Category Archive: 4.) Marc to Market

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FX Daily, March 29: Markets Look for Direction after Large Block Trade and Before Key Data

2021-03-29

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2021-03-29

The large block trade (~$20 bln) before the weekend, apparently from a family office, continued to have ripple effects today, but the MSCI Asia Pacific Index barely noticed.  It extended its pre-weekend rally of 1.3%, and only South Korea and Australia fell among the major markets.

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FX Daily, March 18: Dovish Fed but Yields Rise, Helping the Greenback Recover from Yesterday’s Slide

2021-03-18

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2021-03-18

Overview: Asia Pacific equities mostly advanced after the US benchmarks recovered following the dovish FOMC. Australia, New Zealand, and India did not participate in today's gains. European bourses edged higher, but US shares are struggling, and the NASDAQ futures are off nearly 1%, threatening to end the three-day rally. 

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FX Daily, March 16: Equities Firm, but Markets Tread Gingerly

2021-03-16

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2021-03-16

Overview: Yesterday's new record highs in the S&P 500 and Dow Jones Industrial helped set the tone for today's advance in the Asia Pacific region and Europe. The MSCI Asia Pacific Index snapped a two-day decline, with other major markets rising today. 

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FX Daily, March 15: Big Week Begins Quietly

2021-03-15

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2021-03-15

The capital markets are beginning a new and busy week in a non-committal fashion.  Equities are mixed.  Except for Japan, Hong Kong, and Australia, most markets in the Asia Pacific region were lower, led Chinese and Indian shares. 

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FX Daily, March 11: Risk Extends Gains Ahead of the ECB

2021-03-11

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2021-03-11

Overview: Even though the NASDAQ closed lower yesterday and the reception of the 10-year Treasury auction did not excite, market participants are growing more confident.  Led by China, the major markets in the Asia Pacific region rallied.  The Shanghai Composite's 2.35% gain not only snaps a five-session slide but is the largest rally since last October.

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FX Daily, March 10: Markets are not Yet Convinced that Yesterday’s Move Signaled a Trend Change

2021-03-10

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2021-03-10

Fear that yesterday's reversals represent little more than one-day wonders is contributing to the overall consolidative tone today. Most equity markets in the Asia Pacific region and Europe edged higher. China's stocks tumbled yesterday, despite reports of official assistance, were mixed with the Shanghai Composite posting small gain and Shenzhen a small loss.

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FX Daily, March 9: Turn Around Tuesday Strikes

2021-03-09

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2021-03-09

It is not clear the trigger, but risk-taking appetites rebounded smartly today after the NASDAQ completed a more than 10% pullback from its highs yesterday.  Ironically, the Dow Jones Industrials set new record highs yesterday too.  Most equity markets in the Asia Pacific region rallied.  The notable exceptions were South Korea and China. 

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FX Daily, March 8: Greenback Trades Higher in Asia before Momentum Stalls in Europe

2021-03-08

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2021-03-08

Overview: The attack on Saudi Arabia's largest crude terminal reverberated through the capital markets, where sentiment was already fragile, despite the lack of disruption.   Brent rose to nearly $71.40, and April WTI to almost $68 extended their gains for the fourth consecutive session before being fully unwound.

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FX Daily, March 4: OPEC+ and Powell are Awaited

2021-03-04

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2021-03-04

Overview:  Equities are under pressure following yesterday's sharp losses in the US.  The MSCI Asia Pacific Index suffered its biggest decline of the week today as Japanese, Chinese, and Hong Kong benchmarks slid by more than 2%.  The Dow Jones Stoxx 600 Index in Europe is buckling under the pressure and is posting its first decline of the week. 

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FX Daily, March 2: The Dollar Finds Better Footing

2021-03-02

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2021-03-02

Overview: A warning from China's top banking regulator about the frothiness of foreign markets appeared to blunt the knock-on effect of yesterday's largest rise in the S&P 500 since last June (~2.4%) and weighed on global equities.  The large markets in the Asia Pacific region but India and South Korea fell.

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FX Daily, March 1: Animal Spirits Roar Like a Lion to Start the New Month

2021-03-01

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2021-03-01

Overview:  Equities and bonds jump back.  Most Asia Pacific markets advanced 1.5-2.5% after the regional MSCI benchmark dropped 3.65% before the weekend and 5.3% last week.  The recovery in European stocks was even more impressive. 

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FX Daily, February 26: Fed Hike Ideas Give the Beleaguered Greenback Support

2021-02-26

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2021-02-26

A poor seven-year note auction and ideas that the first Fed hike can come as early as the end of next year spurred a steep sell-off in bonds and equities. Technical factors like the triggering of stops losses, large selling in the futures market, which some also link to hedging of mortgage exposure (convexity hedging), also play a role.

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FX Daily, February 24: Equities Try to Stabilize and Low Short-Term Rates Help Keep the Dollar on the Defensive

2021-02-24

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2021-02-24

Overview:  The sharp recovery in US shares yesterday that saw the S&P 500 snap a five-day slide failed to carry into Asia Pacific trading earlier today.  All the markets fell save India and Singapore.  Losses were led by a 3% drop in Hong Kong as the first increase in the stamp duty (financial transaction tax) since 1993 was announced (0.13% from 0.10%). 

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FX Daily, February 23: Dramatic Market Adjustment Continues

2021-02-23

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2021-02-23

Overview:  Rising rates continue to spur a rotation and retreat in stocks.  Yesterday the NASDAQ sold-off by nearly 2.5% while the Dow Industrials eked out a minor gain.  Equities are mostly higher in the Asia Pacific region while Japanese markets were on holiday. 

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FX Daily, February 22: Stocks Wilt under Pressure from Rising Yields

2021-02-22

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2021-02-22

Higher interest rates, driven by inflation expectations, is forcing an adjustment to equity markets.  The S&P 500 is poised to gap lower today following slides in the Asia Pacific region and Europe. Japanese and Taiwanese indices advanced by steep losses were seen in China, Hong Kong, and India.

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FX Daily, February 19: Equities Stabilizing While the Greenback Remains Under Pressure

2021-02-19

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2021-02-19

Overview: The bond and equity markets are trying to stabilize ahead of the weekend.  The dollar remains under pressure.  In the Asia Pacific region, Hong Kong, China, and South Korean markets advanced, but most markets could not overcome the profit-taking pressures.

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FX Daily, February 18: Markets Chill

2021-02-18

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2021-02-18

The bout of profit-taking in equities continued today, and most markets in Asia Pacific and Europe are lower. China's markets re-opened but struggled to sustain early gains. However, the Shanghai Composite rose by about 0.5%, and a smaller increase was recorded in Taiwan and an even smaller gain in Australia.

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FX Daily, February 17: Follow-Through Dollar Buying after Yesterday’s Reversal Tests the Bears

2021-02-17

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2021-02-17

Overview:  After reversing higher yesterday, the US dollar sees follow-through gains today, leaving the euro around a cent lower from yesterday's highs. Sterling's surge is also being tempered. Most emerging market currencies are lower as well. 

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FX Daily, February 16: Greenback Remains Heavy

2021-02-16

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2021-02-16

The equity rally appears undeterred by the rise in interest rates or the surge in oil prices.  Led by Tokyo and Hong Kong, Asia Pacific equities advanced.  China, Taiwan, and Vietnam markets remain closed. After gapping higher yesterday and extended the gains in early turnover today, the Dow Jones Stoxx 600 is consolidating.

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FX Daily, February 15: Sterling Continues to Run Higher and US Winter Storm Gives Oil Another Boost

2021-02-15

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2021-02-15

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.

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