Chinese CPI and PPI
Equities Open Lower after Big Rise Last Week.. Dollar Recovers on Risk Aversion
January 11, 2021
The dollar climbed overnight by 1.1% against the Mexican peso, 0.7% relative to the Swiss franc, sterling, and Canadian, Australian and New Zealand dollars, 0.5% versus the euro, and 0.3% vis-a-vis the yen (to a 5-week high above 104.0). The trade-weighted dollar move was +0.5%. U.S. equities have fallen 0.6-0.8% in futures trading. Share prices […] More
Covid Concerns, U.S. Political Tensions, Disinflation, and Weak Demand
November 10, 2020
Yesterday’s vaccine news spurred a stock market rally, but pandemic prospects remain poor until vaccines and therapeutic treatments are widely available. The public is being warned of a grim winter just ahead. New global Covid cases topped half a million yesterday, including a fresh record U.S. number exceeding 130k. U.S. hospitalizations are hovering near 60k. […] More
The Cavalry Isn’t Coming… Investors Are on Their Own
October 15, 2020
U.S. Treasury Secretary Mnuchin concedes that a fiscal stimulus deal before the election isn’t going to get done, and there’s little reason to expect the dynamics to shift after November 3rd. Central bankers, whose policies are hitting diminishing returns, have been pleading for more forceful fiscal support. The Dallas Fed President said displaced workers will […] More
Markets Pausing for Next Big Theme
September 9, 2020
Equities recorded further considerable losses in Pacific Rim trading overnight but have stabilized in Europe. Share prices closed down 1.9% in China, 2.2% in Australia, 1.3% in Indonesia, 1.1% in South Korea and 1.4% in New Zealand. But the Swiss and German markets have rebounded 0.6%, and those in the U.K. and France are up […] More
Week Starts Slowly for the Dollar
August 10, 2020
Net dollar changes since the pre-weekend close have been insignificant against other major currencies. Markets are closed today for holiday in Japan and Singapore. Share prices are mostly firmer. So too are the prices of WTI oil (1.5%) and gold (0.7%). But ten-year sovereign debt yields are down two basis points in Germany and the […] More
Markets Unsure of Implications of Reopening Economies
May 12, 2020
Markets seems to have entered an indecisive phase as politicians weigh pros and cons of reopening business activities. The dollar lost modest ground overnight, falling 0.2% against the yuan, yen, euro and sterling and by 0.1% relative to the Swiss franc. The dollar fell more significantly against the kiwi (0.6%) and Australian dollar (0.4%) but […] More
Comparatively Steady Dollar to Start Week
February 10, 2020
The dollar is unchanged from Friday closing levels against the yen, Swiss franc, loonie, and kiwi, and it has edged a mere 0.1% lower relative to the euro, Aussie dollar and peso. Bigger drops can be seen of 0.3% versus the yuan and 0.4% relative to sterling. Share prices fell 0.5-0.8% in a number of […] More
Many Data Releases… Stock Prices Up
January 9, 2020
A mixed dollar overnight leaves the U.S. currency unchanged against the euro, up 0.5% versus the kiwi, 0.4% relative to sterling, 0.3% vis-a-vis the yen, 0.2% against the loonie and 0.1% versus the Aussie dollar but down 0.2% against the yuan and peso and 0.1% softer versus the Swiss franc. Share prices advanced 2.3% in […] More
Confusion on Many Fronts
October 15, 2019
Details of the Phase I trade deal that U.S. President Trump proclaimed last week remain vague, and it’s unclear even if the Chinese and U.S. negotiators reached any kind of common ground to commit to writing. The pendulum of investor expectations about where trade talks are heading continues to swing wildly by the day and […] More
Safe Haven Assets in Lessening Demand
September 10, 2019
Some of the recent uncertainties for investors seem somewhat less anxiety-provoking. British Prime Minister Boris Johnson seems to now be intent on working out a Brexit deal with the EU instead of a no-deal exit. Reports have surfaced that the Merkel government in Germany is considering a relaxation of its rigid insistence on balancing the […] More
