Tag Archive: France
Fitch Puts US on Negative Credit Watch and the Dollar Extends its Gains
Overview: Concerned about the political wrangling over servicing US
debt, Fitch put the US on negative credit watch. Besides chin
wagging and finger pointing, it has had little perceptible impact. The dollar
is mostly higher, reaching new highs for the year against the Japanese yen,
Chinese yuan, and the Antipodean currencies. The euro and sterling met
retracement objective we have targeted (~$1.0735 and $1.2435, respectively).
The greenback is...
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France on strike
The roots of the injustice that brought over a million to the streets
It is the core of a long running joke that the French love to strike more than they like to work – and for good reason. Demonstrations, strikes and even riots, have been a common occurrence for decades. However, this latest round seems to be interestingly persistent, despite the fact that it’s receiving increasingly sparse media coverage.
The last time that the French...
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Dollar Comes Back Bid, as First Republic Taken Over (Mostly) by JP Morgan
Overview: Most markets are closed for the May Day
holiday. News that JP Morgan will acquire most of First Republic assets will be
a relief for the markets. US equity futures are slightly firmer, and the
10-year Treasury yield is around three basis points higher, slightly above
3.45%. Recall that before the weekend, it has fallen from almost 3.55% to 3.42%.
The market has more than a 90% chance of a quarter-point hike discounted for
Wednesday. The...
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Firm US Dollar as Market is Feeling More Comfortable with May Hike
Overview: The dollar fell most of last week
but reversed higher before the weekend. It has seen some follow-through gains,
albeit limited against most of the G10 currencies today. Despite some seemingly
dovish comments by a few Fed officials last week, the Fed funds futures is
pricing in the greatest chance for a hike at the early May meeting since the
banking stress erupted last month. The greenback is also trading with a firmer
bias against most...
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Calmer Markets to Start the New Week
Overview: There did not appear to be any negative
surprises over the weekend, and this is helping calm investors' nerves at the
start of the new week. Deutsche Bank shares have recovered most of the
pre-weekend loss in the German market, and Stoxx bank index is posting a gain
for the first time in four sessions. The AT1 ETF is slightly softer. In Japan,
the Topix bank index slipped around 0.5%, its fourth decline in the past five
sessions. Asia...
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Concerns Over US Banks Rival Today’s Jobs Report
Overview: The unexpectedly large rise in US weekly
jobless claims, the largest since the end of last September and concerns about
the impact of the sharp rise in interest rates on the liquidity and value of
assets (bonds) owned by small and medium-sized banks saw the market unwind the
effect of Fed Chair Powell's comments. The yield on the US two-year note
slumped almost 20 bp to 4.87% yesterday and fell to 4.75% today before
stabilizing (~4.82%)....
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The Dollar Posts Corrective Upticks, while the Market Digests China’s Initiatives
Overview: China’s new initiatives to support the property sector helped lift the Hang Seng. And while the China’s CSI 300 edged higher both the Shanghai and Shenzhen composites fell. Most Asia Pacific markets fell, while Europe’s Stoxx 600 is posting a small gain.
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The Greenback Firms to Start the New Week, Stocks Slide
Overview: The busy week is off to a slow
start as Japan is on holiday and the UK and Canadian markets are closed to
honor Queen (Australia will commemorate with a holiday on Thursday). Nevertheless,
the sell-off in equities continues and the US dollar is firm. Most of the large
markets in Asia fell. India is a notable exception. Its benchmark rose for the
first time in four sessions, helped by bank shares and Infosys. Europe’s Stoxx
600 is off for...
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US Holiday Facilitates Consolidative Tone
Overview: Most equity markets in the Asia Pacific region lost ground today. China’s Shenzhen, Hong Kong, and India were notable exceptions.
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Dollar Jumps, Stocks and Bonds Slide
The prospect of a more aggressive Federal Reserve policy has spurred a sharp sell-off in global equities and bonds and sent the dollar sharply higher. The large Asia Pacific bourses were off mostly 2%-4%.
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China’s Covid Sends Commodities Lower and helps the Dollar Extend Gains
Overview: Fears that the Chinese lockdowns to fight Covid, which have extended for four weeks in Shanghai, are not working, and may be extended to Beijing has whacked equity markets, arrested the increase in bond yields, and lifted the dollar.
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The Yen Bounces after 13-Day Slide and BOJ Defends Yield Cap
Overview: The record-long yen slide has stalled just shy of JPY129.50, even though the Bank of Japan defended its Yield-Curve Control cap on the 10-year bond and will continue to do so for the next four sessions. The greenback fell to almost JPY128 before steadying. China again defied expectations for lower rates (loan prime rate), the yuan's sell-off accelerated and slide to its lowest level since last October.
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Binance Sets up at Paris’ STATION F to Develop the Web.3 Ecosystem in Europe
Binance, a global blockchain ecosystem and cryptocurrency infrastructure provider, announced the opening of its space in at the startup campus STATION F in Paris.
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Swiss Blockchain Startup Wecan Chooses France for Its Expansion
Wecan Group SA, a Swiss Blockchain software provider used Swiss private banks, is favoring an expansion in France for its internationalization. Behind this choice: an investment from Michel Reybier, owner of La Réserve hotels, and a selection in the Swave program, an initiative of the French government to attract the most promising fintechs in France.
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As The Fed Seeks To Justify Raising Rates, Global Growth Rates Have Been Falling Off Uniformly Around The World
Sentiment indicators like PMI’s are nice and all, but they’re hardly top-tier data. It’s certainly not their fault, these things are made for very times than these (piggy-backing on the ISM Manufacturing’s long history without having the long history). Most of them have come out since 2008, if only because of the heightened professional interest in macroeconomics generated by a global macro economy that can never get itself going.
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FX Daily, November 9: Falling Yields Give the Yen a Boost
Overview: Reports that the Fed's Brainard was interviewed for the Chair helped soften yields a bit, not that they needed extra pressure, on ideas she is more dovish than Powell. In turn, the lower yields saw the yen rise to its best level in nearly a month and led the major currencies higher against the dollar.
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US-EU Rapprochement, Can France and UK Do the Same?
Overview: It is mostly a quiet start to the new month. Most of Europe is closed for the All -Saints holiday and the week's key events start tomorrow with the Reserve Bank of Australia meeting. News that the Liberal Democrats retained a majority in the lower chamber of the Diet helped lift Japanese indices by 2%. Most of the large regional markets gained, though China and Hong Kong markets fell. US index futures are trading with a higher bias...
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Soaring Energy Prices Lift Yields, Weigh on Equities and the Greenback Pops
Overview: Rising energy prices and yields are helping lift the US dollar and weighing on equities. November WTI has pushed above $76, while Brent traded above $80, and natural gas is up for the fourth consecutive session, during which time it has risen by about 25%.
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Risk Appetites Didn’t Return from the Weekend
Overview: Investors' mood did not improve over the weekend, and the lack of risk appetites are rippling through the capital markets today. Equities have tumbled, yields have backed off, and the dollar is well bid. Hong Kong and Australia led the sell-off in the Asia Pacific region, off 3.3% and 2.1%, respectively.
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FX Daily, June 21: Dollar Surge Stalls
Pressure on equities seen last week carried over into Asia and Europe today. The MSCI Asia Pacific Index fell for the fourth consecutive session, led by more than a 3% decline in the Nikkei. Australia, Taiwan, and Hong Kong bourses fell by more than 1%. European equities opened lower, but have turned higher.
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