Tag Archive: ECB
FX Daily, September 2: Corrective Pressures Give the Greenback a Reprieve
After poking above $1.20 for the first time in more than two years, the euro reversed lower yesterday and is continuing to succumb to profit-taking pressures today. Comments from ECB's Lane appeared to trigger a reversal yesterday throughout the currency markets.
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FX Daily, September 1: Dollar Lurches Lower
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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FX Daily, August 31: Month-End Gyrations and the Fed’s Ad Hocery
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.
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Science of Sentiment: Zooming Expectations Wonder
It had been an unusually heated gathering, one marked by temper tantrums and often publicly expressed rancor. Slamming tables, undiplomatic rudeness. Europe’s leaders had been brought together by the uncomfortable even dangerous fact that the economic dislocation they’ve put their countries through is going to sustain enormously negative pressures all throughout them. What would a “united” European system do to try and fill in this massive hole?The...
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FX Daily, August 4: Markets Looking for Fresh Directional Cues
Asia Pacific equities rallied after the US shares rallied with the Nasdaq reaching record highs after it and the S&P 500 gapped higher yesterday. Japan and Hong Kong led the rally with more than 2% gains, while the Shanghai Composite lagged with about a 0.1% gain.
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Accusing the Accused of Excusing the Mountain of Evidence
Why not let the accused also sit in the jury box? The answer seems rather obvious. While maybe the truly honest man accused of a crime he did commit would vote for his own conviction, the world seems a bit short on supply of those while long and deep offering up practitioners of pure sophistry in their stead.
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FX Daily, July 16: Equities Slide and the Greenback Bounces After China’s GDP and Before the ECB
Overview: Profit-taking, perhaps spurred by disappointing retail sales figures, sent Chinese equity markets down by 4.5%-5.2% today, the most since early February. It appears to be triggering a broader setback in equities today. The Hang Seng fell 2%, and most other markets in the region were off less than 1%.
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FX Daily, June 30: When Primary is Secondary
The gains in US equities yesterday carried into Asia Pacific trading today, but the European investors did not get the memo. The Dow Jones Stoxx 600 is succumbing to selling pressure and giving back yesterday's gain. Energy and financials are the biggest drags, while real estate and information technology sectors are firm. All the markets had rallied in the Asia Pacific region, with the Nikkei and Australian equities leading with around 1.3%...
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FX Daily, June 25: Contagion Growth and Calendar-Effect Saps Investor Enthusiasm
Given the huge run-up in risk assets this quarter, and the technical indicators warning of corrective forces, concerns over the new infections is pushing on an open door. The S&P 500 gapped lower yesterday and fell 2.6%, led by energy and airlines. The NASDAQ snapped an eight-day rally. Follow-through selling in the Asia Pacific region saw most markets fall at least 1%, with Korea and Australia seeing losses in excess of 2%.
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FX Daily, June 17: Correction Phase does not Appear Over
Overview: Investors have not yet completely shaken off the angst that saw equities slide last week. All equity markets in the Asia Pacific region, but Japan, edged higher today, including China, India, and South Korea, where political/military tensions are elevated. Europe followed suit, and the Dow Jones Stoxx 600 is firm near yesterday's highs. It has entered but not yet filled the gap created by the sharply lower opening on June 11.
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ECB Doubles Its QE; Or, The More Central Banks Do The Worse You Know It Will Be
A perpetual motion machine is impossible, but what about a perpetual inflation machine? This is supposed to be the printing press and central banks are, they like to say, putting it to good and heavy use. But never the inflation by which to confirm it. So round and round we go. The printing press necessary to bring about consumer price acceleration, only the lack of consumer price acceleration dictates the need for more of the printing press.
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FX Daily, June 5: Greenback Remains Soft Ahead of Employment Report, but Reversal Possible
The modest loss in the S&P 500 and NASDAQ yesterday did not signal the end of the bull run. All the markets in the Asia Pacific region rallied, with the Hang Seng among the strongest with a 1.6% advance that brought the week's gain to around 7.8%. South Korea's Kospi was not far behind with a weekly gain of 7.5%. In the past two weeks, the MSCI Asia Pacific Index is up nearly 10%.
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FX Daily, June 4: Risk Taking Pauses Ahead of the ECB
Overview: After several days of aggressive risk-taking, investors are pausing ahead of the ECB meeting. Equities were mostly higher in the Asia Pacific region, though China was mixed, and Indian shares slipped. Europe's Dow Jones Stoxx 600 is snapping a five-day advance, and US shares are trading with a heavier bias. The S&P 500 gapped higher yesterday, and that gap (~3081-3099) offers technical support.
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FX Daily, May 29: Month-End Profit-Taking Weighs on Equities as the Euro Pops Above $1.11
Overview: The announcement that President Trump will hold a press conference on China later today rattled investors yesterday after they had earlier shrugged off the escalation of tension between the US and China to take the S&P 500 up to its highest level in nearly three months. The S&P 500 reversed and settled on its lows, and this carried over into today's activity, which also may be reflecting month-end adjustments.
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FX Daily, May 28: Escalating Tensions, Calm Markets
Overview: The US Secretary of State's announcement that the autonomy of Hong Kong could no longer be affirmed did not derail the rally in US equities. However, the threat of an executive order against social media companies may be discouraging follow-through buying, leaving US equities little changed ahead of the open. In contrast, Asia Pacific and European equities are mostly higher.
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FX Daily, May 27: China and Hong Kong Pressures are Having Limited Knock-on Effects
Overview: The S&P 500 gapped higher yesterday, above the recent ceiling and above the 200-day moving average for the first time since early March. The momentum faltered, and it finished below the opening level and near session lows. The spill-over into today's activity has been minor. The heightened tensions weighed on China and Hong Kong markets, but Japan, South Korea, Taiwan, and Indian equity markets rose.
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FX Daily, May 26: Fear is Still on Holiday
Overview: The heightened tensions between the US and China sapped risk-appetites before the weekend, but appear to be missing in action today. Equity markets have rebounded strongly. Nearly all the equity markets in the Asia Pacific region rose (India was a laggard) led by an almost 3% rally in Australia, which was seen as particularly vulnerable to the Sino-American fissure.
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The global economy doesn’t care about the ECB (nor any central bank)
The monetary mouse. After years of Mario Draghi claiming everything under the sun available with the help of QE and the like, Christine Lagarde came in to the job talking a much different approach. Suddenly, chastened, Europe’s central bank needed assistance. So much for “do whatever it takes.”They did it – and it didn’t take.Lagarde’s outreach was simply an act of admitting reality.
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FX Daily, May 6: The Euro is Knocked Back Further
Overview: The late sell-off in US stocks yesterday has not prevented gains in Asia and Europe. Most of the equity markets, including the re-opening of China, gain more than 1%. Australia was a notable exception, falling about 0.4%, and Taiwan was virtually flat. European bourses opened higher but made little headway before some profit-taking set in, while US shares are trading higher.
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FX Daily, April 30: ECB Takes Center Stage
Overview: Equities continue to recover even as deep economic contractions are reported. Yesterday, the US said Q1 GDP contracted at an annualized pace of 4.8%, while the eurozone reported today that output fell 3.8% quarter-over-quarter in Q1. Hong Kong and South Korea were closed, but the rest of the Asia Pacific bourses rallied strongly with several, including Australia and India, rising more than 2%.
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