Tag Archive: India

Risk Appetites Challenged after US Equities Tumble

2022-12-07

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2022-12-07

Overview: The sharp sell-off of US stocks yesterday as sapped the risk appetite today. Equities are being sold. Hong Kong and the index of mainland shares that are listed there led the regional decline with 3.2%-3.3% losses. Europe’s Stoxx 600 is off about 0.65% in late morning turnover, the fourth day of losses. US futures are trading with a lower bias as well. European 10-year bonds are mostly 1-2 bp firmer. The US 10-year Treasury is practically...

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Macro: Tell Us Something We Don’t Already Know

2022-09-24

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2022-09-24

As September winds down, three sets of economic reports will draw the most attention. We will review them and then offer a snapshot of the emerging market central bank meetings.

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Downside Risks to the US Employment Report?

2022-08-05

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2022-08-05

Overview: The US dollar enjoys a firmer bias against the major currencies ahead of the July employment data. Emerging market currencies are mixed. Asian currencies are generally firm while central Europe is a bit softer. Some detect a relaxation in tensions around Taiwan, though China’s aerial harassment continues. Taiwanese shares jumped 2.25% to lead the region that saw China’s CSI 300 rally over 1%. Europe’s Stoxx 600 is giving back yesterday’s...

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Euro Tests Parity

2022-07-12

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2022-07-12

Equities remain under pressure as investors contemplate tighter financial conditions and the risks of recession. Most of the large equity markets in the Asia Pacific region sold-off, led by a 2.7% drop in Taiwan.

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The Greenback Bounces Back

2022-06-08

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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.

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Synchronizing Chinese Prices (and consequences)

2022-05-14

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2022-05-14

It isn’t just the vast difference between Chinese consumer prices and those in the US or Europe, China’s CPI has been categorically distinct from China’s PPI, too. That distance hints at the real problem which the whole is just now beginning to confront, having been lulled into an inflationary illusion made up from all these things.

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Fed Day

2022-05-04

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2022-05-04

Overview: The markets are mostly treading water ahead of the FOMC decision later today. Tech stocks tumbled in Hong Kong and the Hang Seng fell a little more than 1%, while India was the worst performer in the region falling over 2% following an unexpected and intra-meeting hike by the Reserve Bank of India.

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So Much Fragile *Cannot* Be Random Deflationary Coincidences

2022-03-10

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2022-03-10

At first glance, or first exposure to this, there doesn’t seem to be any reason why all these so many pieces could be related. Outwardly, from the mainstream perspective, anyway, you’d think them random, and even if somehow correlated they’re supposed to be in the opposite way from what’s happened.

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Markets Calmer, Awaiting Fresh Incentives

2021-12-08

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2021-12-08

Overview:  The capital markets are calmer today, and the fear that was evident at the end of last week remains mostly scar tissue. Led by gains in Japan, China, Australia, New Zealand, and India, the MSCI Asia Pacific Index extended yesterday's gains.  Europe's Stoxx and US futures are firm.  The US 10-year yield is softer, around 1.43%, while European yields are mostly 1-2 bp lower.  The Norwegian krone and euro lead major currencies higher...

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FX Daily, June 04: US and Canada Report on Jobs as G7 Fin Mins Talk Taxes

2021-06-04

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2021-06-04

Stronger than expected US employment data, ahead of today's monthly report and compromise proposal on corporate tax by the White House to help secure a deal on infrastructure sent US bond yields and the dollar high. Late dollar shorts were forced to cover.

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FX Daily, April 26: Big Week Begins Quietly, with the Greenback Still Under Pressure

2021-04-26

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2021-04-26

Overview: What promises to be a notable week has begun off quietly: the US, EMU, and South Korea report Q1 GDP.   The eurozone also provides its first estimate of April inflation.  Corporate earnings feature tech and financial firms.  Equities are mostly firmer in the Asia Pacific region and Europe.

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FX Daily, February 05: Position Squaring Weighs on the Dollar Ahead of the Jobs Report

2021-02-05

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2021-02-05

Overview:  While equities continue to march higher, the dollar is softer amid position squaring ahead of the US jobs data.  Gold has stabilized after yesterday's shellacking.  Estimates for US nonfarm payrolls appear to have been creeping higher, encouraged by the ADP, PMI, and weekly initial jobless claims.

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FX Daily, August 06: Markets Consolidate

2020-08-06

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2020-08-06

EUR/BGN Currency Pair
The Australian dollar powered to marginal news highs for the year as the move against the US dollar continued yesterday. The euro stopped a few hundredths of a cent below the high seen at the end of last week. However, neither sustained the upside momentum and have come back offered today.

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FX Daily, July 28: Dollar Bounces, Gold Slips, while Equities Hold Their Own

2020-07-28

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2020-07-28

The main development in the capital markets today is the firmer dollar against nearly all the major and emerging market currencies.  Among the majors, the New Zealand dollar and Swedish krona are the heaviest (~-0.4%), while the Swiss franc and yen are marginally lower.

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FX Daily, June 24: Risk Appetites Satiated for the Moment

2020-06-24

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2020-06-24

Overview: The rally in risk assets in North America yesterday is failing to carry over into today's activity. Asia Pacific equities were mixed. Korea and Indonesia led the advances with more than 1% gain. China and Taiwan also gained. Japan and Hong Kong. Europe's Dow Jone's Stoxx 600 is giving back yesterday's gains (~1.3%) plus some and US stocks are heavy.

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FX Daily, June 17: Correction Phase does not Appear Over

2020-06-17

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2020-06-17

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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FX Daily, June 2: Greenback’s Slide Continues

2020-06-02

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2020-06-02

Overview: Liquidity trumps everything else.  US equities shrugged off the national guard being called into action in nearly a third of US states, and the S&P 500 closed yesterday at nearly three-month highs. Asia Pacific markets followed suit.  Most markets in the region rose by more than 1%. The notable exceptions were Australia and China, where benchmarks rose by 0.2%-0.3%. The Dow Jones Stoxx 600 is up more than 1% in the European morning.

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FX Daily, May 22: US-China Escalation Sinks Hong Kong and Hits Risk Appetites

2020-05-22

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2020-05-22

Overview: The US has ratcheted up pressure on China on several fronts and has sapped risk appetites ahead of the weekend.  Equity markets are lower across the world.  Even in India, where the central bank unexpectedly cut the repo rate 40 bp, shares fell 0.7%.  It was Hong Kong's 5.5% that led the region lower.  Europe's Dow Jones Stoxx 600 is off around 1% in late morning turnover to pare this week's gain to about 2.5%. 

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FX Daily, April 27: Equities Rally and the Dollar Eases to Start the Week

2020-04-27

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2020-04-27

Overview: Global equities are beginning the new week on an upbeat note.  All the markets in the Asia Pacific region rallied, led by more than 2% gains in the Nikkei and Taiwan.  European bourses are higher.  All the industry groups are participating and financials and consumer discretionary leading the way. 

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