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Japan Goes on a Shopping Spree, but No Appetite for German Bunds

July 08, 2014
Japanese investors dramatically increased the export of their savings in May.  It was the second consecutive month that Japanese investors were net buyers of foreign stocks and bonds having been net sellers the previous four months. 
Japanese investors bought JPY2.98 trillion of foreign assets.  This is roughly 60% of the total portfolio investmen…
Japan Goes on a Shopping Spree, but No Appetite for German Bunds Japan Goes on a Shopping Spree, but No Appetite for German Bunds Reviewed by Marc Chandler on July 08, 2014 Rating: 5
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Four Things to Know on Tuesday

July 08, 2014
Within the context of relatively subdued markets, there are four developments to note today.

First, Japan reported larger than expected current account surplus for May, helped by a smaller trade deficit.  The May current account surplus rose to almost JPY523 bln, 20% larger than expected, after a JPY187.5 bln surplus in April.  The trade shortfall …
Four Things to Know on Tuesday Four Things to Know on Tuesday Reviewed by Marc Chandler on July 08, 2014 Rating: 5
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Exaggerating the Dollar's Demise

July 07, 2014
The headline of the Financial Times today reads "Paris rails against the dollar's dominance."  It could have been written nearly any time in the past half century.  Afterall it was a former French President Giscard d'Estaing, who as finance minister in the 1960s, complained about the "exorbitant privilege" that the US d…
Exaggerating the Dollar's Demise Exaggerating the Dollar's Demise Reviewed by Marc Chandler on July 07, 2014 Rating: 5
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Emerging Markets: The Week Ahead

July 07, 2014
(from my colleagues Dr. Win Thin and Ilan Solot)
It will be a busy week for EM with elections in Indonesia, the first budget by India’s new government and the decision by the Malaysian central bank for which markets are split about the prospects of a hike.
IDR seems to have already partially priced a victory by Widodo (market positive) but we think …
Emerging Markets: The Week Ahead Emerging Markets:  The Week Ahead Reviewed by Marc Chandler on July 07, 2014 Rating: 5
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Slow Start to Slow Week

July 07, 2014
As US traders return to their posts from a long holiday weekend, the dollar is little changed from where they left it on July 3, following the ECB meeting and the US employment data. While the euro and sterling are within a 10-15 pips from weaker, the yen is stronger, with the greenback surrendering the foothold above JPY102. The Canadian dollar…
Slow Start to Slow Week Slow Start to Slow Week Reviewed by Marc Chandler on July 07, 2014 Rating: 5
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Global Investment Climate: Pieces falling into Place

July 06, 2014
Investors learned last week that the US created 1.38 mln net new jobs in H1, the most for a six-month period since 2006. They learned that US vehicle sales in June also reached an 8-year high. For its part, the ECB emphasized that the TLTRO facility could inject around 1 trillion euros into the banking system for loans to businesses and household…
Global Investment Climate: Pieces falling into Place Global Investment Climate:  Pieces falling into Place Reviewed by Marc Chandler on July 06, 2014 Rating: 5
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Dollar Technicals not as Strong as Fundamentals

July 05, 2014
Leaving aside the defeat in the World Cup, last week was good for the US. Auto sales and US  jobs data were stronger than expected. These provided a nice sedative for some anxiety over the steep contraction in Q1 and the decline in real consumption in April and May.  
On the other hand, the euro zone PMIs were, well, meh. The ECB continues to empha…
Dollar Technicals not as Strong as Fundamentals Dollar Technicals not as Strong as Fundamentals Reviewed by Marc Chandler on July 05, 2014 Rating: 5
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