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Tag Archives: UK

Enguard Lagarde

Overview: The rally in US shares yesterday, ostensibly fueled by strong earnings reports, is helping to encourage risk appetites today.  The MSCI Asia Pacific Index is posting its biggest gain in around two weeks, though Japan's markets are closed today and tomorrow.  The Dow Jones Stoxx 600 is building on yesterday's rally, and with today's ~0.8% gain, it is up on the week.  US equities are also trading with a firmer bias.  The 10-year US yield that spiked to nearly 1.125% on Tuesday is...

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Did Japan Deliver a Fait Accompli to the US?

Overview:  The biggest rally in US equities in four months has helped stabilize global shares today.  In the Asia Pacific region, Japan, China, and Australian markets advanced.  Led by information technology and consumer discretionary sectors, Europe's Dow Jones Stoxx 600 is up around 1.35% near the middle of the session.  US equity futures are firm, though the NASDAQ is lagging.  The US 10-year yield that briefly dipped below 1.13% yesterday is firm today, around 1.25%, while European bond...

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Delta Variant Saps Risk Taking Appetites, Sending the Greenback Higher even as Rates Fall

Overview: Concerns that the Delta mutation will slow or even reverse the recovery efforts appear to be sapping risk-taking appetites.  Equities are under pressure.  Nearly all the markets in the Asia Pacific region and Europe are lower. The MSCI Asia Pacific is paring last week's 1.4% advance, while the Dow Jones Stoxx 600 in Europe is off for the fourth consecutive session at six-week lows.  Only the consumer staples and health care sectors are posting small gains.  The S&P 500 futures...

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BOJ Tweaks Forecasts

Overview: The markets head into the weekend with little fanfare.  Most large equity markets in the Asia Pacific region slipped earlier today. Hong Kong, which will be exempt from the need to secure mainland's cybersecurity approval for foreign IPOs, and Australia were notable exceptions. European bourses are edging higher, while US futures are oscillating around unchanged levels.  After closing below 1.30%, the US 10-year yield is around 1.33%.  European yields are little changed, but...

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Strong Gains in US CPI and PPI Don’t Stop the Bond Market Rally

Overview: Strong inflation prints this week have not prevented the long-term US interest rates from tumbling.  The 10-year yield is about 10 bp lower than where it closed on Tuesday after the lackluster 30-year auction.  The 30-year yield itself is 11 bp lower.   Fed Chair Powell did not break new ground yesterday and insisted that the bar of "significant further progress" has not been met to begin reducing its bond purchases.   A possible deal in OPEC saw a sharp drop in crude oil prices,...

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RBNZ Moves Ahead of the Queue, Will the Bank of Canada Maintain its Place?

Overview: The Reserve Bank of New Zealand jumped to the front of the queue of central banks adjusting monetary policy by announcing the end of its long-term asset purchases.   New Zealand's s 10-year benchmark yield jumped seven basis points, and the Kiwi is up almost 1%, to lead the move against the greenback today.  Sterling is up around a quarter of a percentage point after it reported a larger than expected rise in CPI.  Most of the other major currencies, but the Swiss franc and Swedish...

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Headline US CPI may Decline for the First Time in a Year

Overview: New record highs in the US S&P 500 and NASDAQ coupled with China allowing Tencent to acquire a search engine helped lift Asia Pacific equities.  It is the first back-to-back by MSCI's regional index for more than two weeks.  Australia's market was a notable exception.  The lockdown in Sydney is weighed on new confidence measures and prompts economists to cut growth forecasts for Q3.  European equities are softer.  Weakness in health care and utilities is offsetting the gains in...

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Turn Around Tuesday or Dollar Rally Resumes?

Overview:  Firming long-term US yields have lent the dollar support after trading heavily yesterday.  The greenback is around 0.15%-0.50% higher against the major currencies.  The Japanese yen and Canadian dollar are among the more resilient, and the Australian dollar and sterling among the heaviest.  Emerging market currencies are mostly lower, except the South Korean won and Turkish lira.  Even the Hungarian forint, where the central bank is widely expected to be the first EU country to...

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Markets Quiet Ahead of Triple Witching

Overview: After some dramatic moves over in the immediate post-Fed period, the markets have quieted. The kind of volatility that is sometimes associated with triple witching expirations in the US may have already taken place.  Asia Pacific equities were mixed, but the MSCI benchmark finished with its second consecutive weekly decline.  Europe's Dow Jones 600 ended its nine-day run with a small loss yesterday and additional slippage so far today. Still, near midday, it is holding on to about...

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Will the Fed Talk the Talk?

Overview: With the outcome of the FOMC meeting awaited, the dollar is narrowly mixed in quiet turnover.  The Scandis are the weakest (~-0.3%) among the majors, while the Antipodeans are the strongest (~+0.25%). JP Morgan's Emerging Market Currency Index is snapping a three-day decline.  Equity markets are mixed, with the MSCI Asia Pacific Index succumbing to profit-taking after a four-day rally.  Europe's Dow Jones Stoxx 600 is edging higher for the ninth consecutive session, setting new...

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