Tag Archive: EU

Bank of England Steps in to Buy Inflation-Linked Bonds for the First Time

2022-10-11

by

2022-10-11

Overview:  The dollar continues to ride high. It reached its highest level against the yen since the recent intervention. The Canadian dollar has fallen to its lowest level in two-and-a-half years and the New Zealand dollar is approaching the 2020 extreme.

Read More »

Dollar Slump Halted as Stocks and Bonds Retreat

2022-10-05

by

2022-10-05

Overview: Hopes that the global tightening cycle is entering its last phase supplied the fodder for a continued dramatic rally in equities and bonds. The euro traded at par for the first time in two weeks, while sterling reached almost $1.1490, its highest since September 15.

Read More »

Can the US Employment Report be Anti-Climactic Ahead of Long North American Weekend?

2022-09-02

by

2022-09-02

Overview:  Nothing is decisive, but the recent string of data pushes the needle a little more to a soft landing for the US economy and gave the US dollar another leg up. The risk is that some of the buying drained some of the interest that may materialize after today's US jobs report. The greenback is softer against the major currencies except the Japanese yen. The dollar is extending its rally against the yen for the sixth consecutive session and...

Read More »

EU plant Einführung eines speziellen Crypto-Regulators

2022-08-16

by

2022-08-16

Wie genau dieser Regulator aussehen wird, ist noch nicht im Detail bekannt. Derzeit sprechen Offizielle lediglich von einem „Regulatory Body“, der Autorität über den Crypto-Sektor haben wird. Es ist jedoch anzunehmen, dass damit eine neue staatliche Organisation kreiert werden wird. Crypto News: EU plant Einführung eines speziellen Crypto-RegulatorsDamit kommt es zur Einführung einer sechsten Autorität des Finanzsektors, die das Ziel verfolgt,...

Read More »

Greenback Softens, but Think Twice about Chasing It

2022-07-25

by

2022-07-25

Overview: Aside from political economic risks, three other challenges are emerging. First, the new sub-variant of Covid is spreading rapidly. BA5 reportedly is accounting for around 80% of the new cases. It is better able to evade antibodies from vaccines and earlier infections. Hospitalization rates are also climbing. Dining, retail, and travel may be impacted. Second, the World Health Organization declared monkeypox a global emergency. The US...

Read More »

The Greenback Bounces Back

2022-06-08

by

2022-06-08

Overview: After modest US equity gains yesterday, the weaker yen and Beijing’s approval of 60 new video games helped lift most of the large markets in the Asia Pacific region.

Read More »

Greenback Softens Ahead of CPI

2022-05-11

by

2022-05-11

Overview: It appears that investors have become more concerned about growth prospects and less about inflation in recent days. The US 10-year yield that had flirted with 3.20% at the start of the week is now around 2.93%.

Read More »

Inflation and Geopolitics in the Week Ahead

2022-01-08

by

2022-01-08

The Omicron variant may be less fatal than the earlier versions, but it is disrupting economies. The surge in the Delta variant well into Q4 in the US and Europe was already slowing the recoveries.  Investors will likely take the high-frequency real sector data with the proverbial pinch of salt until January data available beginning later this month.

Read More »

FX Daily, December 6: Semblance of Stability Returns though Geopolitical Tensions Rise

2021-12-06

by

2021-12-06

EUR/CHF and USD/CHF, December 6
The absence of negative developments surrounding Omicron over the weekend appears to be helping markets stabilize today after the dramatic moves at the end of last week.  Asia Pacific equities traded heavily, and among the large markets, only South Korea and Australia escaped unscathed today. 

Read More »

Big Week Begins Slowly

2021-10-25

by

2021-10-25

Overview:  The global capital markets give little indication of the important economic and earnings data that lie ahead this week.  There is an eerie calm. Equities in Asia were mixed.  Japan and Hong Kong, and most small bourses were lower.  Last week, the MSCI Asia Pacific Index gained almost 0.9%. Europe's Stoxx 600 is little changed after rising about 0.5% last week. US futures are firm.  The S&P 500 and Dow Jones Industrials reached...

Read More »

Markets Turn Cautious

2021-10-21

by

2021-10-21

Overview: After a couple of sessions of taking on more risk, investors are taking a break today.  Equities are mostly lower today after the S&P 500's six-day advance took it almost to its record high, while the NASDAQ's streak was halted at five sessions.

Read More »

Market Economy Beats Planned Economy

2021-10-04

by

2021-10-04

Throughout the next weeks, we will regularly feature the keynote speeches held by our distinguished experts at this year’s digital Free Market Road Show.  The times we are living in – the pandemic – are times when our fundamental values are threatened maybe more than ever in modern times.

Read More »

How (Not) to Win Friends and Influence People

2021-09-13

by

2021-09-13

Overview:  There are two big themes in the capital markets today.  The first is the ongoing push of the Chinese state into what was the private sector.  Today's actions involve breaking Ant's lending arms into separate entities, with the state taking a stake.  This weighed on Chinese shares and Hong Kong, where many are lists. On the other hand, Japanese markets extended their recent gains.

Read More »

FX Daily, July 15: Strong Gains in US CPI and PPI Don’t Stop the Bond Market Rally

2021-07-15

by

2021-07-15

Strong inflation prints this week have not prevented the long-term US interest rates from tumbling. The 10-year yield is about 10 bp lower than where it closed on Tuesday after the lackluster 30-year auction. The 30-year yield itself is 11 bp lower.

Read More »

FX Daily, July 02: US Jobs and OPEC+ Day

2021-07-02

by

2021-07-02

The US jobs report and OPEC+ decision are awaited. The dollar remains bid.  Only the yen and Canadian dollar are showing a hint of resilience, though, on the week, the Scandis and dollar-bloc currencies are off between around 1-2%. The greenback is also firmer against the emerging market currency complex, and the JP Morgan index is off for the sixth consecutive session.

Read More »

FX Daily, June 25: Tokyo Escapes Deflation, Leaving the Greenback Trapped between Two Expiring Options against the Yen

2021-06-25

by

2021-06-25

New record highs in the S&P 500 and NASDAQ yesterday helped lift most Asia Pacific markets today. China and Hong Kong led the regional gains and were sufficient to lift the MSCI regional benchmark to halt a two-week drop.

Read More »

FX Daily, June 14: Dollar Becalmed as Markets Wait for US Leadership

2021-06-14

by

2021-06-14

The short squeeze that lifted the US dollar ahead of the weekend has seen limited follow-through buying, and instead a consolidative tone emerged. Europe is searching for direction and perhaps waiting for US leadership after a quiet Asia Pacific session, with several centers closed for holiday today (China, Hong Kong, Taiwan, and Australia).

Read More »

FX Daily, May 19: Now What Does Bitcoin say About the Dollar and the US?

2021-05-19

by

2021-05-19

A setback in commodities and technology are roiling equity markets today. The inability of US equities to sustain yesterday's rally provided an initial headwind to trading in the Asia Pacific region today. Hong Kong and South Korea markets were closed for holidays, but most of the bourses fell, led by Australia, where the market tumbled nearly 2%, the most in almost three months as the drop in mining and energy took a toll.

Read More »

Vaccine diplomacy: Soft power lessons from China and Russia

2021-04-18

by

2021-04-18

As Covid-19 continues to rage throughout Europe, China and Russia seem to be giving the European Union lessons in soft power on its home ground. EU members and countries nearby are turning to Beijing and Moscow for additional supplies of Covid-19 vaccines, faced with rising discontent at the slow rollout of the EU’s own vaccination strategy, supply shortages, delivery bottlenecks, poor communication and concerns about vaccine safety.

Read More »

FX Daily, March 29: Markets Look for Direction after Large Block Trade and Before Key Data

2021-03-29

by

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.

Read More »