Tag Archive: Japan

FX Daily, February 17: Dismal Q4 Japanese GDP Fails to Spur Yen Movement

2020-02-17

Overview: It is only a US holiday today, but the global capital markets are subdued. In the Asia-Pacific region, equities traded lower with China and Hong Kong, the main advancers. The MSCI Asia Pacific Index has fallen in only two weeks since the end of last November, and that was during the last two weeks of January. Europe's Dow Jones Stoxx 600 slipped in the previous two sessions but is recouping the losses fully today.

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Two Years And Now It’s Getting Serious

2020-02-11

by Jeffrey P. Snider

2020-02-11

We knew German Industrial Production for December 2019 was going to be ugly given what deStatis had reported for factory orders yesterday. In all likelihood, Germany’s industrial economy ended last year sinking and maybe too quickly. What was actually reported, however, exceeded every pessimistic guess and expectation – by a lot.

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FX Daily, January 31: Stocks Finishing on Poor Note, while the Dollar and Bonds Firm

2020-01-31

by Marc Chandler

2020-01-31

Overview: It was as if the World Health Organization's recognition of that the new coronavirus is an international health emergency was the catalyst that the markets needed. US equities recovered smartly and managed to close higher on the session. However, the coattails were short, and follow-through buying of US shares fizzled.

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FX Weekly Preview: The Week Ahead and Why the FOMC Meeting may not be the Most Interesting

2020-01-27

by Marc Chandler

2020-01-27

The week ahead is arguably the most important here at the start of 2020. The Federal Reserve and the Bank of England meet. The US and the eurozone report initial estimates of Q4 19 GDP. The eurozone also reports its preliminary estimate of January CPI. China returns from the extended Lunar New Year celebration and reports its official PMI. Japan will report December retail sales and industrial production.

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FX Daily, January 23: ECB’s Strategic Review and the Coronavirus Command Investors’ Attention

2020-01-23

by Marc Chandler

2020-01-23

The spread of the coronavirus and the lockdown in the epicenter in China has again sapped the risk-taking appetite in the capital markets. Asia is bearing the brunt of the adjustment. Tomorrow starts China's week-long Lunar New Year celebration when markets will be closed, which may have also spurred today's drama that aw the Shanghai Composite tumbled 2.75%, bringing the week's loss to 3.2%, the most in five months.

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The Big And Small of Leading Japan

2020-01-23

by Jeffrey P. Snider

2020-01-23

In the middle of 2018, Japan, they said, was riding so high. Gliding along on the tidal wave of globally synchronized growth, Haruhiko’s courage and more so patience had finally delivered the long-promised recovery. The Japanese economy had healed to a point that its central bank officials believed it time to wean the thing off decades of monetary “stimulus.”

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Not Abating, Not By A Longshot

2020-01-14

by Jeffrey P. Snider

2020-01-14

Since I advertised the release last week, here’s Mexico’s update to Industrial Production in November 2019. The level of production was estimated to have fallen by 1.8% from November 2018. It was up marginally on a seasonally-adjusted basis from its low in October.

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Global Headwinds and Disinflationary Pressures

2020-01-11

by Jeffrey P. Snider

2020-01-11

I’m going to go back to Mexico for the third day in a row. First it was imports (meaning Mexico’s exports) then automobile manufacturing and now Industrial Production. I’ll probably come back to this tomorrow when INEGI updates that last number for November 2019. For now, through October will do just fine, especially in light of where automobile production is headed (ICYMI, off the bottom of the charts).

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FX Daily, January 8: Hopes of De-Escalation Help Markets Stabilize

2020-01-08

by Marc Chandler

2020-01-08

The Iranian retaliatory missile strike on Iraqi-bases housing US forces initially sparked a dramatic risk-off response throughout the capital markets. The muted response by the US coupled with signals from Tehran that it had "concluded" its proportionate measures saw the markets retrace the initial reaction. It was too late for equities in the Asia Pacific region, and several markets (Japan, China, Korea, Malaysia, and Thailand) fell more than 1%.

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FX Daily, December 27: Equities Rally While the Dollar Slumps into the Weekend

2019-12-27

by Marc Chandler

2019-12-27

Overview: Equities are finishing the holiday-shortened week on a firm note, encouraged by strong holiday internet sales in the US. Most markets in the Asia Pacific region advanced except China and Thailand, while Japanese markets were mixed after weak industrial output and retail sales. The MSCI Asia Pacific Index rose for the fourth consecutive week.

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FX Weekly Preview: Economic Data in the Holiday-Shortened Week

2019-12-23

by Marc Chandler

2019-12-23

The capital markets will turn increasingly quiet in the week ahead as the Christmas holiday thins participation. If this is the season of goodwill, investors are lapping it up. Global equity markets are finishing a strong year on a high note. Record highs were recorded in the S&P 500 and the Dow Jones Stoxx 600. The MSCI Emerging Markets equity index is at its best level since August 2018.

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FX Daily, December 18: Markets Turn Quiet Ahead of Central Bank Meetings

2019-12-18

by Marc Chandler

2019-12-18

Overview: The capital markets have turned quiet as the year-end positioning drives prices in lieu of fresh developments. Equities in the Asia Pacific region were narrowly mixed. The smaller markets in Asia performed better than the large bourses of Japan, China, and Korea, which eased. European equities are off to a firm start, and the Dow Jones Stoxx 600 is consolidating near the record high set Monday.

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FX Weekly Preview: An Eventful Week Ahead

2019-12-09

by Marc Chandler

2019-12-09

The US employment report on the first Friday of December usually marks the unofficial end of the year. The desks are often lighter and dealers are loath to jeopardize the year’s bonuses in thin and often erratic markets. This year is an exception. Next week features the first ECB meeting with Lagarde at the helm and the final FOMC meeting of the year.

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FX Weekly Preview: Fed’s Mid-Course Correction to be Challenged while ECB Resumes Bond Purchases

2019-10-28

by Marc Chandler

2019-10-28

The week ahead will help shape the investment climate for the remainder of the year. The highlights include three central bank meetings (Federal Reserve, Bank of Japan, and the Bank of Canada). Among the high-frequency data, the US and the eurozone report the first estimates of Q3 GDP, and the US October jobs data and auto sales will be released. Investors will also get the preliminary Oct CPI for EMU.

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Why The Japanese Are Suddenly Messing With YCC

2019-10-06

by Jeffrey P. Snider

2019-10-06

While the world’s attention was fixated on US$ repo for once, the Bank of Japan held a policy meeting and turned in an even more “dovish” performance. Likely the global central bank plan had been to combine the Fed’s second rate cut with what amounted to a simultaneous Japanese pledge for more “stimulus” in October. Both of those followed closely an ECB which got itself back in the QE business once more.

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FX Daily, October 1: Dollar Jumps to Start New Quarter

2019-10-01

by Marc Chandler

2019-10-01

Overview: The US dollar is rising against nearly every currency today as global growth concerns deepen. Japan's Tankan Survey showed large manufacturers confidence is a six-year low. The Reserve Bank of Australia cut 25 bp as widely expected and kept the door open for more. The final EMU PMI ticked up from the flash, but it is still at a seven-year low.

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Dollar Mixed on Central Bank Thursday

2019-09-20

by Win Thin

2019-09-20

As expected, the Fed cut rates by 25 bp; the dollar firmed after the decision but has since given back some gains. During the North American session, there will be a fair amount of US data. BOE is expected to keep rates steady; UK reported August retail sales. SNB and BOJ kept rates steady, as expected; Norges Bank unexpectedly hiked 25 bp.

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Japan: Fall Like Germany, Or Give Hope To The Rest of the World?

2019-08-29

by Jeffrey P. Snider

2019-08-29

After trading overnight in Asia, Japan’s government bond market is within a hair’s breadth of setting new record lows. The 10-year JGB is within a basis point and a fraction of one while the 5-year JGB has only 2 bps to reach. It otherwise seems at odds with the mainstream narrative at least where Japan’s economy is concerned.

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FX Daily, July 22: Greenback is Mostly Firmer to Start New Week, while the Euro is Pinned near $1.12

2019-07-22

by Marc Chandler

2019-07-22

What promises to be an eventful two weeks has begun quietly. The ECB, Fed, BOJ, and BOE will meet over the next fortnight. The central banks of Turkey and Russia meet this week and are expected to cut rates. The UK will have a new Prime Minister.

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FX Weekly Preview: Highlights in the Week Ahead

2019-07-22

by Marc Chandler

2019-07-22

Three events that will capture the market's attention next week: The consequences of the Japanese election, the first look at US Q1 GDP, and the ECB meeting. The central banks of Turkey and Russia also meet. Both are expected to cut interest rates, following rate cuts in the middle of last week by South Korea, Indonesia, and South Africa.

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