Tag Archive: China

FX Daily, March 30: US Yields Push Higher, Lifting the Greenback Especially Against the Euro and Yen

2021-03-30

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2021-03-30

The US 10-year yield is at new highs since January 2020, pressing above 1.77% and helping pull up global yields today.   European benchmarks yields are up 4-5 bp, and the Antipodean yields jump 8-9 bp.  The impact on equities has been minor, and the talk is still about the unwinding of Archegos Capital. 

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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 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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Looking Past Gigantic Base Effects To China’s (Really) Struggling Economy

2021-03-16

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2021-03-16

China Industrial Production, 1999-2021
The Chinese were first to go down because they had been first to shut down, therefore one year further on they’ll be the first to skew all their economic results when being compared to it. These obvious base effects will, without further scrutiny, make analysis slightly more difficult.

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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 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 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 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, 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 11: Oil Set to Snap 8-day Advance while Consolidative Tone Emerges in FX

2021-02-11

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2021-02-11

Overview: The S&P 500 and NASDAQ were unable to sustain the gap higher opening to new record levels and reversed lower and fell to new three-lows. The settlements were just inside Tuesday ranges, though the Dow Industrials set a record close. Yet, there was spillover to equity trading in the Asia Pacific region and Europe today.

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FX Daily, February 10: China’s Expansion Does not Prevent Deflation

2021-02-10

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2021-02-10

Despite a soft close in US indices yesterday, global shares are on the march again today.  Led by China and Hong Kong, most large markets in the Asia Pacific region advanced today.  Officials gave approval for a new game from Tencent, which helped lift the Hang Seng.

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FX Daily, February 9: Players are Not Buying Everything Today

2021-02-09

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2021-02-09

The rally of US benchmarks to new record highs helped lift most Asia Pacific markets today, but the bulls are pausing in Europe, and there has been little follow-through buying of US shares.  Australia, South Korea, and Indonesia did not participate in today's regional advance led by a 2% rally in China's main indices.

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FX Daily, February 8: Limited Follow-Through Dollar Selling to Start the Week

2021-02-08

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2021-02-08

Overview: The US dollar has drifted higher against the major currencies and most of the freely accessible emerging market currencies, paring the losses seen before the weekend in response to the disappointing employment report. Easing pressure from the pandemic as the surge in cases after the holidays may also be encouraging risk-taking to extend the global equity rally.

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FX Daily, February 4: Negative Rates and the Bank of England: Having Your Cake and Eating it Too

2021-02-04

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2021-02-04

Overview:  The euro has been sold through $1.20 for the first time since December 1 and has now given back roughly half of the gains scored from the US election (~$1.16) to the early January high (~$.1.2350).  More broadly, the greenback is bid against most of the major currencies, with the Australian dollar more resilient after reported record iron ore exports and all but a handful of emerging market currencies. 

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FX Daily, January 27: The Fed and Earnings on Tap

2021-01-27

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2021-01-27

Overview:  Risk appetites seem subdued even if GameStop's surge draws attention. Asia Pacific equities mostly slipped lower, and profit-taking was seen in Hong Kong and Seoul, which are off to an incredibly strong start to the year. Small gains were reported in Tokyo, Beijing, and Taipei.

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FX Daily, January 26: Subdued Activity as New Incentives Awaited

2021-01-26

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2021-01-26

Overview:  After rallying strongly to start the year, Asia Pacific equities, led by the high-flying Hang Seng, sold-off, led by Tencent.  Most markets in the region were off at least 1%.  Australia and India escaped the profit-taking due to holidays.  Europe's Dow Jones Stoxx 600 is faring better and looks poised to snap a two-day fall, led by materials, financials, information technology, and consumer staples.

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FX Daily, January 25: A Subdued Start to a Big Week

2021-01-25

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2021-01-25

What promises to be an eventful week has begun off on a mostly subdued note. Asia Pacific equities moved higher, again led by Hong Kong and ostensibly mainland buying. The Hang Seng rose 2.4% to bring this year's gain to 10.75%. South Korea's Kospi also increased by more than 2%, and, so far this month, it is up almost 11.7%. 

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FX Daily, January 22: Faltering Friday

2021-01-22

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2021-01-22

Fear that social restrictions may have to be broadened and extended is helping spur a wave of profit-taking and de-risking, which has also been encouraged by disappointingly high-frequency data. The equity rally seemed to falter a bit in the US, as the S&P 500 eked out a minor 0.03% gain yesterday.

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

2021-01-20

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2021-01-20

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 19: Even When She Speaks Softly, She’s Yellen

2021-01-19

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2021-01-19

Overview: The animal spirits are on the march today.  Equities are mostly higher, peripheral European bonds are firm, and the dollar is mostly softer. After posting the first back-to-back decline this year, the MSCI Asia Pacific Index bounced back today, led by a 2.7% gain in Hong Kong (20-month high) and a 2.6% rise in South Korea's Kospi. 

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