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Market has Second Thoughts on Magnitude of Fed Cuts Ahead of Powell

August 23, 2019
Overview:  Powell speech at Jackson Hole stands before the weekend.  Equities in Asia and Europe are finishing the week on a firm tone.  Most markets in the Asia Pacific region closed higher today, and the MSCI Asia Pacific Index snapped a four-week slide.  European bourses are edging higher, and the Dow Jones Stoxx 600 is poised to end its three-…
Market has Second Thoughts on Magnitude of Fed Cuts Ahead of Powell Market has Second Thoughts on Magnitude of Fed Cuts  Ahead of Powell Reviewed by Marc Chandler on August 23, 2019 Rating: 5
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G7 to Deliver a Nothing Burger

August 22, 2019
A Bloomberg article about the weekend G7 meeting says, "multilateralism is dead."  An op-ed in the Financial Times suggests that the most important political alliance may be "rejuvenated" at the G7 meeting.  The truth is likely found somewhere in between.  Economic nationalism, personalities of (some of) the leaders are not co…
G7 to Deliver a Nothing Burger G7 to Deliver a Nothing Burger Reviewed by Marc Chandler on August 22, 2019 Rating: 5
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Tick Up in EMU PMI Does Little, Waiting for Powell

August 22, 2019
Overview:  Soft data in Asia and the continued decline in the yuan (six days and counting) prevented Asian equities from following the US lead from yesterday when the S&P 500 advanced by 0.8%. European shares are paring yesterday's 1.2% advance despite an unexpected gain in the EMU flash PMI.  US shares are little changed in the European m…
Tick Up in EMU PMI Does Little, Waiting for Powell Tick Up in EMU PMI Does Little, Waiting for Powell Reviewed by Marc Chandler on August 22, 2019 Rating: 5
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European Stocks Snap Back, Market Hopeful Italian Election can be Delayed

August 21, 2019
Outlook:  The end of the US equity three-day advance yesterday weighed on Asia Pacific shares today.  Most benchmarks fell.  Better than expected trade data helped Thailand buck the trend.  A firmer tone emerged in the European morning, and the Dow Jones Stoxx 600 has recouped yesterday's losses and more.  It was led higher by consumer discret…
European Stocks Snap Back, Market Hopeful Italian Election can be Delayed European Stocks Snap Back, Market Hopeful Italian Election can be Delayed Reviewed by Marc Chandler on August 21, 2019 Rating: 5
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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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