Tag Archive: Brexit

FX Daily, November 25: Risk Appetites Stall Ahead of the US Thanksgiving Holiday

The global equity rally appears to be stalling after the US markets rallied strongly yesterday. Chinese, Taiwan, Korean, and Indian indices fell, and the MSCI Asia Pacific Index appears to have posted only its second loss this month. European shares are narrowly mixed, leaving the Dow Jones Stoxx 600 little changed.

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FX Daily, November 24: Diverging PMIs Fail to Give the Dollar Lasting Support

Overview: The contrast between the eurozone and US preliminary PMI readings caught the short-term market leaning the wrong way, and the dollar snapped back after extending its recent losses.  However, today the US dollar is back on its heels and returning to yesterday's lows against most major currencies.

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FX Daily, November 20: US Treasury-Fed Dispute Spurs Handwringing but Immediate Market Impact was Exaggerated

Overview:  News that the stimulus talks between the House Democrats and Senate Republicans was the excuse traders were looking for to extend the US equity gains yesterday, but shortly after the close, confirmation that Treasury was not going to agree to extend several Fed facilities sent stocks reeling. 

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FX Daily, November 19: Surging Virus Saps Risk Appetites

Overview: News that the New York City was closing the schools to contain the virus sent stocks reeling in late North American dealings yesterday and spurred some profit-taking in the Asia Pacific and Europe.  Equities in the Asia Pacific region were mostly lower, though China, South Korea, and Australia's advanced and Tokyo markets were mixed.

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FX Daily, November 17: Greenback Remains Under Pressure

Overview: Moderna's announcement did not spur nearly the magnitude of the disruption caused by Pfizer's similar announcement a week ago.  Still, in the US, the NASDAQ underperformed the other indices, and the US Dow Industrials saw record highs.

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FX Daily, November 16: Risk-On Despite Surging Pandemic

Despite the surging pandemic and new restriction measure, risk-appetites appear strong to start the week. Led by 2% gains in the Nikkei and Taiwan's Taiex, all of the Asia Pacific region's equity markets advanced. European markets have followed suit and the Dow Jones Stoxx 600 is knocking on last week's eight-month high.

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FX Daily, October 26: Troubling Start of the Important Week

The surging virus ravaging large parts of Europe and the United States is fanning concerns over the economic implications as new social restrictions and curfews are announced in several countries. US additional fiscal support remains elusive as aid for states and local governments remains a bone of contention. 

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FX Daily, October 22: Greenback Stabilizes

Two sets of talks have riveted attention, and both appeared to have made progress yesterday. After some words, the EC, recognizing the importance of UK sovereignty, UK Prime Minister Johnson signaled a resumption of trade talks.

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FX Daily, October 21: Dollar Slumps as Yields Rise

Overview:  The dollar is falling against most of the world's currencies today, even as long-term yields rise to the most in four months and drags global yields higher.  The US 10-year yield is pushing above 0.80%, and the 30-year is above 1.60%. 

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FX Daily, October 20: Narrowly Mixed Markets as Clearer Direction Sought

The capital markets lack a clear direction today. This is reflected in narrowly mixed equities, bonds, and currencies. The spreading contagion is giving rise to new economic concerns, among other things, and the UK-EU talks are struggling to resume, while Pelosi-Mnuchin talks in the US continue to drag.

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FX Daily, October 16: Deja Vu All Over Again

It was like deja vu all over again. First, the market reacted immodestly to headlines indicating there was little chance of pre-election fiscal stimulus in the US. It was hardly new news. Then the market seemed to react with surprise that there was no last-minute breakthrough in the UK-EU trade negotiations.

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FX Daily, October 15: Markets Shake and Dollar Goes Bid

A combination of the surging virus, threatening the slow recovery that was already losing momentum, the lack of new stimulus in the US, and market positioning is seeing risk unwind in a big way today.  Equities are selling off. 

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FX Daily, October 14: UK Blinks on Threat to Walk Away on Eve of EU Summit

Overview: Turn around Tuesday saw the dollar bounce, particularly against the Australian dollar and European currencies, among the majors.  Sterling pared earlier losses on reports that the UK would not walk away from the talks just yet, while the euro remains on its back foot.

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FX Daily, October 13: Markets Look for Fresh Incentives

The S&P 500 and NASDAQ gapped higher for the third consecutive session and continued to advance. The benchmarks reached their best level since early September. Hong Kong markets were closed due to a storm, but the MSCI Asia Pacific gained for the seventh consecutive session. Most markets were higher, though Taiwan and South Korea were exceptions.

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FX Daily, October 12: Yuan in Spotlight in Consolidative Session

Led by 2-3% gains in Hong Kong and China, the MSCI Asia Pacific Index rose for the sixth consecutive session is pressing against the high for the year. European stocks are firmer, and the Dow Jones Stoxx 600 is up around 0.5% near midday, and shares are also trading firmer.

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FX Daily, October 08: Markets Catch Collective Breath

The S&P 500 and NASDAQ closed at their highest levels in around a month yesterday, recouping Tuesday's presidential tweet-driven drop. We thought the market overreacted to the end of the fiscal talks as many had already recognized that a stimulus agreement was unlikely before the election, but the near round-trip seen in stocks and bonds was surprising.

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FX Daily, October 07: The Day After

President Trump's tweet announced that negotiations with the House Democrat leadership had collapsed, and there will be no further talks until after the election. Many economists had been removing it from their Q4 GDP projections, but the market was caught wrongfooted. Risk came off.

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FX Daily, October 05: Monday’s Dollar Blues

New actions to contain the virus are being taken in the US and Europe, but investors are looking past it and taking equities and risk assets, in general, higher to start the new week. MSCI Asia Pacific recouped most of last week's 0.7% loss with gains of move than 1% in Japan, Hong Kong, South Korea, and Australia.

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FX Daily, October 2: POTUS Infected: Is this the October Surprise?

Before a US election, there is often speculation of a last-minute game-changing development. News earlier today that the US President and his wife have tested positive for the Covid virus has injected a new unknown into not only the US election but the markets as well.

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FX Daily, October 1: Hope Springs Eternal

Speculation that a new round of fiscal stimulus from the US is possible is encouraging risk-taking today.  Many large Asian centers were closed for holidays today, and a technical problem prevented the Tokyo Stock Exchange from opening.

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