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Marking Time Ahead of PMI and Powell

August 20, 2019
Overview:  Global equities and bonds are firmer in quiet turnover, and the dollar is narrowing mixed in narrow ranges.  The big events of the week, the eurozone flash PMI and Powell's speech at Jackson Hole still lie ahead.  The MSCI Asia Pacific Index rose for the third consecutive session, led by Korea and Australia's 1%+ gains.  Europe&…
Marking Time Ahead of PMI and Powell Marking Time Ahead of PMI and Powell Reviewed by Marc Chandler on August 20, 2019 Rating: 5
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The Hong Kong Dollar and the Goose that Laid the Golden Egg

August 19, 2019
The boldness and persistence of the demonstrators in Hong Kong have captured the attention of the world.  China has shown more restraint arguably than others would have demonstrated. So far it offers a stark contrast to Macron's response to the "Yellow Vest Movement" (des gilets jauner) in France, for example.  However, the last ac…
The Hong Kong Dollar and the Goose that Laid the Golden Egg The Hong Kong Dollar and the Goose that Laid the Golden Egg Reviewed by Marc Chandler on August 19, 2019 Rating: 5
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China's Rate Reform Helps Markets Extend End of Last Week Recovery

August 19, 2019
Overview: China announced some changes in its interest rate framework that is expected to lead to lower rates.  This helped lift equity markets, which were already recovering at the end of last week from the earlier drubbing.  Chinese and Hong Kong shares led the regional rally with 2-3% gains.  The Nikkei gapped higher for the third time in six s…
China's Rate Reform Helps Markets Extend End of Last Week Recovery China's Rate Reform Helps Markets Extend End of Last Week Recovery Reviewed by Marc Chandler on August 19, 2019 Rating: 5
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A Look at the Charts

August 18, 2019
The White House is unlikely to comment on it, even if it is aware that the Chinese yuan was the third strongest currency in the world last week.  The British pound was the strongest, rising a little less than 1% against the dollar and snapping a 14-week plummet against the euro.  None of the other major currencies appreciated against the dollar la…
A Look at the Charts A Look at the Charts Reviewed by Marc Chandler on August 18, 2019 Rating: 5
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A Vicious Cycle Grips Markets

August 17, 2019
The capital markets are in their own doom loop.  Poor data from  Germany and China, coupled with the escalation of the US-China trade dispute and rising tensions in Hong Kong spur concerns about the risks of a global recession.  Interest rates are driven lower, and curves flatten or go inverted, spurring more concern about the outlook.  The proble…
A Vicious Cycle Grips Markets A Vicious Cycle Grips Markets Reviewed by Marc Chandler on August 17, 2019 Rating: 5
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Markets Take Collective Breath Ahead of the Weekend

August 16, 2019
Overview:  The global capital markets are ending the tumultuous week calmly, but it is far from clear that is will hold long.  Next week's flash PMIs have potential to disappoint, and there is risk of new escalation in the US-China trade conflict as the PRC threatens to take action to countermeasures to the new US tariffs. Most equity markets …
Markets Take Collective Breath Ahead of the Weekend Markets Take Collective Breath Ahead of the Weekend Reviewed by Marc Chandler on August 16, 2019 Rating: 5
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Animal Spirits Lick Wounds

August 15, 2019
Overview:  It took some time for investors to recognize that the scaling back of US tariff plans was not part of a de-escalation agreement. There was an explicit acknowledgment by US Commerce Secretary Ross that there was no quid pro quo. The US tariff split was more about the US than an overture to China.  In fact, as China did in September whe…
Animal Spirits Lick Wounds Animal Spirits Lick Wounds Reviewed by Marc Chandler on August 15, 2019 Rating: 5
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Markets Paring Exaggerated Response to US Blink

August 14, 2019
Overview:  The US cut its list of Chinese goods that will be hit with a 10% tariff at the start of next month by a little roe than half, delaying the others until the mid-December.  This spurred a near-euphoric response by market participants throughout the capital markets.  However, as the news was digested, it did not seem as much of a game-chan…
Markets Paring Exaggerated Response to US Blink Markets Paring Exaggerated Response to US Blink Reviewed by Marc Chandler on August 14, 2019 Rating: 5
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