Emerging economies are wary of the strength of the US dollar. They are taking steps to ensure the soaring greenback doesn’t fuel inflation and derail growth. We explain why they remain vulnerable. In addition, growing...
The US dollar is mixed today. The dollar-bloc currencies are firmer, while the euro and yen are softer. We had anticipated a recovery of the dollar on ideas that the market has too aggressively pushed...
The capital markets are quiet today. Equity markets and bond yields have a slight upside bias, while the dollar is little changed. Despite reports that the lockdown in Chengdu is easing, Chinese equities underperformed in...
The sharp sell-off of US equities yesterday weighed on global equities today. The Asia Pacific bourses were a sea of read with many of the large markets off 2%-3%. Japan, which returned from a three-day...
Weekends are sacrosanct. The overworked Indian population strives to bond with their relatives, friends and make the most of the 2 or 1.5 or 1 day weekends. More often the conversations tend to have this...
After a couple of sessions of taking on more risk, investors are taking a break today. Equities are mostly lower today after the S&P 500’s six-day advance took it almost to its record high, while the...
In assessing the trajectory of Fed policy the market is discounting, we prefer using the Fed funds futures contracts over the Eurodollar futures. The Fed funds settle at the average effective rate, while the Eurodollar...
The global capital markets are subdued today as investors wrestle with the rising virus, the shifting stance of several central banks, and a more tense geopolitical backdrop. Equity markets are struggling today. Most of the...
The two recent market developments, push lower in stocks, and higher in the dollar is continuing. Tuesday’s gains in the S&P 500 and NASDAQ were unwound on Wednesday and this is helping drag global markets...
Economic Insights: It always makes one thoughtful when the main moves in financial markets are in sovereign bond yields. The 30-year US Treasury (‘long bond’ ) yield rose by 21ps to 1.44% in the week,...
The S&P 500 turning higher on the year was the last straw before an arguably overdue bout of profit-taking kicked-in and is the dominant feature today in the capital markets. It began slowly in the...
The US Secretary of State’s announcement that the autonomy of Hong Kong could no longer be affirmed did not derail the rally in US equities. However, the threat of an executive order against social media...
