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US Open Note – Stocks to close the week unharmed as the focus turns to the Fed

Posted on July 23, 2021 at 1:16 pm GMT

Stocks flirt with record highs Despite a choppy week, which spurred pandemic fears before putting them back to rest again, global stocks bound up their wounds as investors cheered on robust corporate profits and assessed that fiscal and monetary policy could still protect economies from covid breakouts. Industrials, basic materials, and consumer cyclicals drove gains in the pan-European STOXX 600 today, pushing the index closer to its recent record highs, while upbeat earnings in telecommunications and autos underpinned sectoral advances. Wall [..]

Daily Market Comment – Stormy week ends with US stocks at record highs

Posted on July 23, 2021 at 8:48 am GMT

Nasdaq 100 closes at new record as investors warm up to tech stocks   Euro heads lower after ECB commits to negative rates for longer Global PMIs coming up to shed some light on recovery speed  Delta blues fade There was no shortage of volatility in financial markets this week. The week started with investors losing their cool over a slowdown in global growth as the rampaging Delta variant left its marks on several economies, but those worries soon faded into [..]

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US Open Note – Pandemic anxiety spurs risk aversion; Wall street futures in the red

Posted on July 19, 2021 at 1:02 pm GMT

Pandemic uncertainty resurfaces The cocktail of a contagious Covid delta variant and the stabilization in vaccinations revived memories of lockdown restrictions and amplified inflation fears at a time when investors were confident that the summer months could boost economic growth, especially in the hardest-hit tourism sector. The major concern is how the pandemic will evolve when the flu activity resurfaces in the last quarter of the year and whether governments will reimpose strict curbs or let herd immunity do its [..]

Daily Market Comment – Virus fears return to haunt markets

Posted on July 19, 2021 at 8:51 am GMT

Global stocks lose altitude as investors sense something ominous Sterling caught in the storm too, loonie slides with oil after OPEC deal Dollar and yen stand tall amid flight to safety, gold not so fortunate  Gloomy mood spreads The sense of caution that dominated the bond market recently is now spreading over into stocks and currencies, leaving investors puzzled over what’s behind all the gloom. The initial spark seemed to be a short squeeze in bonds that hammered yields lower, [..]

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US Open Note – Markets cool down after a messy week despite China’s RRR cut

Posted on July 9, 2021 at 1:26 pm GMT

Stocks get on their feet ahead of earnings Markets took a breather at the end of a turbulent week, which suddenly derailed hopes of a swift economic recovery and promoted self-realization that the vaccination program alone may not be enough to re-establish the pre-Covid normality. The pan-European STOXX 600 is currently up by around 1.0%, having recouped a large share of yesterday’s losses, with consumer cyclicals, basic materials, and real estate enjoying the biggest gains. The index, however, is still [..]

Daily Market Comment – Special ECB announcement could rock the euro today

Posted on July 8, 2021 at 8:33 am GMT

ECB set to announce higher inflation target, Lagarde presser to follow Dollar little changed after Fed minutes, yen shines as yields crumble  Stocks retreat amid Chinese regulatory crackdown, oil tanks Euro braces for special ECB announcement The European Central Bank will announce the outcome of its strategic policy review at 11:00 GMT today, with a press conference by President Lagarde to follow 90 minutes later. Reports suggest the ECB will raise its inflation target to 2% and signal it will [..]

Daily Market Comment – Risk aversion hits stocks, revives dollar

Posted on July 7, 2021 at 8:52 am GMT

Risk aversion hits stock markets, breathes life back into dollar Yen shines as US yields decline, oil under pressure, gold cools  Fed minutes today could decide if this volatility episode lasts Pandemic-style worries haunt markets  It was an explosive session across financial markets on Tuesday as risk aversion made a rare comeback. The underlying theme was fear, but with a pandemic-style flavor. Investors essentially slashed their exposure to assets that are linked to the real economy and looked for shelter [..]

Daily Market Comment – Dollar stable, equities advance as Powell calms nerves

Posted on June 23, 2021 at 8:48 am GMT

· Dollar trapped between soothing Fed remarks and longer-term path · ECB considers higher inflation target, ECB/Fed divergence coming? · Eurozone PMIs edge higher as reopening momentum grows Fed puts the brakes on resurgent dollar Global markets continue to dance to the beat of monetary policy signals. The world’s reserve currency surrendered some of its latest gains and equities clawed their way back to record highs this week as the Fed did some damage control, with several officials playing down [..]

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US Open Note – Dollar charts best week of 2021; stocks, commodities under pressure

Posted on June 18, 2021 at 1:18 pm GMT

Dollar keeps FOMC power  The US dollar, the world’s reserve currency, is heading for its best weekly trade in nine months buoyed by the FOMC’s hawkish turn, which bolstered the outlook for the US economy and put European currencies and commodities on the back seat. US stocks fall but tech sector holds resilient Global stock indices also retreated in fear of higher interest rates for US businesses in the next few years and on concerns other central banks could also [..]

Daily Market Comment – Nasdaq hits new record as markets say inflation is dead

Posted on June 18, 2021 at 8:51 am GMT

· Tech stocks power higher as markets bet Fed will tame inflation · Dollar keeps rampaging, gold heads for massive weekly losses · Pound struggles after soft data, quadruple witching coming up Inflation-linked trades fall apart Bets for raging inflation in the coming years are being unwound at a stunning pace, sparking all sorts of havoc in the markets. It all comes back to the Fed, which signaled that the days of infinite liquidity are drawing to an end and [..]

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