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US-China Escalation Sinks Hong Kong and Hits Risk Appetites

May 22, 2020
Overview: The US has ratcheted up pressure on China on several fronts and has sapped risk appetites ahead of the weekend.  Equity markets are lower across the world.  Even in India, where the central bank unexpectedly cut the repo rate 40 bp, shares fell 0.7%.  It was Hong Kong's 5.5% that led the region lower.  Europe's Dow Jones Stoxx 60…
US-China Escalation Sinks Hong Kong and Hits Risk Appetites US-China Escalation Sinks Hong Kong and Hits Risk Appetites Reviewed by Marc Chandler on May 22, 2020 Rating: 5
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Markets Pull Back after Flirting with Breakouts

May 21, 2020
Overview: New two and a half month highs in the S&P 500 yesterday failed to have much sway in the Asia Pacific region and Europe today as US-China tensions escalate and profit-taking set in. Perhaps it is a bit of "buy the rumor sell the fact" type of activity on the back of upticks in the preliminary PMI reading and hesitancy about …
Markets Pull Back after Flirting with Breakouts Markets Pull Back after Flirting with Breakouts Reviewed by Marc Chandler on May 21, 2020 Rating: 5
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Fed Funds Futures No Longer Imply Negative Rates

May 20, 2020
Overview: Another late sell-off of US equities, ostensibly on questions over Moderna's progress on a vaccine, failed to deter equity gains in the Asia Pacific region. China was a notable exception, but the MSCI Asia Pacific Index rose for the fourth consecutive session. European shares are little changed, but reflects a split. On the one hand,…
Fed Funds Futures No Longer Imply Negative Rates Fed Funds Futures No Longer Imply Negative Rates Reviewed by Marc Chandler on May 20, 2020 Rating: 5
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Optimism Burns Eternal

May 19, 2020
Overview: Hopes for a vaccine and a German-French proposal to break the logjam at the EU for a joint recovery effort helped propel equities higher yesterday. There was strong follow-through in the Asia Pacific region, where most markets advanced by more than 1% today. However,  the bloom came off the rose, so to speak, in Europe. After a higher op…
Optimism Burns Eternal Optimism Burns Eternal Reviewed by Marc Chandler on May 19, 2020 Rating: 5
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Yuan Slumps as US-Chinese Tensions Rise

May 18, 2020
Overview: Despite somber warnings that the US economic recovery can stretch to the end of next year, investors have begun the new week by taking on new risks. Most equity markets in the Asia Pacific region rose, with Australia leading the large bourses with a 1% gain. India was an outlier, suffering a 2.4% loss, and Taiwan's semiconductor sect…
Yuan Slumps as US-Chinese Tensions Rise Yuan Slumps as US-Chinese Tensions Rise Reviewed by Marc Chandler on May 18, 2020 Rating: 5
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What do the Charts say about Risk Appetites?

May 17, 2020
The US dollar was generally stronger last week. The dollar-bloc currencies and sterling bore the most weight. Decreased appetites for risk, illustrated by losses in the major equity benchmarks, seemed to have played a role. Sterling fell every day last week to reach its lowest level since late March ahead of the weekend. While there was discussion…
What do the Charts say about Risk Appetites? What do the Charts say about Risk Appetites? Reviewed by Marc Chandler on May 17, 2020 Rating: 5
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Will PMIs Show Economies Hit Bottom? Are US-China Tensions Rising Again?

May 16, 2020
March was when the markets froze up. Many, including myself, thought closing the markets was possible as has been done during other big shocks and without jeopardizing the reputation of exchanges or officials. Central banks and governments around the world began responding in earnest to the impact of economic shutdowns the market disruptions. The …
Will PMIs Show Economies Hit Bottom? Are US-China Tensions Rising Again? Will PMIs Show Economies Hit Bottom? Are US-China Tensions Rising Again? Reviewed by Marc Chandler on May 16, 2020 Rating: 5
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Much Talk but Little Action

May 15, 2020
Overview: The S&P 500 staged an impressive recovery yesterday, a sell-off that took it to its lowest level since April 21, to close more than 1% higher on the day, helped set the tone in the Far East and Europe today. Gains in most Asia Pacific markets, but Hong Kong, Shanghai, and India, trimmed this week's losses. Australia's 1.4% ra…
Much Talk but Little Action Much Talk but Little Action Reviewed by Marc Chandler on May 15, 2020 Rating: 5
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Risk Appetites Wane

May 14, 2020
Overview: Risk appetites have been gradually waning this week. US equity losses mounted yesterday after Tuesday's late sell-off. Asia Pacific equities were off, with many seeing at least 1.5% drops. Europe's Dow Jones Stoxx 600 is off a little more to double this week's decline and leaves it in a position to be the biggest drop since p…
Risk Appetites Wane Risk Appetites Wane Reviewed by Marc Chandler on May 14, 2020 Rating: 5
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