Tag Archive: Germany
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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RBNZ Delivers a Dovish Hike and UK Inflation Surprises to the Upside
Overview: Equities in the Asia Pacific region and
Europe are being led lower by the sell-off in the US yesterday. All the large
Asia Pacific markets fell with Hong Kong and mainland shares setting the pace.
Europe's Stoxx 600 is off nearly 1.5%, which would be the largest loss in two
months. Consumer discretionary, financials and real estate sectors are off
nearly 2%. US equity futures have a softer bias. European 10-year yields are
mostly 2-3 bp...
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Key Chart Points Hold and the Dollar’s Rally Stalls Ahead of the Weekend
Overview: Hawkish comments from Fed officials and the first
decline in continuing unemployment claims below 1.8 mln in two months boosted
US rates and the odds of a June rate hike rose to about 37%. This represents a
near tripling of the probability in the past week. It has been a trend with the
odds rising in 9 of the past 11 sessions. The two-year note yield has risen for
the past five sessions coming into today for a cumulative gain of about 35...
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Biden to Go to G7 Summit with Debt Ceiling Unresolved
Overview: The US debt ceiling talks resume at the
White House today but a deal is unlikely to be announced. President Biden will
attend the G7 summit in Hiroshima with the debt ceiling still looming. The
dollar is mostly softer as last week's gains are pared. The Swiss franc and
Japanese are the strongest in the G10. The Thai baht and South African rand,
among the market's favorites yesterday are seeing those gains retraced. The JP
Morgan Emerging...
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Frankfurt University Forms Master in Blockchain & Digital Assets
Frankfurt School of Finance Center and its Blockchain center designed a new four semester long post-experience master program (MSc) last year. The Frankfurt School’s goal is to provide the expert knowledge necessary to students looking to shape and lead blockchain innovation around the globe and in all industries.
Technical and economical understanding on the topics of blockchain, digital assets (including Bitcoin and Ethereum), DeFi, Web3,...
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The Greenback Continues to Struggle
Overview: There is a nervousness that hangs over the capital markets.
Although US banks shares recovered at the end of last week, many continue to
see the sector’s challenges as the harbinger of a dramatic reversal in the Fed’s
stance. America’s debt ceiling looms large and could be a few weeks away. China
led Asia Pacific bourses higher, and, ironically, its bank shares extended their
rally. Japan, returning from last week’s holiday was notable...
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The Greenback Remains Heavy Ahead of the Employment Report
Overview: The US dollar is weaker against all the
G10 currencies today but the Swiss franc. The backdrop seems fragile even
though a few regional bank shares have done better in after-hours trading and
Apple's earnings were received well by the markets. Due to seasonal factors and
other considerations, many are warning about a US jobs report, even though
ADP's estimate surprised to the upside earlier this week. Equities were mixed
in the Asia...
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Dollar Pares Gains but is Poised to Recover in North America
Overview: A rise in US yields, with the
two-year Treasury closing yesterday at its best level in more than three weeks
help fuel follow-through dollar buying yesterday after an upside reversal at
the end of last week. Key levels were approached, like $1.09 in the euro,
$1.2345 in sterling, and JPY135 held, and the dollar has consolidated in Asia
and Europe. The euro and sterling recouped around half of the losses seen from
the Friday's high to...
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Fragile Calm Casts a Pall over the Capital Markets
Overview: There is a fragile calm in the capital
markets today ahead of the long holiday weekend for many. The poor US economic
data yesterday and third consecutive decline in the KBW bank index weighed on
risk sentiment. Most of the large bourses in the Asia Pacific region fell, with
Hong Kong and India notable exceptions. In Japan, the Topix bank index fell
1.1% after a 1.9% decline yesterday and is now lower on the week. Europe's
Stoxx 600 is...
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RBA Holds Fire, Sterling Reaches Best Level since last June, and the Dollar Struggles to Find Much Traction
Overview: The jump in oil prices is the newest shock and the May
WTI contract is holding above $80 a barrel as it consolidates yesterday's
surge. A week ago, it settled near $73.20. Australian and New Zealand bond
yields moved lower, partly in catch-up and partly after the RBA stood pat. South
Korean bonds also rallied on the back of softer inflation (4.2% vs. 4.8%). But
European and US benchmark yields is 2-4 bp higher. The large equity markets...
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Dollar Soft but Stretched
Overview: While bank stress seems to continue
to ease, the dollar languishes against most of the major currencies. The
Japanese yen is the notable exception. It is off about 1.5% this week. The
Dollar Index has given back the gains scored at the end of last week but
remains inside the range set last Thursday and Friday (~101.90-102.35). Perhaps
the participants are waiting for Friday. In addition to month-, quarter, and
fiscal-year ends, it is...
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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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Yen Jumps Despite Poor GDP Ahead of Tomorrow’s BOJ Outcome
Overview: Seeing the drama he inspired on Tuesday,
the Fed chair tried soft-pedaling the idea that he was signaling a 50 bp hike
in March. The market did not buy it. And the odds, discounted by the Fed funds
futures rose a little above 70% from about 62% at Tuesday's close. The two-year
note yield solidified its foothold above the 5% mark. With the Bank of Canada
confirming its pause, the Reserve Bank of Australia does not seem that far
behind, and...
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US Dollar is Better Bid Ahead of Powell, while Aussie Sells Off on Dovish Hike by the RBA
Overview: The US dollar is trading with a firmer bias against
nearly all the G10 currencies ahead of Federal Reserve Chairman Powell's
semi-annual testimony before Congress. Speaking for the Federal Reserve, the
Chair is likely to stay on message which is higher rates are necessary to cool
the overheating economy. This comes on the heels of the Reserve Bank of
Australia's 25 bp hike and indication that it is not pre-committing to an April
hike. The...
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Markets Catch Collective Breath
Overview: After last week's flurry of activity that saw the US
dollar extend its recovery, it has begun off the new week largely consolidating
in relatively narrow ranges. The Australian and New Zealand dollar's remains
softer, and the Swiss franc is virtually flat, but the other G10 currencies,
led by sterling are posting small gains. A break-through on the Northern
Ireland protocol, which has been rumored for a more than a week may be
announced...
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Siemens Issues First Digital Bond on Blockchain
Siemens is one of the first companies in Germany to issue a digital bond, in accordance with Germany’s Electronic Securities Act.
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Yen Retreats Ahead of Formal BOJ Announcement Tomorrow and US CPI
Overview: A consolidative tone is mostly the theme of the day. The revisions to the US CPI announced before the weekend add to the uncertainty and focus on tomorrow's report. At the same time, investors watch ongoing air space activity that has led to a few objects being shot down over the US and Canadian airspace.
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US Interest Rate Adjustment Post-Jobs is Over as the 2-Year Yield Backs Away from 4.50%
Overview: The capital markets have shrugged off the
more than 1% loss of the Nasdaq and S&P 500 yesterday and have jumped back
into risk assets. The stocks and bonds have been bought and the dollar sold. Chinese
and Hong Kong shares gained more than 1% today. Japan was mixed and Taiwan and
South Korean equites saw minor losses. Europe's Stoxx 600 is up over 1%. Nasdaq
futures are up nearly 1.2% while the S&P 500 is lagging slightly....
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Anti-Climactic Return of China
Overview: The re-opening
of China's mainland market amid reports of strong activity during the holiday,
was relatively subdued. The CSI 300 rose less than 0.5% and the Shanghai
Composite eked out less than a 0.2% gain. The 0.5% gain in the yuan was largely
in line with the performance of the offshore yuan. Indeed, it seems like a bit
like "buy the rumor sell the fact" type of activity as Hong Kong's
Hang Seng tumbled 2.75%, to give back...
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Bank of Canada may say Pause, but the Market Hears Finished
Overview: Amid sharp losses in the US equity futures, the US dollar is mostly firmer against the G10 currencies. The notable exception is the Australian dollar, where high-than-expected inflation boosts the risk of a more aggressive central bank.
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