Tag Archive: China

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

2020-10-26

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2020-10-26

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

2020-10-22

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2020-10-22

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 20: Narrowly Mixed Markets as Clearer Direction Sought

2020-10-20

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2020-10-20

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 19: Sterling Sparkles in Dollar Setback

2020-10-19

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2020-10-19

Investors have not let the surge of the virus or uncertainty over the UK-EU talks or US fiscal stimulus to stand in their way.  Sterling is leading the major currencies higher, returning to the $1.30 area, while global equities are trading higher.

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

2020-10-15

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2020-10-15

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

2020-10-14

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2020-10-14

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 9: Animal Spirits Return

2020-10-09

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2020-10-09

Overview:  The on-again-off-again fiscal stimulus in the US is back on as the White House now supports a broad stimulus program, but not as big as the Democrats $2.2 trillion package.  It is the narrative being cited as the rebuilding of risk appetites is the wobble earlier in the week. 

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What’s Zambia Got To With It (everything)

2020-10-01

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2020-10-01

Argentina Bank
As one of Africa’s largest copper producers, it seemed like a no-brainer. Financial firms across the Western world, pension funds from the US or banks in Europe, they lined up for a bit of additional yield. This was 2012, still global recovery on the horizon – at least that’s what “they” all kept saying.

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FX Daily, September 28: Stocks Recover while the Greenback Consolidates

2020-09-28

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2020-09-28

Overview: Following the strong finish in the US before the weekend, global equities are paring last week's slide.  The MSCI Asia Pacific Index rose to for a second session. Markets in  Japan, Taiwan, South Korea, and India rose by more than 1%.  China and Australia were notable exceptions. 

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FX Daily, September 23: Trying to Find Solid Ground

2020-09-23

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2020-09-23

A more stable tone is evident in the capital markets after the S&P 500, and NASDAQ rose more than one percent yesterday.  Japan returned from a two-day holiday, and local shares slipped fractionally, while China, Hong Kong, South Korea, and Australian shares rallied.  India and Taiwan fell.

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FX Daily, September 21: Risk Appetites Join Tokyo on Vacation

2020-09-21

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2020-09-21

Global equity markets are off to a poor start to the week, and the dollar appears to be enjoying a safe-haven bid. Tokyo markets are closed until Wednesday, while Asia-Pacific stocks tumbled, and the regional index is unwinding last week's gains. The Dow Jones Stoxx 600  is off around 2.7% near midday in Europe.

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Reopening Inertia, Asian Dollar Style (Still Waiting On The Crash)

2020-09-20

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2020-09-20

Why are there still outstanding dollar swap balances? It is the middle of September, for cryin’ out loud, and the Federal Reserve reports $52.3 billion remains on its books as of yesterday.

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FX Daily, September 16: Dollar Eases Ahead of the FOMC

2020-09-16

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2020-09-16

Overview:  The dollar has been sold against nearly all the world's currencies ahead of what is expected to be a dovish Federal Reserve, even if no fresh action is taken. The Scandis and Antipodean currencies are leading the majors. 

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China’s Hole Puzzle

2020-09-16

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2020-09-16

China Fixed Asset Investment, 2012-2020
One day short of one year ago, on September 16, 2019, China’s National Bureau of Statistics (NBS) reported its updated monthly estimates for the Big 3 accounts. Industrial Production (IP) is a closely-watched indicator as it is relatively decent proxy for the entire goods economy around the world. Retail Sales in the post-Euro$ #2 context give us a sense of the Chinese economy’s persistent struggle to try to “rebalance” without the pre-2008 boost...

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FX Daily, September 15: The Dollar Softens Ahead of the FOMC

2020-09-15

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2020-09-15

The capital markets are relatively quiet so far today as the FOMC meeting gets underway. Equity markets in the Asia Pacific region, but Japan and Australia advanced, and the regional benchmark rose for the fourth consecutive session. European stocks are a little firmer. 

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FX Daily, September 14: UK Presses Ahead, China Strikes Out at German Pork Producers, and Moody’s Weighs on Turkey

2020-09-14

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2020-09-14

A flurry of deals, including the still-evolving Oracle-TikTok tie-up, helped lift equity markets in the Asia Pacific region. South Korea's Kospi, and Indonesia, which had been battered last week, led the advance. The MSCI Asia Pacific Index rose for the third consecutive sessions. European bourses are little changed while US stocks are firmer.

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FX Daily, September 09: Investor Anxiety Continues to Run High Despite Some Stability in the Capital Markets

2020-09-09

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2020-09-09

News that the AstraZeneca Phase 3 test had to be stopped to study the adverse reaction of one subject added to the uncertainty of investors amid one of the more significant reversals of risk appetites since March. Equities continued to slump in the Asia Pacific region, with many large markets off more than 1%, led by Australia's more than 2% decline.

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FX Daily, September 8: US Threats to Decouple from China and the Greenback Strengthens

2020-09-08

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2020-09-08

The markets remain on edge. US-China tensions are escalating. Strained Brexit talks are set to resume today. Profit-taking in the tech space has continued. The ECB meeting is around the corner. The MSCI Asia Pacific Index snapped a three-day slide today with most markets moving higher, led by a 1% gain in Australia. 

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FX Daily, September 4: Markets Look for more Solid Footing, but Need to Get Passed US Jobs Data

2020-09-04

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2020-09-04

The dramatic sell-off of US shares yesterday is the main focus, capturing the limelight from other forces, including today's US employment report.  It was the third-worst session for the S&P 500 since the March 23 bottom, and the other two did not see follow-through selling. 

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FX Daily, September 1: Dollar Lurches Lower

2020-09-01

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2020-09-01

The US dollar has been sold-off across the board. The euro approached $1.20, and sterling neared $1.3450. The greenback traded below CAD1.30 for the first time since January. Most emerging market currencies but the Turkish lira, are also advancing today.

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