Tag Archives: China

Overview: Yesterday’s retreat in US indices was part of and helped further this bout of profit-taking. The MSCI Asia Pacific Index ended an eight-day advance yesterday and fell further today. Japanese indices, which had set multiyear highs, fell for the first time in nine sessions. Hong Kong led the regional slide with a 2.3% decline as China’s crackdown on the gaming industry continued. Some companies in this space were reportedly to enforce the limits on minors,...

Inflation is sustained monetary debasement – money printing, if you prefer – that wrecks consumer prices. It is the other of the evil monetary diseases, the one which is far more visible therefore visceral to the consumers pounded by spiraling costs of bare living. Yet, it is the lesser evil by comparison to deflation which insidiously destroys the labor market from the inside out. You see inflation around you; anyone can only tell deflation by hopefully noticing and...

Swiss Franc The Euro has fallen by 0.20% to 1.072 EUR/CHF and USD/CHF, August 17(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Concern about the economic impact of the virus and new efforts by China to curb “unfair” competition among online companies has triggered a dramatic response by investors. A lockdown in New Zealand and the Reserve Bank of Australia signaling it will respond if the economic fallout...

Overview: 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 large bourses in the Asia Pacific region, including Japan, China, Hong Kong, and Taiwan, moved lower, and Europe's Dow Jones Stoxx 600 threatens to snap an eight-session advance.  US futures are narrowly mixed.   The US 10-year yield...

 Overview: The US dollar remains firm ahead of the July CPI release, and even though Chicago Fed Evans demurred from the hawkish talk, the market is getting more comfortable with the idea of a rate hike next year.   The implied yield of the December 2022 Eurodollar futures is rising for the sixth consecutive session.  Most emerging market currencies are also under pressure.  The JP Morgan Emerging Market Currency Index edged up yesterday to snap a five-day drop but...

Overview:  A flash crash saw gold drop more than $70 an ounce in early Asia. Silver was dragged lower too.  The precious metals have stabilized at lower levels, but it signals a rough adjustment to a higher interest rate environment as a hawkish BOE and strong US employment data suggest peak monetary stimulus is at hand.  The dollar is broadly mostly firmer against the major and emerging market currencies.  The JP Morgan Emerging Market Currency Index is lower for...

In a CEPR discussion paper, Anna Gelpern, Sebastian Horn, Scott Morris, Brad Parks, and Christoph Trebesch document “How China Lends: A Rare Look into 100 Debt Contracts with Foreign Governments:” China is the world’s largest official creditor, but we lack basic facts about the terms and conditions of its lending. … We collect and analyze 100 contracts between Chinese state-owned entities and government borrowers in 24 developing countries … First, the Chinese contracts contain...

Overview: US interest rates and the dollar turned higher following comments by the Fed's Vice Chairman Clarida, who appeared to throw his lot with the more hawkish members. The dollar recovered from weakness that had seen it fall to almost JPY108.70, its lowest level since late May, and lifted the euro to $1.19.  Still, there has been little follow-through dollar or Treasury buying today.  The euro and yen are marginally softer, but most other major currencies post...

Swiss Franc The Euro has risen by 0.08% to 1.0828 EUR/CHF and USD/CHF, July 22(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The rally in US shares yesterday, ostensibly fueled by strong earnings reports, is helping to encourage risk appetites today. The MSCI Asia Pacific Index is posting its biggest gain in around two weeks, though Japan’s markets are closed today and tomorrow. The Dow Jones Stoxx 600 is...

Swiss Franc The Euro has fallen by 0.18% to 1.0837 EUR/CHF and USD/CHF, July 21(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The biggest rally in US equities in four months has helped stabilize global shares today. In the Asia Pacific region, Japan, China, and Australian markets advanced. Led by information technology and consumer discretionary sectors, Europe’s Dow Jones Stoxx 600 is up around 1.35% near the...