the markets had rallied in the Asia Pacific region, with the Nikkei and Australian equities leading with around 1.3% gains.  US shares are trading...

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Dollar Begins Week on Back Foot

Overview: Investors begin the new week, perhaps slowed a bit by the weekend developments and the growth of new infections.  Equities are mixed.  The MSCI Asia Pacific Index snapped a four-day advance, though India bucked the regional trend and gained 1%.  Europe's Dow Jones Stoxx 600 is recovering from an early dip to four-day lows.  US shares are trading higher after the S&P 500 closed below 3100 ahead of the weekend after reaching 3155. That may provide a cap, while it takes a...

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Quiet Start to New Week

Overview: The new week begins slowly in the capital markets. Many markets in the Asia Pacific region, including Japan, Hong Kong, and Australia, gained over 1%, but European and US shares are heavier. Benchmarks off all three regions rallied by 3.4%-3.5% over the past two weeks. Bond markets are also little changed, with the US 10-year benchmark just below 70 bp ahead of this week's record refunding. Core European yields are slightly higher, while the peripheral premiums have edged in....

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Heavy Dollar amid Month-End Pressure

Overview: The dollar is lower across the board as dealers attribute the selling to month-end pressures ahead of the FOMC today and ECB tomorrow and long-holiday weekend for many. Japan's Golden Week holiday has already begun. Despite the loss in US equities yesterday, despite the higher opening, it has not spilled over, as Alphabet earnings helped lift sentiment. The MSCI Asia Pacific Index rose for a third session as is approaching the halfway mark of this year's range. Europe's Dow...

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Investors Take PMI Crash in Stride

Overview: Investors have remained fairly calm in the face of flash April PMI crashes and an increase of virus cases in several European countries. Most equity markets in the Asia Pacific region rose, with the notable exceptions of China and Australia.  The Nikkei rose for the first time this week, and its 1.5% gain led the region. Europe's Dow Jone Stoxx 600 is little changed as it continues to move sideways in a 320-340 range. US shares are slightly firmer.  In the bond market, the...

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Oil Drilled Below Zero, Equity Rally Stalls, Greenback Advances

Overview:  Oil's wild ride has been joined by two other developments that are keeping investors off-balance. First, reports suggest that North Korea's Kim Jong-Un maybe in critical condition after surgery. He apparently was absent from last week's events celebrating his grandfather. The concern is about a potential power vacuum and the command and control of North Korea's weapons. Second, in a tweet late yesterday, US President Trump said he would sign an executive order suspending...

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