Tag Archives: China

Swiss Franc The Euro has risen by 0.12% at 1.1099 EUR/CHF and USD/CHF, June 24(see more posts on EUR/CHF and USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The Trump-Xi meeting at the G20 this coming weekend and heightened tensions in the Gulf, with the US set to impose new sanctions on Iran’s crippled economy are keeping investors on edge. News the opposition won the re-do of the...

Swiss Franc The Euro has risen by 0.30% at 1.1115 EUR/CHF and USD/CHF, June 21(see more posts on EUR/CHF and USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The global capital markets are trading quietly ahead of the weekend. Equity markets are mostly narrowly mixed. Chinese shares extended their run, and the major benchmarks were up 4%+ on the week. Japan, Australia, South Korea, and...

To stabilise growth, the Chinese government will likely put more focus on infrastructure investment. A new policy announced recently could give a further boost to this sector. Activity data in May point to continued weakness in Chinese economic momentum, with growth in both fixed-asset investment and industrial production slowing last month. The only positive news came from retail sales, where growth picked up after the...

Swiss Franc The Euro has fallen by 0.21% at 1.1169 EUR/CHF and USD/CHF, June 19(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Risk-taking was bolstered by the dramatic shift in Draghi’s rhetoric less than two weeks after the ECB meeting and a Trump’s tweet announcing that there was going to be an “extended” meeting between him and Xi at the G20 meeting and that...

Inflation always brings out an emotional response. Far be it for me to defend Economists, but their concept is at least valid – if not always executed convincingly insofar as being measurable. An inflation index can be as meaningful as averaging the telephone numbers in a phone book (for anyone who remembers what those things were). If you spend $1,000 a month on food for your family, and food prices rise 6% generally...

The week ahead is likely to provide some clarification for investors on three fronts that have been a source of uncertainty. The FOMC meeting, with updated forecasts, is center stage. The credit markets are pushing the Fed to be aggressive but can be disappointed. In the eurozone, the preliminary PMI may confirm a modest, even if uneven recovery. The G20 summit is the focus of much attention as many see it as the last...

As noted earlier this week, the world’s two big hopes for the global economy in the second half are pinned on the US labor market continuing to exert its purported strength and Chinese authorities stimulating out of every possible (monetary) opening. Incoming data, however, continues to point to the fallacies embedded within each. The US labor market is a foundation of non-inflationary sand, and China’s “stimulus” is...

Commodity prices continued to fall last month. According to the World Bank’s Pink Sheet catalog, non-energy commodity prices accelerated to the downside. Falling 9.4% on average in May 2019 when compared to average prices in May 2018, it was the largest decline since the depths of Euro$ #3 in February 2016. Base metal prices (excluding iron) also continue to register sharp reductions. Down 16% on average last month,...

Swiss Franc The Euro has risen by 0.08% at 1.125 EUR/CHF and USD/CHF, June 12(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The S&P 500 snapped a five-day advance yesterday and set the heavier tone for equities today. Continued protests in Hong Kong were not shrugged off as they have been in the last couple of sessions. The Hang Seng’s nearly 1.9% decline was...

In what has become a four-part series, we are looking at the monetary science of China’s potential strategy to nuke the Treasury bond market. In Part I, we gave a list of reasons why selling dollars would hurt China. In Part II we showed that interest rates, being that the dollar is irredeemable, are not subject to bond vigilantes. In Part III, we took on the Quantity Theory of Money head-on, and showed the...