Edit

China's Expansion Does not Prevent Deflation

February 10, 2021
Overview:  Despite a soft close in US indices yesterday, global shares are on the march again today.  Led by China and Hong Kong, most large markets in the Asia Pacific region advanced today.  Officials gave approval for a new game from Tencent, which helped lift the Hang Seng.  Europe's Dow Jones Stoxx 600 slipped fractionally yesterday but h…
China's Expansion Does not Prevent Deflation China's Expansion Does not Prevent Deflation Reviewed by Marc Chandler on February 10, 2021 Rating: 5
Edit

Diamonds Don't Just have to be a Girl's Best Friend

February 09, 2021
I fully get that many savers are looking for an alternative to stocks and bonds, which seem terribly over-valued. There are almost $16 trillion of negative-yielding bonds in the world.  Despite the rise in the US 10-year bond, the yield is below the current rate of inflation.  What appears to be a mostly liquidity-driven rally has lifted equity va…
Diamonds Don't Just have to be a Girl's Best Friend Diamonds Don't Just have to be a Girl's Best Friend Reviewed by Marc Chandler on February 09, 2021 Rating: 5
Edit

Players are Not Buying Everything Today

February 09, 2021
Overview:  The rally of US benchmarks to new record highs helped lift most Asia Pacific markets today, but the bulls are pausing in Europe, and there has been little follow-through buying of US shares.  Australia, South Korea, and Indonesia did not participate in today's regional advance led by a 2% rally in China's main indices. Most Euro…
Players are Not Buying Everything Today Players are Not Buying Everything Today Reviewed by Marc Chandler on February 09, 2021 Rating: 5
Edit

Limited Follow-Through Dollar Selling to Start the Week

February 08, 2021
Overview: The US dollar has drifted higher against the major currencies and most of the freely accessible emerging market currencies, paring the losses seen before the weekend in response to the disappointing employment report. Easing pressure from the pandemic as the surge in cases after the holidays may also be encouraging risk-taking to extend …
Limited Follow-Through Dollar Selling to Start the Week Limited Follow-Through Dollar Selling to Start the Week Reviewed by Marc Chandler on February 08, 2021 Rating: 5
Edit

A Correction within a Correction

February 07, 2021
The disappointing US jobs data may mark the end of the first phase of the dollar's recovery.  It may be like the US phase 1 deal from China. Many wonder if there will be another phase. We suspect that the employment data is not a game-changer. On the one hand, the divergence of economic activity between the US, Europe, and Japan, on the other,…
A Correction within a Correction A Correction within a Correction Reviewed by Marc Chandler on February 07, 2021 Rating: 5
Edit

Macro for the Week Ahead and How Oil is Abetting Inflation Expectations

February 06, 2021
Sometimes officials call for the foreign exchange market to reflect fundamentals as if they can do anything but.  As businesses and investors, we are more interested in which fundamentals are driving prices than some academic debate over what fundamental considerations ought participants emphasize.  Data from Q4 may be dated and may not move anyon…
Macro for the Week Ahead and How Oil is Abetting Inflation Expectations Macro for the Week Ahead and How Oil is Abetting Inflation Expectations Reviewed by Marc Chandler on February 06, 2021 Rating: 5
Edit

Position Squaring Weighs on the Dollar Ahead of the Jobs Report

February 05, 2021
Overview:  While equities continue to march higher, the dollar is softer amid position squaring ahead of the US jobs data.  Gold has stabilized after yesterday's shellacking.  Estimates for US nonfarm payrolls appear to have been creeping higher, encouraged by the ADP, PMI, and weekly initial jobless claims.  A robust report today could bolste…
Position Squaring Weighs on the Dollar Ahead of the Jobs Report Position Squaring Weighs on the Dollar Ahead of the Jobs Report Reviewed by Marc Chandler on February 05, 2021 Rating: 5
Edit

Negative Rates and the Bank of England: Having Your Cake and Eating it Too

February 04, 2021
Overview:  The euro has been sold through $1.20 for the first time since December 1 and has now given back roughly half of the gains scored from the US election (~$1.16) to the early January high (~$.1.2350).  More broadly, the greenback is bid against most of the major currencies, with the Australian dollar more resilient after reported record ir…
Negative Rates and the Bank of England: Having Your Cake and Eating it Too Negative Rates and the Bank of England: Having Your Cake and Eating it Too Reviewed by Marc Chandler on February 04, 2021 Rating: 5
Edit

The Greenback Remains Resilient as the Bulls Drive Equities Higher

February 03, 2021
Overview: Equities have charged higher, and the greenback is mostly firmer.  News that Draghi may become Italy's next Prime Minister has boosted Italian bonds.  The PBOC unexpectedly drained liquidity, and this may have deterred buying of Chinese stocks, a notable exception in the regional rally.  It stopped last week's four-day slide with…
The Greenback Remains Resilient as the Bulls Drive Equities Higher The Greenback Remains Resilient as the Bulls Drive Equities Higher Reviewed by Marc Chandler on February 03, 2021 Rating: 5
Subscribe to: Posts ( Atom )
Powered by Blogger.