Tag Archives: china
NFP herding us to No Mans Land
Better industrial data out of China and the surprising ISM print in the US has every, already confused trader, becoming ‘more lost’ in whatever convictions they have left. At least we have the NFP crap-shoot still to come, that is bound to surprise. Continue reading
Noda Yen for me thank you
Its fear that is driving capital markets, the kind of thing that may reinforce the idea of a double-dip recession, not fundamentals or technical’s. An Irish downgrade three-months ago would have sunk the EUR, instead the German Ifo survey rising to a three-year high this morning, is tentatively convincing the market that ‘their’ economy will not lose as much momentum as believed Continue reading
Bring back the EUR conviction or the Eureka light bulb
What happened to the well received German and Portuguese debt auctions? Were they not supposed to instill ‘positive confidence’ into this market? Continue reading
Raise Rates Now!
Or so exclaimed BOE policy maker Andrew Sentence, as the lone dissenter of the UK Monetary Policy Committee. The minutes from the rate policy meeting were released and were surprisingly hawkish, as the committee was “surprised” by recent economic strength and the fact that inflation has remained above the government target of 3%. The market will be closely watching economic data coming out of the UK in the ensuing weeks for signs that UK economic strength may bring about a rate hike at the next meeting. Otherwise, today is largely devoid of market-moving news. Yesterday the US stock market rallied after last week’s sell-off on the back of good corporate earnings and decent economic data. The Nikkei followed suit overnight, but the Yen broke from its usual inverse correlation, and is actually sporting strength this morning. So a pullback or pause after yesterday’s rally would not be uncommon, but there is little news that would cause a sentiment shift. Continue reading
Bank of Japan you are costing us money
Oh, can’t you feel the relief? No double dip! Yields and stocks soared yesterday. Don’t bet too heavily on it Continue reading
China Turns Bearish on US, Buys Yen, Euros
In what could foreshadow the future composition of world currency reserves, domestic US investors now hold the majority of America’s debt. According to the latest information from the US Treasury department, for the first time in three years, American financial institutions and private citizens owned more of America’s debt, than did foreign investors Continue reading
Investor Sentiment hits 16-month low
German investor confidence dropped more than forecast to a 16-month low in August, suggesting economic growth will slow from the record-breaking pace set in the second quarter. The Mannheim-based ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict developments six months ahead, fell to 14 from 21.2 in July, its fourth straight decline Continue reading
US and China to collide over currency
The yuan dropped at the fastest pace in almost two years last week and is now 1.8pc lower against a basket of currencies than in June, when Beijing announced the end to its fixed peg against the dollar. Western economists had seen yuan liberalisation as a sign that China is abandoning its mercantilist policy in a step-by-step move towards a floating currency, which was expected to rise Continue reading
Obama Gets cheap financing
Bond investors seeking top-rated securities face fewer alternatives to Treasuries, allowing President Barack Obama to sell unprecedented sums of debt at ever lower rates to finance a $1.47 trillion deficit. While net issuance of Treasuries will rise by $1.2 trillion this year, the net supply of corporate bonds, mortgage-backed securities and debt tied to consumer loans may recede by $1.3 trillion, according to Jeffrey Rosenberg, a fixed-income strategist at Bank of America Merrill Lynch in New York. Shrinking credit markets help explain why some Treasury yields are at record lows even after the amount of marketable government debt outstanding increased by 21 percent from a year earlier to $8.18 trillion. Continue reading
JPY intervention 15-years later
Verbal threats are never idle and we are hearing more and more of them from various interested parties. Continue reading