Sunset Market Commentary

Markets During the weekend, US authorities took steps to restore confidence in the US financial system after the collapse of Silicon Valley Bank (SVB). They included full protection for all depositors of SVB (and Signature Bank). At the same time, the Federal Reserve, with the backing of the Treasury, put in place a new ‘Bank […]

How Should the Market React to US CPI?

Monday was yet another ugly day for bank stocks around the world, as the selling pressure continued following the SVB debacle in the US last week. The money flew into the safe havens. Treasury yields around the world tumbled sharply. The US 2-year yield tipped a toe below the 4% mark, from above the 5% […]

Sharp 'Post-SVB' Repositioning Continued Unabatedly

Markets Yesterday, the sharp ‘post-SVB’ repositioning, especially on interest rates markets, continued unabatedly even as US authorities during the weekend took measures to protect depositors and facilitated more easy refinancing for banks that face negative asset valuations due to the global rise in yields/inversion of the yield curves. However, in a first reaction, it didn’t […]

Calm But for How Long

Some calm appears to have returned to financial markets in early trade in Europe this morning but how long will it last? While everyone will be hoping that the turmoil that swept through markets since Friday is dealt with and behind us, I’m not sure anyone can say with any confidence that this is the […]

British Pound's Rally Fizzles as Markets Settle Down

The British pound has reversed directions after an impressive rally that saw GBP/USD climb 370 points. In the European session, GBP/USD is trading at 1.2154, down 0.24%. US dollar recovers The collapse of the Silicon Valley Bank (SVB) on Friday sent the financial markets into turmoil on Monday. US bank stocks declined sharply, while safe-haven […]

Continued Focus on Central Bank Communication

Market movers today German factory orders will reveal if manufacturing activity rebounded in January, after slumping at the end of last year. Fed chair Powell will present his semi-annual Monetary Policy Report to the Senate Banking Committee. Ahead of the February jobs report on Friday, he will probably try to strike a balance between highlighting […]

All Eyes on Powell

The week started with worries that China setting its growth target to 5%, a meagre target for a post-pandemic kick-off, could mean a slower global growth ahead. Today, the latest, and mixed trade figures further raised a couple of eyebrows regarding whether we are expecting too much from China. The decline in Chinese exports was […]

Fed Chair to Reiterate Rates be Raised At Least In Line With December Dots.

Markets There was every reason to expect a calm session yesterday with Friday’s correction/consolidation on yield markets to continue into today’s appearance of Fed Powell before Congress. Eco data were few and second tier. However, calm was fiercely disturbed around noon. After ECB’s Wunsch on Friday, ECB’s Holzmann came up with some ‘out-of-the-box’ thinking on […]

Volatile Week Ahead as Risk Events Eyed

The next few days could be wild and incredibly volatile for financial markets thanks to key central banks meetings, a semi-annual Congress appearance from Jerome Powell, and the latest US jobs data. Asian shares edged higher on Tuesday morning following the mixed cues from Wall Street overnight as investors geared up for this week’s key […]

All Eyes on Powell

It’s shaping up to be another relatively flat day in the markets as investors turn their attention to Capitol Hill ahead of Jerome Powell’s first testimony. The Fed Chair will appear before the Senate Banking Committee later today to testify on the semi-annual monetary policy report. These events naturally attract a lot of attention but […]