Tag Archives: China

Overview: The dollar fell most of last week but reversed higher before the weekend. It has seen some follow-through gains, albeit limited against most of the G10 currencies today. Despite some seemingly dovish comments by a few Fed officials last week, the Fed funds futures is pricing in the greatest chance for a hike at the early May meeting since the banking stress erupted last month. The greenback is also trading with a firmer bias against most emerging market...

Overview:  The market took US short-term rates and the dollar lower after the CPI data, which was largely in line with expectations. On the one hand, the odds of a quarter-point hike next month increased slightly (73.6% vs. 71.6%) to 5.25%, but it reinforced that sense that it is last hike and that the Fed will unwind this hike and more before the end of the year. The year-end implied policy rate fell by about six basis points to 4.33%. The dollar was sold against...

Overview: 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%. Several other markets in the region also gained more than 1%, including Australia and South Korea. China's CSI was an exception. It slipped fractionally. Europe's Stoxx 600 is up nearly 0.6% through the European morning, and bank...

Overview: The holiday continues. In the Asia Pacific region, Hong Kong, Australia, and New Zealand, and the Philippines markets were closed. The regional bourses advanced but China.  European markets remain closed. US equity futures are narrowly mixed. The 10-year US Treasury yield is off nearly three basis points to about 3.36%. The dollar is trading quietly mostly within ranges seen before the weekend. It is slightly softer against most of the G10 currencies, but...

Overview:  Activity throughout the capital markets remains light as most financial centers in Europe are closed for the Easter celebration. Hong Kong, Australia, New Zealand, and Indian markets were closed as well. Still, most of the equity markets in Asia Pacific advanced, led by South Korea's Kospi's nearly 1.3% advance. The market responded favorably to news that Samsung would cut its production of memory chips and shrugged off its smaller than expected profits....

Overview: 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 risk sentiment. Most of the large bourses in the Asia Pacific region fell, with Hong Kong and India notable exceptions. In Japan, the Topix bank index fell 1.1% after a 1.9% decline yesterday and is now lower on the week. Europe's Stoxx 600 is trying to snap a...

Overview: Financial strains eased yesterday, and short-term yields jumped. The two-year US yield jumped 25 bp to pierce 4%. Yet, the dollar fell against most of the major currencies yesterday and is mostly softer today. Banking stress is ebbing. The Topix bank index snapped a three-day decline and jumped nearly 2% today to recoup the lion's share of its three-day decline. The Stoxx 600 index of EMU banks is extending yesterday's 1,7% advance. The AT1 ETF up about...

Overview: There did not appear to be any negative surprises over the weekend, and this is helping calm investors' nerves at the start of the new week. Deutsche Bank shares have recovered most of the pre-weekend loss in the German market, and Stoxx bank index is posting a gain for the first time in four sessions. The AT1 ETF is slightly softer. In Japan, the Topix bank index slipped around 0.5%, its fourth decline in the past five sessions. Asia Pacific equities were...

Overview: The support for First Republic Bank shown by a consortium of US banks by shifting $30 bln of deposits is helping break the financial anxiety that has gripped the market for more than a week. The liquidity provisions for Credit Suisse by the Swiss National Bank also are contributing to improved sentiment. The Fed's balance sheet expanded sharply last week as the bridge banks were extended credit to help the unwind of SVB and Signature Bank. Discount window...

Overview: The capital markets remain unsettled. Asia-Pacific bourses rose, but European markets are sharply lower, with the Stoxx 600 off 1.3%, giving back the lion's share of yesterday's gains and US equity futures are lower. Benchmark 10-year yields are off 3-9 bp in Europe, with widening core-periphery yields. The yield on the 10-year US Treasury is off a dozen basis points to about 3.56%. Two-year yields are also sharply lower, led by the 15-16 bp decline in...