Poor European flash PMI pushed on open door, giving the market a new reason to do what it was doing and that buying the dollar. The euro has approached important support around $1.08 and sterling...
The Fed’s hawkish hold and signal that it may raise rates two more time this year sent ripples through the capital markets. Risk appetites have been dealt a blow. However, China’s rate cut and likely...
The back-to-back surprise rate hikes by the Australia and Canada spurred speculation that the Fed could hike next week, and this lifted US rates and helped the dollar recover. The odds of a hike increased,...
Some creeping optimism about the US debt ceiling, easing of pressure on bank shares, and a continued rise in US rates helped the dollar extend its recent recovery. Over the past two weeks or so,...
The market sentiment remains fragile. Equities are mostly lower. Japan was a notable exception, and concerns about China’s economy after a sharp decline in imports took mainland and Hong Kong listed companies sharply lower. Europe’s...
A combination of a surprisingly strong prices paid component to the US manufacturing PMI, corporate supply, and US debt woes spurred an almost 15 bp spike in the US 10-year yield and 13 bp jump...
Perhaps it was the extent of First Republic Bank’s loss of deposits that were reported with earnings yesterday, but risk appetites dried up today. Asia Pacific equities were trounced outside Japan today. Hong Kong and...
As the long-holiday ends, risk appetites have returned. Equities and yields are mostly higher. The dollar is seeing yesterday’s gains pared. Yesterday’s setback in the yen helped lift Japanese stocks, with the Nikkei advancing 1%....
There is a fragile calm in the capital markets today ahead of the long holiday weekend for many. The poor US economic data yesterday and third consecutive decline in the KBW bank index weighed on...
The market has concluded that the Fed will hike rates today. The US two-year yield has risen from about 3.63% at Monday’s lows almost 4.20% yesterday. It needs to rise to 4.35% to recover half...
The focus is on the US CPI report today, but the price action is anything but intuitive. Although the revisions of the basket and methodological changes reinforce expectations for the largest rise in three months,...
The focus is squarely on the Federal Reserve today. There is nearly universal agreement that it will lift the target by 25 bp. The market is inclined to see the shift as a sign that...
