Tag Archive: Canada

Ever Grand

Overview: Coming into yesterday's session, the S&P 500 had fallen in eight of the past ten sessions.  It closed on its lows before the weekend and gapped.  Nearly the stories in the press blamed China and the likely failure of one of its largest property developers, Evergrande. 

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Risk Appetites Didn’t Return from the Weekend

Overview: Investors' mood did not improve over the weekend, and the lack of risk appetites are rippling through the capital markets today.  Equities have tumbled, yields have backed off, and the dollar is well bid.  Hong Kong and Australia led the sell-off in the Asia Pacific region, off 3.3% and 2.1%, respectively. 

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Is it Really all about US CPI?

Overview:  The markets are in a wait-and-see mode, it appears, ahead of the US CPI figures, as it absorbs bond supply from Europe and monitors the potential restructuring of China's Evergrande.  A new storm may hit US oil and gas in the Gulf before recovering from the past storm and helping to underpin prices.

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Don’t Make a Fetish Out of What may be a Minor Change in the Pace of ECB Bond Buying

Overview: Yesterday's retreat in US indices was part of and helped further this bout of profit-taking. The MSCI Asia Pacific Index ended an eight-day advance yesterday and fell further today. Japanese indices, which had set multiyear highs, fell for the first time in nine sessions. Hong Kong led the regional slide with a 2.3% decline as China's crackdown on the gaming industry continued. 

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Consolidative Mood Grips Markets

Overview:  The dollar is consolidating yesterday's advance and is confined to fairly narrow ranges in quiet turnover.  Most of the major currencies are within 0.1% of yesterday's close near midday in Europe. The $1.1700-level held in the euro. 

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Gold’s Flash Crash and Limited Follow-Through Greenback Gains

Overview:  A flash crash saw gold drop more than $70 an ounce in early Asia. Silver was dragged lower too.  The precious metals have stabilized at lower levels, but it signals a rough adjustment to a higher interest rate environment as a hawkish BOE and strong US employment data suggest peak monetary stimulus is at hand. 

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US Employment Data is Important but for the Millionth Time, Don’t Exaggerate It

Overview: Record high closes yesterday for the S&P 500 and NASDAQ have done little to help global equities today.  Most of the Asia Pacific region markets, but Japan and Australia slipped ahead of the weekend while still holding on to gains for the week.

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Greenback Softens amid Stronger Risk Appetites to Start August

Overview: Risk appetites snap back after easing in the waning hours last month. The MSCI Asia Pacific equities jumped back after dropping 1.8% last week for the second week in a row. Japan's Topix and China's CSI 300 rose by more than 2%, and Hong Kong, Taiwan, and Australia gained more than 1%. 

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FX Daily, July 21: 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. 

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FX Daily, July 15: Strong Gains in US CPI and PPI Don’t Stop the Bond Market Rally

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.

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FX Daily, July 13: Headline US CPI may Decline for the First Time in a Year

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.

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FX Daily, July 09: PBOC Cuts Reserve Requirements after Inflation Measures Ease

The capital markets are winding down what has been a challenging week that has seen equity markets slide and the dollar and bonds rally. The MSCI Asia Pacific fell for the fourth consecutive session, but the more interesting story may be the intrasession recovery that could set the stage for a better performance next week.

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FX Daily, July 02: US Jobs and OPEC+ Day

The US jobs report and OPEC+ decision are awaited. The dollar remains bid.  Only the yen and Canadian dollar are showing a hint of resilience, though, on the week, the Scandis and dollar-bloc currencies are off between around 1-2%. The greenback is also firmer against the emerging market currency complex, and the JP Morgan index is off for the sixth consecutive session.

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FX Daily, June 30: The Greenback is Firm into Quarter-End

The dollar is finishing the quarter on firm footing, gaining against most of the major currencies today. The euro is straddling the $1.1900 area, having begun the month above $1.22. Sterling has tested the $1.38 area. It had traded at a three-year high near $1.4250 at the start of the month.

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FX Daily, June 10: ECB Meeting and US CPI: Transitory Impact

The ECB meeting and the US May CPI report is at hand. The US dollar is consolidating at a higher level against most of the major currencies. Softer than expected, inflation readings are weighing on the Scandis, which are bearing the brunt. The US 10-year yield closed below 1.50% for the first time in three months yesterday, and this may have helped underpin the Japanese yen.

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FX Daily, February 23: Dramatic Market Adjustment Continues

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, January 20: The Dollar Slips to New Lows against Sterling and the Mexican Peso

Global equities are moving higher today. Led by continued strong buying of Hong Kong shares, the MSCI Asia Pacific Index rose to new highs. The Hang Seng is up 6% this year and is approaching the 2019 record high. Australia's shares set a new record today. Japan and Taiwan bucked the trend.

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FX Daily, January 18: US is on Holiday, but the Dollar has Legs

Overview: The new week has begun like last week ended.  Equities are a bit heavy.  The MSCI Asia Pacific Index fell for the second session, its first back-to-back loss since before Christmas.  China and Hong Kong were the notable exceptions, perhaps helped by stronger than expected GDP. 

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FX Daily, December 11: Brexit Fears Weigh on Sterling

Overview:  The odds of a UK-EU agreement and new stimulus before year-end in the US have faded and are sapping risk appetites ahead of the weekend.  Although most Asia Pacific equity markets gained, China and Australia were notable exceptions, European shares are heavy, and the Dow Jones Stoxx 600 is near three-week lows. 

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FX Daily, December 9: Hope Burns Eternal

The market is hopeful today. The Johnson-von der Leyen dinner is seen as evidence that both sides see one more opportunity, and sterling is among the strongest currencies today. Hopes of a $900 bln+ fiscal stimulus package in the US helped stir animal spirits and lift US stocks to record highs yesterday.

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