Could the Australian CPI Further Boost the Aussie?

Amidst a quiet period on the Asian front due to the week-long Spring Festival in China, we get a handful of Australian data this week. Inflation data continues to attract the market’s attention, despite the recent drop in energy prices, amidst mixed expectations for a recession during 2023 at the biggest country of the Australian […]

Sunset Market Commentary

Markets It’s been a quiet session. Trading was already muted in Asian dealings with Chinese and several other local markets closed for the Lunar NY holiday season. The economic calendar failed to inspire too, containing nothing more than European consumer confidence, due after wrapping up this report. It looked that core bonds’ 2023 rally finally […]

January Flashlight for the FOMC Blackout Period

Summary Pieces have fallen into place since the FOMC’s last meeting on December 14 to allow the Committee to dial back its pace of tightening further. Consumer prices have decelerated in recent months, and the labor market has shown signs of cooling, although it generally remains tight. The FOMC raised its target range for the […]

Global Flash PMIs, and the Return of Investor Optimism?

At the conclusion of the latest WEF meeting in Davos, many of the leaders there were optimistic that the world would avoid a recession. Or, at least, if there was a recession, it would be short and shallow. A substantial portion of that optimism relied on an expectation that China would rebound, now that it […]

Will BoC Press the Hike Button One More Time?

After signaling that it will be considering whether interest rates need to rise further on a meeting-by-meeting basis, the Bank of Canada was seen as the first major central bank to end its tightening crusade. However, the stellar employment numbers for December sparked speculation that another quarter-point hike may be delivered at this week’s gathering, […]

Focus Turns to the PMIs

Market movers today The market highlight today will be the January PMI figures for the euro area, UK and US, which will give a first glimpse into the state of the global economy in 2023. The latest euro optimism could get another boost from further signs that the rebound in euro area leading indicators extends […]

More Job Cuts, PMI Data and Microsoft Earnings

The week started with more news of layoffs, and further gains in the S&P500. Spotify was the latest tech company to announce it will let go of 6% of its workforce – around 600 jobs. Shares gained 2% Ford announced it will cut 3200 jobs, mostly in Germany. Shares jumped more than 3%. Easy. Companies […]

Recent Rise in Yields Created Some Breathing Space

Markets The week started with a quiet but constructive trading session. No news apparently was considered good news. Eco data, if any, were second tier. The EC consumer confidence improved modestly, from -22.0 to -20.9, nothing to get euphoric about. Even so, it didn’t affect the positive equity sentiment. The EuroStoxx50 closed with a gain […]

Positive US Rate Outlook Boosts Risk Sentiment

Asian shares rose on Tuesday, following the positive cues from Wall Street overnight as growth stocks looked enticing ahead of major tech earnings. Mounting expectations over a less aggressive Federal Reserve stimulated appetite for risk, magnetising investors towards the equity space. However, markets in mainland China and Taiwan remain closed for the Lunar New Year […]

GBP/USD Slips on Record Debt, Soft PMIs

The British pound has posted slight gains on Tuesday. In the European session, GBP/USD is trading at 1.2302, down 0.60%. UK debt hits record UK debt costs soared in December, sending the budget deficit to a record 27.4 billion pounds. This was sharply higher than the November reading of 18.8 billion pounds and the consensus […]