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US Open Note – Pound unsurprised by Sunak’s mini budget; stocks moderately down

Posted on March 23, 2022 at 1:58 pm GMT

Gold steady, bond yields decelerate The military disaster in Ukraine remained mainly unchanged on Thursday, making investors wonder whether the ongoing talks between Russian and Ukrainian officials are indeed aiming for a ceasefire or are just a channel to persuade the opposite side to give up on its conditions. The next landmark on the geopolitical crisis will be the extraordinary NATO summit in Brussels on Thursday at the level of Heads of states and Governments, including the group of Seven and the [..]

Daily Market Comment – Yen melts down as yields go through the roof

Posted on March 23, 2022 at 9:48 am GMT

Relentless rally in bond yields crushes the Japanese yen But stock markets don’t get the memo, keep grinding higher UK spring budget and another dose of Powell coming up Yen pain trade Global bond yields continue to power higher, eclipsing pre-pandemic levels with the blessing of central bankers who are desperately trying to put the inflation genie back in the bottle. Investors are essentially dumping bonds in a fire sale manner, worried about suffering further losses on the price as [..]

Daily Market Comment – Dollar rips higher as traders crank up Fed rate bets

Posted on March 22, 2022 at 10:31 am GMT

Fed chief Powell highlights prospect of faster rate increases  Dollar cruises higher, yen annihilated, gold escapes unscathed   Stock markets close in the red but display some resilience too  Powell turns up the heat The Federal Reserve keeps warning investors that it will need to pull out the big guns in its battle against inflation. Chairman Powell made it clear yesterday that his central bank is willing to do whatever it takes to ensure the US economy returns to price stability, [..]

Daily Market Comment – Euro on recession watch, equities extend winning streak

Posted on March 21, 2022 at 10:20 am GMT

Stock markets power higher, flying against hawkish Fed  Crunch time for euro, PMI surveys set to reveal war damage Oil spikes higher as EU considers joining Russian embargo Equity markets advance Wall Street extended its winning streak on Friday, undeterred by signals that the Fed is about to slam on the brakes to get spiraling inflation under control. The flagship S&P 500 closed the week with gains exceeding 6%, drawing power from a collapse in implied volatility after the Fed [..]

Daily Market Comment – Stock markets come back to life, BoJ sacrifices the yen

Posted on March 18, 2022 at 9:49 am GMT

Stocks headed for solid weekly gains despite lingering risks Dollar softens but yen performs even worse as BoJ lags behind BoE raises rates in a cautious manner, dealing a blow to sterling Wall Street comeback Hopes for a peace deal in Ukraine and signals that China will open the stimulus taps wider helped global equity markets to shake off the blues this week, even as many of the risks behind the recent rout continue to linger. Between the ongoing war, [..]

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US Open Note – Pound corrects lower after dovish BoE; commodities up again

Posted on March 17, 2022 at 2:29 pm GMT

Dollar weaker after hawkish FOMC The US dollar continued to trade lower against a basket of major currencies for the third consecutive day to reach 98.19 despite the strong hawkish message from the FOMC policy meeting late on Wednesday. The Fed acknowledged the Ukrainian geopolitical risks and slashed its growth projections by almost half to 2.8% for 2022 but raised interest rates by a quarter-percentage as widely expected. Strikingly, however, it signaled six more rate increases this year and pledged [..]

Is the massacre in growth stocks over? – Special Report

Posted on March 17, 2022 at 2:00 pm GMT

With the war in Ukraine raging and central banks raising interest rates, equity markets have come under heavy fire. The S&P 500 has lost only 10% this year but that doesn’t tell the whole story. There has been a quiet massacre in the most speculative corners of the market, with several ‘growth’ stocks getting blasted. Has the storm finally passed?  Risks abound The mood in financial markets has turned bearish lately. Investors have been overwhelmed by an onslaught of negative [..]

Daily Market Comment – Dollar cools, equities storm back ahead of Fed decision

Posted on March 16, 2022 at 9:44 am GMT

Fed set to raise interest rates today, dot plot to drive markets Global stocks come back swinging, euro licks its wounds  Russia might default on debt, Germany announces spending plans Fed – talk is cheap The Federal Reserve is widely expected to raise interest rates today. A quarter-point rate hike is already fully priced in, so the market reaction will boil down to what Chairman Powell says during his press conference, the details around balance sheet reduction, and the updated [..]

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US Open Note – US stock markets open higher, dollar slips as yields retreat

Posted on March 15, 2022 at 1:55 pm GMT

Dollar softer ahead of FOMC The US dollar rallied earlier today against the Japanese yen as US Treasury yields spiked to multi-year highs. However, the greenback erased its gains and inched lower later in the session, with the pullback in yields and profit-taking probably being the major driving forces behind this move. The focus will now turn to the outcome of the two-day FOMC monetary policy meeting starting later today, where investors will gain invaluable insights into the pace and timing of [..]

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US Open Note – Markets hope for peace talks; US stock futures mixed

Posted on March 14, 2022 at 2:15 pm GMT

Risk mode on as Ukraine-Russia start the fourth round of discussions While there is no clarity on what the positive assessments from the latest Russian-Ukraine high-level talks are, markets continued to behave like the fourth-round of talks would result in another positive outcome today even if Russia’s attacks expanded closer to the Polish borders, and the war conditions remain largely unchanged. Another reason for the current risk-on tendencies is perhaps the fact that investors have started to adjust to the [..]

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