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 dramatic shift in expectations for Fed policy is a potent shock, with reverberations throughout the capital markets. The business press was full of accounts putting the nearly 50 bp decline in the US two-year...
China’s new initiatives to support the property sector helped lift the Hang Seng. And while the China’s CSI 300 edged higher both the Shanghai and Shenzhen composites fell. Most Asia Pacific markets fell, while Europe’s...
Asia Pacific bourses followed yesterday’s US loss, but after opening lower Europe’s Stoxx 600 has steadied. US futures are narrowly mixed ahead of the US jobs report. Benchmark 10-year yields are higher across the board....
It is commonly known that the dollar, the pound, the euro, and the yen dominate the world’s trade invoicing currencies. Regardless of origin and destination, exports and imports of nations frequently use these currencies, with...
Sterling’s pounding continued in Asia where it was driven to $1.0350, a new record low before stabilizing. UK rates also continued to rise sharply after the new government promised more tax cuts next year. The...
The market is a fickle mistress. The major central banks were judged to be behind the inflation curve. Much teeth-gashing, finger-pointing. Federal Reserve Chair Powell was blamed for denying that a 75 bp hike was under...
Hawkish comments by Fed Chair Powell stoked a jump in yields and lit the dollar. News that Alibaba was boosting its share buyback program to $25 bln from $15 bln helped lift HK shares, while...
Bold new sanctions on Russia and more weapons for Ukraine were announced over the weekend. Russia responded by raising the readiness of its nuclear forces. As a result, the risk-on seen ahead of the weekend...
Surging yields and plummeting equities are the main developments today. The US 10-year yield pushed above 1.80% and the two-year yield is above 1% for the first time since February 2020. European yields are pulling...
The central bank meeting cycle is over. Most of the important high-frequency data has been released until early January. The US debt ceiling has been lifted, avoiding an improbable default. A year ago, there was a sense...
The Fed’s hawkish pivot came a few weeks before yesterday’s FOMC meeting, which confirmed more or less what the market had already largely anticipated. Buy the (dollar) on rumors (of tapering and more aggressive stance...
