Looser-Covid Policy Rally on Chinese Stock Markets Fades Out

Markets US stock markets lost more dash yesterday, ceding again up to 2% (Nasdaq) in the close and completely erasing the exaggerated reaction to last week’s dovish interpreted Fed Chair Powell speech. Technically, the S&P 500 failed to really test the September high at 4119, with first support in the 3905/3912 area now very nearby. […]

Bitcoin is Calmly Forming a Bottom

Market picture The crypto market remains detached from movements in traditional financial markets. Bitcoin continues to hover around $17K, despite the S&P 500 is down 1.5% and the Nasdaq down 2%. The capitalisation of the entire crypto market is unchanged overnight, remaining at $853bn. Cryptocurrency enthusiasts are waiting for ideas and news that could move […]

Covid Lockdowns Hinders China's Trade

Last month, China’s harsh lockdown measures negatively impacted foreign trade. Exports fell by 8.7% YoY; imports lost 10.6% YoY. Economists, on average, were expecting half the rate of decline. Trade surplus shrank to $69.84B in November from $85.15B a month earlier and is much weaker than the forecasted $79B. Overall, the figures are far from […]

All Eyes on the Bank of Canada

The Canadian dollar has edged lower on Wednesday. In the European session, USD/CAD is trading at 1.3686, up 0.25%. December has started on the wrong foot, as the Canadian dollar is yet to post a winning session. Will BoC push the 25 or 50 button? The Bank of Canada hasn’t hesitated to put the rate […]

The Fed: What Happens After the Fed Reaches the Terminal Rate

Yesterday, several major CEOs gave interviews to financial media in the context of a couple of major investor conferences. Their comments left a sour note for the markets, and tech stocks led a move lower in US equities which fed over into the Asian and European stocks. Aside from the less than optimistic outlook, it […]

Powell is Not Here to Make Equity Investors Happy

Appetite in Asian equities improved on hints that China could ease the excessive Covid curbs as a response to angry anti-Covid protests. Nasdaq’s Golden Dragon China index rallied 5% yesterday, even though appetite for the rest of the stocks remained limited, as few wanted to take a bet before Federal Reserve (Fed) head Jerome Powell’s […]

Official Chinese November PMIs Disappointed

Markets First releases of EMU November CPI in several EMU members states fueled the debate whether or not EMU inflation has reached its peak. Spanish headline inflation dropped faster than expected (HICP -0.5% M/M and 6.6% Y/Y, from 7.1% Y/Y). Belgian CPI showed a similar picture (-0.23% M/M to 10.63% Y/Y, from 12,27%). However, in […]

Aussie Higher after CPI Dips

The Australian dollar has extended its gains on Wednesday. AUD/USD is trading at 0.6723 in Europe, up 0.54%. Australian inflation falls below 7% Australia inflation surprised on the downside with a 6.9% gain (YoY) in October. This was down sharply from the 7.3% clip in September and beat the consensus of 7.4%. The burning question […]

EURUSD Edges Higher as CPI Falls

It continues to be a quiet week for the euro. In the European session, EUR/USD is trading at 1.0363. Eurozone inflation falls to 10.0% The ECB’s number one priority has been bringing down inflation, which has hit double-digits. ECB policy makers are no doubt pleased that November CPI fell sharply to 10.0%, down from 10.6% […]

Euro Inflation Notes

On the face of it, the November flash HICP figures brought a welcome decline in headline inflation from 10.6% to 10.0%. However, we think the evidence for a similar peak in underlying inflation pressures is less clear-cut and ‘stickily’ high core inflation could remain a concern for ECB for some time yet. Firms continue to […]