Tag Archive: China House Prices

FX Daily, January 16: Markets Look for New Cues with US-China Trade Pact Signed

2020-01-16

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2020-01-16

Overview: The global capital markets are calm today as investors await fresh trading incentives. New record highs in the US equity indices gave Asia Pacific stocks a lift, though China and Taiwan were notable exceptions. Europe's Dow Jones Stoxx 600 is firm new record highs set last week.  US equities are edging higher in Europe. Benchmark bond yields are little changed.

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FX Daily, September 17: Markets Calm(er)

2019-09-17

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2019-09-17

Overview: Oil prices have stabilized after yesterday's surge. Both Brent and WTI are holding on to around $7-$8 a barrel gain. Equity markets are mixed. Some are attributing the losses in Asia Pacific outside of Japan (Nikkei rose its highest level since late April), Korea and Australia to the rise in oil prices. European shares opened lower are straddling unchanged levels.

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FX Daily, August 15: Animal Spirits Lick Wounds

2019-08-15

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2019-08-15

Overview:  It took some time for investors to recognize that the scaling back of US tariff plans was not part of a de-escalation agreement. There was an explicit acknowledgment by US Commerce Secretary Ross that there was no quid pro quo. The US tariff split was more about the US than an overture to China. 

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FX Daily, June 18: Draghi Ends Calm Ahead of FOMC, Sending the Euro and Yields Down

2019-06-18

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2019-06-18

Overview:  ECB President Draghi underscoring the likely need for more stimulus broke the subdued tone as market participants took a "wait and see" stance ahead of tomorrow's FOMC decision.  Draghi's comments sent the euro through $1.12 for the first time in two weeks and drove European bonds yields to new lows.

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FX Daily, May 16: US Struggles to Strike a Less Strident Tone

2019-05-16

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2019-05-16

Overview: Retail sales and industrial production disappointed in both the US and China prior to the end of the tariff truce, declared by the US in a series of presidential tweets on May 5.  The reaction function of the US to the drop in equities was to play down tensions on three fronts.  First, a US team is expected to return to Beijing in the coming weeks. 

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For The First Time In 25 Years, China Has To Make A Choice Between External Stability And Growth

2018-11-28

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2018-11-28

Current account balance and forecasts 2000-2020
Back in August 2 we reported of a historic event for China's economy: for the first time in its modern history, China's current account balance for the first half of the year had turned into a deficit. And while the full year amount was likely set to revert back to a modest surplus, it was only a matter of time before one of the most unique features of China's economy - its chronic current account surplus - was gone for good.

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FX Daily, January 18: Currencies Consolidate After Chop Fest

2018-01-18

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2018-01-18

The US dollar rallied in the North American afternoon yesterday and the timing coincided with the release of the Fed's Beige Book that saw several districts report wage and price pressures. The US 10-year yield moved toward toward 2.60%, and helped by speculation that as US companies repatriate earnings kept abroad that they may have to liquidate the investments, some of which are thought to be in Treasuries.

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FX Daily, October 23: US Dollar Starts New Week on Firm Note

2017-10-23

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2017-10-23

The US dollar is enjoying modest gains against most currencies as prospects of both tax reform and additional monetary tightening by the Fed carry over from last week. The strong showing of the Liberal Democrats in Japan, where the governing coalition has maintained its super-majority is seen as confirmation of continuity. This helped lift Japanese shares and weighed on the yen. The Nikkei advanced 1.1%, the most in a month, and extends the...

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FX Daily, September 18: More Thoughts from Berlin

2017-09-18

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2017-09-18

The unexpected weakness in US retail sales and industrial production reported before the weekend did not prevent US yields and stocks from rising.  Asia followed suit, and with Japanese markets closed, the MSCI Asia Pacific Index rallied a little more than 1%, the largest gain in two months.  Of note, foreigners returned to the Korean stock market, buying about $260 mln today, which cuts the month's liquidation in half.  The Kospi rallied 1.3%...

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FX Daily, July 18: Dollar Dumped on Doubts on US Economic Agenda

2017-07-18

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2017-07-18

News of the defection of two more Republican Senators doomed the Senate attempt to replace and repeal America's national health care. The failure to replace the system dubbed Obamacare, despite the Republican majority in both legislative chambers and the executive branch raises questions about the broader strategy of the Administration and raises serious questions about the rest of its legislative agenda.

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