Tag Archive: U.K.

Calm before the Storm?

2022-07-20

by

2022-07-20

The biggest rally in the S&P 500 in three weeks helped lift global equities today. The MSCI Asia Pacific index rose for the third consecutive session, the longest streak this month. Europe’s Stoxx 600 is up for a fourth day and is at its best level since mid-June.

Read More »

The Dollar is on its Back Foot

2022-07-19

by

2022-07-19

The dollar’s downside correction continues today, helped by hawkish signals from the Reserve Bank of Australia and unnamed sources who have played up the chances of a 50 bp hike by the European Central Bank on Thursday.

Read More »

Market Prices in More Aggressive Fed AND is more Confident of Rate Cuts by the End 2023

2022-07-14

by

2022-07-14

Overview: The higher-than-expected US CPI and the strong expectation of a 100 bp hike by the Fed in two weeks is propelling the dollar higher.

Read More »

Euro Parity Holds ahead of US CPI

2022-07-13

by

2022-07-13

Overview: The US dollar is consolidating with a slight downside bias ahead of the June CPI report. The euro held above $1.00 but is still pinned in the trough. The rate hike by the Reserve Bank of New Zealand failed to have much impact.

Read More »

Euro Tests Parity

2022-07-12

by

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.

Read More »

Monday Blues

2022-07-11

by

2022-07-11

Overview:  The US dollar is bid against most currencies today, encouraged not just by good news in the US and poor news out of China, where Covid is flaring up and new social restrictions are fared, while Macau has been lockdown for a week.

Read More »

FX Daily, July 8: Abe’s Assassination Shocks the World

2022-07-08

by

2022-07-08

News that former Prime Minister Abe was assassinated while campaigning in Japan ahead of the weekend election shocked the nation and world. The immediate market impact looks minimal. Asia Pacific equities mostly advanced.

Read More »

Johnson Resigns, but Still not Clear if He Controls the Timing

2022-07-07

by

2022-07-07

Overview: The resignation of a UK prime minister makes for high political drama, but the markets hardly moved on it. Sterling, like most of the major currencies, are recovering against the dollar today.

Read More »

The Dollar Remains Bid, while Sterling Shrugs Off Johnson’s Political Woes

2022-07-06

by

2022-07-06

Overview: The dollar jumped yesterday making new highs against most of the major currencies, including the euro, sterling, the dollar-bloc and the Scandis. The yen and Swiss franc held in better, but the greenback still closed firmly against the yen despite a six-basis point decline in the 10-year yield.

Read More »

No Turn Around Tuesday

2022-06-28

by

2022-06-28

Overview: The global capital markets are calm today. Most of the large bourses in the Asia Pacific extended yesterday’s gain. Europe’s Stoxx 600 is advancing for the third consecutive session and is near two-and-a-half week highs.

Read More »

Risk Appetites Improve Ahead of the Weekend

2022-06-24

by

2022-06-24

Overview: Equities are higher and bonds lower as the week's activity winds down. Asia Pacific markets rallied, paced by more than 2% gains in Hong Kong and South Korea.

Read More »

Risk Appetites are Fickle

2022-06-22

by

2022-06-22

Overview: Yesterday’s strong US equity gains failed to carry over into today’s session. Japanese and Australian shares fared the best among the large Asia Pacific market, with the Nikkei off less than 0.4% and the ASX off less than 0.25%.

Read More »

Equities Jump, Dollar Slips, and European Yields Drop

2022-06-21

by

2022-06-21

Stocks are rallying. Nearly all the large bourses in the Asia Pacific region rose with China being the noted exception.

Read More »

US Holiday Facilitates Consolidative Tone

2022-06-20

by

2022-06-20

Overview: Most equity markets in the Asia Pacific region lost ground today. China’s Shenzhen, Hong Kong, and India were notable exceptions.

Read More »

Prospects of Aggressive Tightening Sends Shock Waves through the Capital Markets

2022-06-14

by

2022-06-14

Overview: The markets' evolving expectations of a more aggressive monetary policy is not limited to the Federal Reserve, where the terminal rate is now straddling the 4% area, around 100 bp above late May levels.

Read More »

Dollar Jumps, Stocks and Bonds Slide

2022-06-13

by

2022-06-13

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%.

Read More »

Reserve Bank of Australia Surprises, but Aussie Struggles

2022-06-07

by

2022-06-07

Overview: The jump in US interest rates helped lift the greenback to new 20-year highs against the Japanese yen and pushed the euro back below $1.07. US equities saw initially strong gains pared and this set the tone for today’s activity.

Read More »

Macro and Prices: Sentiment Swings Between Inflation and Recession

2022-05-14

by

2022-05-14

(On vacation for the rest of the month.  Going to Portugal.  Commentary will resume on June 1.   Good luck to us all.) The market is a fickle mistress. The major central banks were judged to be behind the inflation curve.

Read More »

Sentiment Remains Fragile, and the Euro and Sterling can barely Sustain even Modest Upticks

2022-05-13

by

2022-05-13

Equities are recovering from dramatic losses.  Today, the Nikkei, Hang Seng, and Kospi surged by more than 2%. 

Read More »

Dollar and Yen Surge

2022-05-12

by

2022-05-12

Overview: Global equities are bleeding lower. Several large markets in the Asia Pacific region, including Hong Kong, Taiwan, and India are off more than 2%. Japan and Australian bourses fell by more than 1.5%.

Read More »