Tag Archive: #USD

FX Daily, December 19: Whiff of Inflation in the Air

It is risky to read too much into the price action in holiday-thin markets, but inflation fears are beginning to surface. The price of January WTI is around $61, having tested $50 a barrel in Q3. The CRB Index made new highs for the year yesterday and is up almost 9% for the year. The US yield curve (2-10 year) has been steepening after being inverted for a few days in August, and now at nearly 29 bp, also is new highs for the year.

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

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 Daily, December 17: Sterling Drops as New Brinkmanship Begins

Overview: Efforts by a UK Prime Minister emboldened by a strong electoral victory to ensure that trade negotiations with the EU are not extended as the divorce has encouraged further profit-taking on sterling. After testing the $1.35 area on the exit polls last week, sterling had returned to where it closed before the results were known near $1.3160.

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FX Daily, December 16: China Data Surprises to the Upside while Europe’s Manufacturing PMI Disappoints

Overview: Despite better than expected Chinese data, and last week's investor-friendly developments, Asia Pacific equities were mixed. Australia led the advancing bourses with a 1.6% gain, its largest for the year despite the government revising down growth and wages. China, Taiwan, and Indian markets also moved higher.

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FX Daily, December 13: Stunning Tory Victory and US-China Trade Boosts Risk Assets

Overview: The combination of a US-China trade deal and exit polls showing the Tories securing a majority in the House of Commons boosted risk assets, sent sterling flying, and the euro sharply higher. Separately, the Fed stepped up its efforts to make as smooth as possible funding over the turn of the year.

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FX Daily, December 12: Enguard Lagarde

With the FOMC meeting delivered no surprises, attention turns to the ECB meeting as the UK go to the polls. Lagarde will hold her first press conference as ECB president today, and it will naturally command attention. Equities are advancing today, and tech appears to be leading the way. In Asia Pacific, Taiwan and South Korea rallied more than 1%, while the Hang Seng gapped higher to almost its best level in three weeks.

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FX Daily, December 11: Sterling Holds Firm Despite Tighter Poll

Overview: The capital markets continue to tread water as investors await this week's key events. The first, the FOMC meeting concludes later today. Tomorrow features the UK election, where the race appears to have tightened, and Lagarde's first ECB meeting at the helm. Global equities continue consolidating the recent gains. Asia Pacific equity markets were mostly higher.

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FX Daily, December 10: Capital Markets: Still Seems to be the Calm before the Storm

Overview: Equities are trading lower, and bonds are mixed as the FOMC, UK election, and the US decision on the December 15 tariffs draw near. The MSCI Asia Pacific Index three-day rally ended today as only China and South Korea's markets rose. Europe's Dow Jones Stoxx 600 gapped slightly lower at the open.

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FX Daily, December 09: China’s Steps-Up Import Substitution Strategy while USMCA Comes Down to the Wire

The important week is off to a slow start. While the MSCI Asia Pacific benchmark extended its gains for a third session, European and US shares are struggling. The Dow Jones Stoxx 600 is consolidating its pre-weekend 1%+ rally, while US shares are trading heavier after rallying for the last three sessions.

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FX Daily, December 6: And Now for the Employment Report

Overview:  Asia Pacific equities closed higher today, with India being a notable exception.  Hong Kong and South Korea led with 1% rallies.  For the week, the MSCI index for the region advanced to snap a three-week decline.  European and US bourses have not fared as well.  The Dow Jones Stoxx 600 is paring this week's losses, but it is still off around 0.9% through the European morning session. 

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FX Daily, December 5: Sterling Sent Higher as Market Discounts Next Week’s Election

Overview: Global equity markets have resumed their climb after a wobble at the end of last week and earlier this week. A strong recovery in the S&P 500 on Tuesday signaled yesterday's strong advance that left a bullish one-day island low in its wake. MSCI Asia Pacific Index snapped a two-day decline today with nearly all the market with the notable exception of South Korea advanced.

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FX Daily, December 4: Hope Springs Eternal

Overview: The prospect of not just the failure of the US and China to resolve its trade dispute but a new escalation has sapped the confidence that had lifted equity benchmarks and the greenback. Led by more than a 1% decline in Tokyo (Nikkei), Hong Kong, and Australia, all the major markets in the Asia Pacific region fell. European shares, perhaps encouraged by an upward revision to the flash composite PMI, are snapping a four-day 2.75% slide.

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FX Daily, December 3: US Brandishes Tariff Weapon and Weakens Animal Spirits

Asia Pacific equities mostly declined in sympathy with yesterday's large sell-off in the US and Europe. China and Taiwan were the notable exceptions, while Australia's 2.2% decline, following the central bank meeting that resulted in what many are seeing as a hawkish hold, led the move lower. Europe's Dow Jones Stoxx 600 fell 1.6% yesterday, the largest loss in two months, and is extending the losses for a third session today.

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FX Daily, December 2: PMIs Provide Latest Fuel for Equity Markets

Mostly better than expected manufacturing PMI readings for December, including in China, is providing the latest incentive for equity market bulls. Led by the Nikkei, which was aided by a weaker yen major equity markets in Asia Pacific rallied and recouped most of the nearly 1% loss before the weekend. Europe's Dow Jones Stoxx 600 is also shrugging off the pre-weekend loss and to challenge the multiyear high recorded last week.

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FX Daily, November 29: Equities Slip While Investors Mark Time

Overview: Global equities are trading heavily. Both the MSCI Asia Pacific and the Dow Jones Stoxx 600 snapped four-day advancing streaks yesterday and have seen some follow-through selling today. In the Asia Pacific region, all the markets fell but Jakarta. Hong Kong's Hang Seng slipped a little more than 0.2% yesterday but dropped 2% earlier today to record its biggest decline in three weeks.

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FX Daily, November 27: In Search of New Incentives

Overview: The global capital markets are subdued. There have been few developments to induce activity. Even President Trump's claims that the talks with China are in the "final throes" failed to excite. Equities are extending their advance. Bonds are little changed, and the dollar is mostly firmer. The MSCI Asia Pacific Index and Europe's Dow Jones Stoxx 600 advanced for the fourth consecutive session.

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FX Daily, November 26: Some Are More Equal Than Others

Overview: Neither optimistic comments from Federal Reserve Chairman, that the economic glass is more than half full, nor a seemingly positive spin on the weekend fall calendar between Chinese and US officials have succeeded in deterring some profit-taking today.

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FX Daily, November 25: Hong Kong, China, and UK Election Hopes Fan Modest Risk-Taking

Overview: The combination of the victory of the pro-democracy movement in Hong Kong and an apparent concession by China on intellectual property rights is helping bolster risk appetites to start the week. Equities are higher. Hong Kong's Hang Seng led Asia Pacific equities with a 1.5% gain, the second biggest this month. Korea and India's bourses also gained more than 1%.

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FX Daily, November 22: Europe’s Flash PMI Disappoints and Hong Kong Shares Advance Ahead of Sunday’s Election

Overview: Equities in the Asia Pacific managed to mostly shrug off the drag of the losses in US equities yesterday. China and India could not escape the pull, but most other bourses were higher, led by Singapore and Hong Kong. It was the second consecutive week that the MSCI Asia Pacific Index fell. The US and European benchmarks are paring this week's small losses.

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FX Daily, November 21: Markets Hear What it Wants from China’s Chief Negotiator, but HK maybe New Obstacle

Overview: The strongest signs to date that even phase one of a US-China trade deal is proving elusive helped spur the risk-off mood that had already been emerging. The S&P 500 fell by the most in a month (~-0.40%) yesterday, closing the gap from last week we had noted was the risk, and follow-through selling was seen in Asia Pacific and Europe.

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