Tag Archive: China Caixin Services PMI

The Chinese HSBC Services PMI is compiled by questionnaires sent to purchasing executives in over 400 private service sector companies. The panel has been carefully selected to accurately replicate the true structure of the services economy. The HSBC Services PMI Index is developed for providing the most up-to-date possible indication of what is really happening in the private sector economy by tracking variables such as sales, employment, inventories and prices. A higher than expected reading should be taken as positive/bullish for the CNY , while a lower than expected reading should be taken as negative/bearish for the CNY.

FX Daily, July 6: New Record Number of Covid Cases Doesn’t Curtail Appetite for Risk

2020-07-06

by

2020-07-06

Overview: A new daily high number of contagions globally has been reported, but the risk-appetites have been stoked.  Chinese stocks have been on a tear.  The Shanghai Composite rallied 5.7% today to bring the five-day advance to 13.6%.  Most other regional markets, including Hong Kong, rallied as well (3.8%).  Australia was the main exception, and it pulled back by 0.7%.  It is still up a solid 3.4% over the past five sessions.

Read More »

FX Daily, June 3: Dollar is Sold and ROW is bought

2020-06-03

by

2020-06-03

Overview: Two recent trends continue.  Equities are moving higher, and the dollar remains heavy.  Equity markets in the Asia Pacific region rose at least one percent, and South Korea, Singapore, and Malaysia rallied 2-3%.  Europe's Dow Jones Stoxx 600 is up more than 1% for the third consecutive session.  US shares are trading higher and are poised to extend their recent run.

Read More »

FX Daily, May 7: China Reports an Unexpected Jump in Exports, While Norway Surprises with a Rate Cut

2020-05-07

by

2020-05-07

Overview: There is a sense of indecision in the air today.  There have been several developments, but investors seem mostly reluctant to extend positions. China reported a surge in exports in April and an increase in the value of reserves.  Australia reported a rise in exports in March.  The Bank of England left policy steady, but clearly signaled it was prepared to boost its asset purchases. 

Read More »

FX Daily, March 4: Equities Trade Higher, While Yields Continue to Fall

2020-03-04

by

2020-03-04

Overview:  The G7 delivered up a nothing burger than was shortly followed by a 50 bp Fed cut.  The equity market seemed to enjoy it briefly and extended Monday's dramatic gains, before falling out of bed.  The S&P 500 lost about 2.2%, while the Dow Industrial slumped 3%, but shortly after the markets closed, equities began recovering, and the recovery carried over to the Asia Pacific region and Europe.

Read More »

FX Daily, February 5: Markets Extend Recovery, but Look for a Pause

2020-02-05

by

2020-02-05

Overview: The S&P 500 gapped higher and surged 1.5% yesterday, the most since in six months, helping set the stage for a continued recovery in global equities, and stoked risk appetites more broadly. An experimental antiviral treatment is to begin clinical testing. All of the markets in the Asia Pacific region advanced, with Japan, China, and Singapore gaining more than 1%.

Read More »

FX Daily, January 6: Markets Struggling to Stabilize to Start the New Week

2020-01-06

by

2020-01-06

Overview: The global capital markets have yet to stabilize amid heightened geopolitical tension. Even though the US stock market finished last week off its lows, the sell-off continued in the Asia Pacific region. Japan's markets re-opened after an extended holiday, and the yen, at three-month highs, saw the Nikkei sell-off nearly 2%. Several markets in the region lost over 1%, including Taiwan, India, Thailand, and Indonesia. Europe's Dow Jones...

Read More »

FX Daily, December 4: Hope Springs Eternal

2019-12-04

by

2019-12-04

Overview: The prospect of not just the failure of the US and China to resolve its trade dispute but a new escalation has sapped the confidence that had lifted equity benchmarks and the greenback. Led by more than a 1% decline in Tokyo (Nikkei), Hong Kong, and Australia, all the major markets in the Asia Pacific region fell. European shares, perhaps encouraged by an upward revision to the flash composite PMI, are snapping a four-day 2.75% slide.

Read More »

FX Daily, November 5: Animal Spirits Remain Animated

2019-11-05

by

2019-11-05

The prospects that the US-China deal could include some rolling back of existing US tariffs helped underpin risk appetites. After new record highs in the US S&P 500 and NASDAQ, Asia Pacific markets marched higher, and the MSCI Asia Pacific reached its highest level since August 2018. A small rate cut by China and catch-up by Tokyo, which was on holiday on Monday, helped extended the regional rally for the 14th session in the past 17.

Read More »

FX Daily, September 04: HK Concession and Better EMU PMI Overshadows Self-Inflicted Trade and Brexit Woes

2019-09-04

by

2019-09-04

Risk appetites have been bolstered by three developments. The UK appears to have taken a tentative step away from leaving the EU without a deal. Hong Kong's Chief Executive Lam has agreed to formally withdraw the controversial extradition measure that had been suspended.

Read More »

FX Daily, July 03: Yields Extend Decline

2019-07-03

by

2019-07-03

Overview: Interest rates are lurching lower.  The US 10-year yield is at new two-year lows, but the driver is European bonds where peripheral yields are 6-7 bp lower,  though Italy's benchmark is off 12 bp, while core yields are down 2-3 bp to new record lows.  The German benchmark is almost minus 40 bp, while the Swiss 10-year is beyond minus 100 bp.  Italy's two-year is breaking more convincingly below zero.

Read More »

FX Daily, June 05: Dollar Remains on Back Foot

2019-06-05

by

2019-06-05

Overview: The Federal Reserve's patience never excluded a rate cut should conditions warrant. The acknowledgment of this without signaling a change its stance is being seized upon to justify aggressive pricing of rates. At the same time, there has some tempering of trade anxiety on the margin that is also constructive. Asia and European equities were pulled higher after the strongest rally in several months in the US. 

Read More »

FX Daily, May 06: Trump’s Tariff Tweets Help Investors Discover Volatility

2019-05-06

by

2019-05-06

Reports that a US-China deal could be struck by May 10 before the weekend left investors ill-prepared for the presidential tweets yesterday that announced that the US was ending the tariff truce. Trump indicated that the 10% tariff on $200 bln of Chinese goods would be lifted to 25% at the end of the week and that the remaining $325 bln of Chinese goods that have not been subject to an extra levy, will be slapped with a 25% tariff soon.

Read More »

FX Daily, September 05: Continuing EM Pain Helps the Dollar, but does Little for Yen

2018-09-05

by

2018-09-05

The dollar is posting gains against most of the emerging market and major currencies. The MSCI Emerging Markets Index is off 1.6% and extending the drop to a sixth consecutive session. Indonesia's bourse saw the largest decline (~3.75%) in the region. In part, it reflects concern that the rupiah's weakness (falling now nine of the past 10 sessions) will boost corporate debt servicing costs.

Read More »

FX Daily, April 04: Trade Specificities Rattle Markets

2018-04-04

by

2018-04-04

Late yesterday, the US announced that specific tariffs and goods that would be targeted for intellectual property violations. China had warned of a commensurate response and earlier today made its announcement. This sent reverberations through the capital markets, driving down equities, corn and soybean prices (subject to Chinese tariffs). The US dollar was sold, especially against the yen, euro, and sterling.

Read More »

FX Daily, March 05: Italian Election Weighs on Italian Assets, but Little Systemic Risk Seen

2018-03-05

by

2018-03-05

The US dollar is narrowly mixed. The Japanese yen remains firm. The dollar appears stuck in a narrow range. Near JPY105.20 the seems to be some short-covering pressure in front of JPY105. On the top side, the greenback is encountering offers in front of JPY105.80. Sterling is firm against the dollar as it recovers against the euro. Before the weekend, the euro reached GBP0.8950, its best levels since last November. The euro is testing GBP0.8900...

Read More »

FX Daily, February 05: Dollar Consolidates while Equity Rout may be Ebbing

2018-02-05

by

2018-02-05

Asian equity markets were weighed down by losses in the US markets ahead of the weekend. The MSCI Asia Pacific Index was off 1.4% after the 1.0% pre-weekend loss. The Nikkei gapped lower and shed 2.5% and has fallen in eight of the past nine sessions. The notable exception in Asia was the Shanghai Composite. The 0.75% was led by the financial sector amid talk that a report later this week will show a strong jump in yuan lending from banks, which...

Read More »

FX Daily, January 04: Greenback Continues to Consolidate Recent Losses

2018-01-04

by

2018-01-04

The US dollar is sporting a softer profile across the board, though remaining largely in the ranges seen over the past couple of sessions. At the same time, the news stream suggests that the global synchronized growth cycle strengthened late last year and is bound to carry over into the New Year.

Read More »

FX Daily, December 05: Sterling Sold on Negotiating Snafu, Aussie Bounces on Retail Sales and RBA

2017-12-05

by

2017-12-05

The US dollar is confined to narrow ranges against the euro and yen, straddling unchanged levels in the Asian session and the European morning. The action in elsewhere. The British pound is the weakest of the majors, paring 0.4% against the greenback, though around $1.3425, it can hardly be considered weak. A month ago, sterling was a few cents lower. Still, its gains reflected two things: broader dollar weakness and optimism on Brexit talks.

Read More »

FX Daily, November 03: Dollar Firms Ahead of What is Expected to Be Strong US Jobs Data

2017-11-03

by

2017-11-03

The US dollar is firm but is not going anywhere quickly. The lack of fresh interest rate support and uncertainty over the US tax proposals, which the Brady, the Chair of the House Ways and Means Committee hopes to have a revised version out after the weekend so the committee work can begin on Monday.

Read More »