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Greenback Demand Not Satisfied by Swap Lines

March 23, 2020
Overview: In HG Wells' "War of the Worlds," the common cold repelled a Martian invasion. Now, a novel coronavirus is disrupting everything and everywhere. Global equities continue to get hammered, though the apparent relative resilience of Japan may have spurred some buying of Japanese equities. Both the Nikkei and Topix posted gains…
Greenback Demand Not Satisfied by Swap Lines Greenback Demand Not Satisfied by Swap Lines Reviewed by Marc Chandler on March 23, 2020 Rating: 5
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High Anxiety is Auto-Correlated

March 22, 2020
The economic and financial reaction to the global pandemic has triggered a surge in the US dollar, which itself may amplify the disruption that is evident throughout the capital markets.  The macro analysis piece (The Economic Tsunami that has Begun and the Drive for Cash) focuses on the fundamental considerations behind the greenback's surge.…
High Anxiety is Auto-Correlated High Anxiety is Auto-Correlated Reviewed by Marc Chandler on March 22, 2020 Rating: 5
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The Economic Tsunami that has Begun and the Drive for Cash

March 21, 2020
With swarms of locusts in Africa and the Middle East and a particularly virulent virus spreading around the globe, the coming crisis may feel like the end of days. An economic tsunami has been unleashed. A consensus appears to be emerging among economists of the largest contraction in global GDP in a generation. Separately, but partly related as w…
The Economic Tsunami that has Begun and the Drive for Cash The Economic Tsunami that has Begun and the Drive for Cash Reviewed by Marc Chandler on March 21, 2020 Rating: 5
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Markets Ending the Week on Better Note

March 20, 2020
Overview:  Dramatic price action continues but in the other direction.  Stocks and bonds have rallied strongly, and the US dollar is snapping a strong advance with a sharp and broad setback.  The immediate trigger is hard to identify.  Some accounts linking it to fears that the California shutdown will be repeated throughout the country, deepening…
Markets Ending the Week on Better Note Markets Ending the Week on Better Note Reviewed by Marc Chandler on March 20, 2020 Rating: 5
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ECB's Bazooka Support Bonds but not the Euro

March 19, 2020
Overview: It is not just that the dollar soared while stocks and bonds continued to plunge.  The dollar's strength is, in effect, a powerful short-covering rally.  It was used to fund a great part of the global circuit of capital.  The circuit of capital is in reverse now, and the funding currency is being bought back. The dollar's strengt…
ECB's Bazooka Support Bonds but not the Euro ECB's Bazooka Support Bonds but not the Euro Reviewed by Marc Chandler on March 19, 2020 Rating: 5
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Bonds Join Equities in the Carnage

March 18, 2020
Overview: A new phase of the market turmoil is at hand. Bonds are no longer proving to be the safe haven for investors fleeing stocks. The tremendous fiscal and monetary efforts, with more likely to come, have sparked a dramatic rise in yields. Meanwhile, equities are getting crushed again. Steep losses were seen in many Asia Pacific markets, with…
Bonds Join Equities in the Carnage Bonds Join Equities in the Carnage Reviewed by Marc Chandler on March 18, 2020 Rating: 5
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Even Turn Around Tuesday is Flat

March 17, 2020
Overview:  While the markets are not as disorderly as they have been, the tone is fragile, and the animal spirits have been crushed.  Australian stocks fell more than 10% last week and dropped another 9.7% yesterday before rebounding by almost 6% today to be one of the few Asia Pacific equity markets to rise.  The Nikkei eked out a small gain, but…
Even Turn Around Tuesday is Flat Even Turn Around Tuesday is Flat Reviewed by Marc Chandler on March 17, 2020 Rating: 5
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Monday Blues: Fed Moves Bigly and Stocks Slump

March 16, 2020
Overview: The Federal Reserve and central banks in the Asia Pacific region acted forcefully, but were unable to ease the consternation of investors. The Reserve Bank of New Zealand cut key rates by 75 bp. The Bank of Japan appears to have doubled its ETF purchase target to JPY12 trillion, and the Reserve Bank of Australia is preparing for new meas…
Monday Blues: Fed Moves Bigly and Stocks Slump Monday Blues: Fed Moves Bigly and Stocks Slump Reviewed by Marc Chandler on March 16, 2020 Rating: 5
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