Tag Archive: China

FX Daily, October 9: Animal Spirits Return

2020-10-09

by

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. 

Read More »

What’s Zambia Got To With It (everything)

2020-10-01

by

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.

Read More »

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

2020-09-28

by

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. 

Read More »

FX Daily, September 23: Trying to Find Solid Ground

2020-09-23

by

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.

Read More »

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

2020-09-21

by

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.

Read More »

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

2020-09-20

by

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.

Read More »

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

2020-09-16

by

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. 

Read More »

China’s Hole Puzzle

2020-09-16

by

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...

Read More »

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

2020-09-15

by

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. 

Read More »

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

2020-09-14

by

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.

Read More »

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

2020-09-09

by

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.

Read More »

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

2020-09-08

by

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. 

Read More »

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

2020-09-04

by

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. 

Read More »

FX Daily, September 1: Dollar Lurches Lower

2020-09-01

by

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.

Read More »

FX Daily, August 31: Month-End Gyrations and the Fed’s Ad Hocery

2020-08-31

by

2020-08-31

Markets are searching for direction at month-end. Asia Pacific shares outside of Japan lower. Berkshire Hathaway confirmed taking a $6 bln stake in Japanese trading companies over the past year, and the pullback in the yen helped lift shares.  The MSCI Asia Pacific Index rose 2% last week. 

Read More »

FX Daily, August 27: After much Build-Up, Could Powell be Anti-Climactic?

2020-08-27

by

2020-08-27

The strong rally in US equities yesterday, with the fifth consecutive gain in the S&P 500 and a big outside up day in gold, failed to spur follow-through buying today. Asia Pacific equities were mixed. China, Australia, and India rose while most of the rest of the regional markets fell.

Read More »

FX Daily, August 26: Hurricane Laura Lifts Oil Prices

2020-08-26

by

2020-08-26

A consolidative tone has emerged after US equity benchmarks reached new highs yesterday. The MSCI Asia Pacific Index had reached seven-month highs on Tuesday, but Japan, China, and Australian stocks saw modest profit-taking today. European shares are recouping yesterday's minor loss, and US shares are flat. 

Read More »

FX Daily, August 24: Markets Prove Resilient to Start New Week

2020-08-24

by

2020-08-24

New virus outbreaks in Europe and Asia are not adversely impacting the capital markets today. Global equities are firmer. Some reports suggesting the US ban on WeChat may not be as broad as initially signaled helped lift Hong Kong shares, but nearly all the markets in the region traded higher.

Read More »

FX Daily, August 20: FOMC Minutes Spur Profit-Taking

2020-08-20

by

2020-08-20

Overview: The FOMC minutes depicted a Federal Reserve that appeared to be not quite ready to take fresh initiatives, whether it is yield curve control or changing the composition or quantities of its bond purchases.  This unleashed profit-taking on some of the large moves in equities, the dollar, and gold.

Read More »

FX Daily, August 19: US Equities Outperform but Does Little for the Heavy Greenback

2020-08-19

by

2020-08-19

EUR/CHF and USD/CHF, August 19
Overview:  The S&P 500 and NASDAQ set new all-time highs yesterday, but the continued outperformance of US equities have failed to lend the dollar much support.  It was sold to new lows for the year yesterday against the euro, sterling, the Swedish krona, and the Australian dollar. 

Read More »