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Nervous Calm in the Capital Markets

November 12, 2020
Overview:   There is a nervous calm in the capital markets today.  The equity rally in the Asia Pacific region stalled to end an eight-day rally, though the Nikkei's rally remains intact.  The Dow Jones Stoxx 600 in Europe is consolidating near eight-month highs visited yesterday, and US shares mixed, with the NASDAQ futures a little higher an…
Nervous Calm in the Capital Markets Nervous Calm in the Capital Markets Reviewed by Marc Chandler on November 12, 2020 Rating: 5
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Reduced Risk of Negative Policy Rates Lifts Sterling and the Kiwi

November 11, 2020
Overview:  Investors are trying to figure out the impact of the likelihood of a vaccine. One thing that has happened is that the market perceives less chance that the UK or New Zealand will adopt negative rates, and their respective currencies are adjusting higher.  Meanwhile, the equity rally is continuing in Asia and Europe.  The MSCI Asia Pacif…
Reduced Risk of Negative Policy Rates Lifts Sterling and the Kiwi Reduced Risk of Negative Policy Rates Lifts Sterling and the Kiwi Reviewed by Marc Chandler on November 11, 2020 Rating: 5
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Markets Remain Unsettled

November 10, 2020
Overview: Pfizer's vaccine announcement eclipsed the US election as the key market driver.  It spurred the unwinding of Covid trades in terms of sectors and yields.  Emerging market currencies and the majors that benefit from world growth outperformed the perceived safe-havens, like the yen and the Swiss franc.  The euro rose above $1.19 brief…
Markets Remain Unsettled Markets Remain Unsettled Reviewed by Marc Chandler on November 10, 2020 Rating: 5
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Markets are not Waiting for Official Closure in the US

November 09, 2020
Overview:  The new week has begun with robust risk appetites, driving stocks and stocks higher and sending the dollar broadly lower.  Nearly all the equity markets in the Asia Pacific region gained more than 1%, except Malaysia and Indonesia.  The Nikkei, which posted its highest close before the weekend in almost 30 years, rallied another 2.1% to…
Markets are not Waiting for Official Closure in the US Markets are not Waiting for Official Closure in the US Reviewed by Marc Chandler on November 09, 2020 Rating: 5
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Bears Drive the Greenback Lower, but was it Too Quick?

November 08, 2020
The US dollar had one of its worst weeks of the year.  The Dollar Index, heavily weighted toward Europe, fell around 1.7%.  The greenback fell against all the majors, from 1.2% versus the yen to 4% against the Norwegian krone and 3% against the Australian dollar.  Many participants were caught wrong-footed by the dollar's drop and the sharp dr…
Bears Drive the Greenback Lower, but was it Too Quick? Bears Drive the Greenback Lower, but was it Too Quick? Reviewed by Marc Chandler on November 08, 2020 Rating: 5
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Now What?

November 07, 2020
The dollar fell hard last week.  After several failed attempts, it broke below JPY104 for the first time in eight months.  Despite Beijing's ostensible efforts to moderate the yuan's upside pressure through various administrative policy adjustments, it reached new two-year highs.  The Mexican peso, the second most actively traded emerging …
Now What? Now What? Reviewed by Marc Chandler on November 07, 2020 Rating: 5
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A Pause that Refreshens?

November 06, 2020
Overview:  Investors have piled into risk assets this week, seemingly undeterred by the US elections' lack of a clear outcome.  The coronavirus is still surging, and a new complication has emerged.  A mutation of the virus, originating in minks (Denmark), could pose a challenge in developing a vaccine.  MSCI Asia Pacific Index rose for the fif…
A Pause that Refreshens? A Pause that Refreshens? Reviewed by Marc Chandler on November 06, 2020 Rating: 5
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The Dollar Slides and the Yuan Jumps

November 05, 2020
Overview: The markets did not wait for the final vote count and took stocks and bonds higher while pushing the greenback lower. While it appears Biden will be the next US President, investors seemed to like the fact that his agenda will be checked by a Senate that may remain in Republican hands.  Stocks are on a tear.  Led by more than a 3% advanc…
The Dollar Slides and the Yuan Jumps The Dollar Slides and the Yuan Jumps Reviewed by Marc Chandler on November 05, 2020 Rating: 5
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Indecision Keeps Investors on Edge, but the Dollar Rides High

November 04, 2020
Overview:  Initially, the markets built on Tuesday's price action, but as soon as a few counties in Florida indicated that it was not going to be the "blue wave," risk came off, and it was most evident in the bond and currency markets. Equities rallied in the Asia Pacific area, and all but Hong Kong, Australia, and Indonesia advanced…
Indecision Keeps Investors on Edge, but the Dollar Rides High Indecision Keeps Investors on Edge, but the Dollar Rides High Reviewed by Marc Chandler on November 04, 2020 Rating: 5
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