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Sunset Market Commentary

Markets Trading mainly developed through the risk angle today. The recent (European) corona setback outweighs the reflation story in the short run. End of quarter rebalancing out of stocks into bonds might have added to recent moves. European stock markets currently decline around 1%. The technical picture of the EuroStoxx...

Sunset Market Commentary

Markets As was the case over the previous days, markets are still looking for the right balance/speed with respect to reflation trade. Recent sharp repositioning on bond and commodity markets earlier this week caused some nervousness on parts of the equity market. Fed Chair Powell yesterday reiterated that the Fed...

Sunset Market Commentary

Markets It was a rather dull European start to the trading week following an exciting end last week, but things turn more vibrant as US dealers enter. The eco calendar was empty bar outdated December German industrial production data, which didn’t impact markets. German production is losing momentum (0% M/M),...

Weekly Economic and Financial Commentary: Jobs Rebound Continues, But Signs of Moderation Ahead

U.S. Review Jobs Rebound Continues, But Signs of Moderation Ahead Employers added jobs for the fourth consecutive month in August, bringing the total number of jobs recovered from the virus-related low to 10.5 million. Although the labor market continued to improve, the pace of job growth is moderating. The one...

Week Ahead – Is the Economic Recovery Stalling?

Country US Possible further evidence that the US economy is stalling could continue to take a bite out of risk appetite.  On Monday, the ISM manufacturing reading is expected to show the rebound continues, with textile mills, wood products and furniture leading the way.  The virus spread however will drag down...

Weekly Economic and Financial Commentary: Jobless Claims Rise, Housing Market Rebounding

U.S. Review Jobless Claims Rise, Housing Market Rebounding Initial jobless claims rose to just over 1.4 million for the week ending July 18. Continuing claims fell to about 16.2 million. Initial claims edging higher suggests that the resurgence of COVID-19 may be taking a toll on the labor market recovery. ...

Week Ahead – Focus Remains on Virus Spread, Fiscal Stimulus, Rebounding Data, and Earnings

Key Economic Events Saturday, July 18th EU leaders finish their two-day summit with hopefully an agreement on stimulus, or at the very least a breakthrough. G20 finance ministers begin a two-day meeting in Saudi Arabia. Sunday, July 19th President Trump morning interview on Fox News 19:50 ET Japan Jun Trade...

Week Ahead – Reopening Momentum and China in focus

Brewing geopolitical risks helped investors take some risk off the table heading into the long weekend. The dollar rallied against most of its peers as tensions remain front and center for the world's two largest economies. Renewed unrest in Hong Kong will continue to weigh on the overall outlook...

Week Ahead – More Easing on the Way

No such thing as a dull week It’s been another interesting week in financial markets. One of economic reopening, second waves, stark warnings, recession and much more. The week ahead is going to be no less eventful as investors come to grips with the reality of the situation we’re all...

Week Ahead – Georgia Reopening Fallout, Three Big Rate Decisions, and Big Tech Earnings

Global equities and the US dollar appear to be approaching a possible turning point with the stimulus trade.  Global equities have been widely supported by unprecedented stimulus from central banks and governments, but that seems to be losing some of its firepower, while the steady demand for US Treasuries...

Sunset Market Commentary

Markets Same trading theme, different day. A violent sell-off on US stock exchanges yesterday reverberated through the Asian session and also during early European dealings. European equities gapped lower after which losses mounted to 3% before bouncing off the lows. Most indices even pared all earlier losses even as...

Risk Appetite Grows ahead of Powell, Oil Bottom in Place, Gold Rally Pauses, EM in Focus

Global equities are higher across the board as investor optimism grows that Beijing is confident enough to allow its largest businesses to resume industrial production and on hopes that Fed Chair Powell’s testimony to Congress will signal that the coronavirus impact to the global economy could warrant further stimulus...

Week Ahead – It’s a Trade Deal!

What a start to 2020! It’s been a rather eventful first week of the year for financial markets and while next week may not be quite so action-packed, when it comes to the current climate, who knows what’s around the corner. As far as the coming week goes, politics will continue...

Sunset Market Commentary

Markets Trading on global markets developed along the same lines of earlier this week. Misty and diffuse comments from Chinese and US sources on the trade talks caused some irregular price moves. However, the risk for a sudden reversal in the news flow still prevents investors to engage in LT...

Week Ahead – New Tariffs Begin on China as RBA, BOC, Riksbank and CBR Have Rate Decisions

Labor Day will not be quiet at all, as the US-China trade war remains tense, as certain tariffs kick in and will start to weigh on the US economy.  Politics will remain a focal point as some UK officials will try to stop Boris Johnson’s plan to suspend Parliament. ...

Sunset Market Commentary

Markets Core bonds lose some ground today with US Treasuries underperforming. The Bund and US Note future treaded water in the opening stages of today’s session. The Bund set an intraday high around European noon after reports that the ECB is reviewing its inflation goal of “below, but close to...

Rand Little Changed ahead of FOMC and May 8th Election

Two big risk events are on tap for the rand, first is the conclusion of Wednesday’s FOMC meeting and the second is the May 8th vote. Initial expectations are that we could see a more dovish Fed meeting which could deliver some broad dollar weakness, which would benefit the...

SARB Kept Interest Rates Unchanged

As expected, South Africa central bank kept rates unchanged at +6.75%. The decision to keep policy steady was unanimous. The MPC considers monetary policy to be moderately accommodative Overall risks to inflation remain tilted to the upside Economic challenges are structural, with access risks to be to the downside ...

Rand Stands as Biggest EM Loser Following Balance of Trade Report

The South African Rand stands at time of writing as the biggest loser amongst emerging markets currencies today with losses of 1.56%, after South Africa’s latest balance of trade report unexpectedly showed slowing export growth. The recently-announced trade balance data for September has essentially resumed selling pressure on the Rand....

China and South Africa Attract Negative Spotlight of Global Markets

It’s been an interesting start to the new trading week with a number of different markets across the globe suffering weakness. Headlines range from Chinese stocks getting slammed lower as trading resumed from a week-long holiday, the Euro retreating on the news that the European Commission has expressed concerns about...

Optimism Builds That Dollar Turning Corner Lower

Currencies throughout Asia have welcomed the news that the Dollar has tumbled to a near 3-month low. A number of different currencies in the region have advanced against the Greenback, with the weakening momentum for the Dollar benefiting the Indian Rupee the most at time of writing. Indications that the...

SNB Stands Idle, ZAR Recovers

SNB plays the same record! Switzerland's foreign trade remained subdued in August amid weak demand from the US and Asia. Exports rose 0.6%m/m in August, while previous month figure was downwardly revised to -2%m/m from -1.4%. Imports contracted 2.8%m/m, compared to -1.3% in July. The trade balance rose to CHF...

A Mixed Start For The Dollar, Lira Resumes Trading Under Further Pressure

There is mixed sentiment towards the Greenback at the start of the new trading week. The Dollar has edged marginally higher against the Euro, Pound and Australian Dollar with the Greenback broadly stronger against those in the EMEA as all eyes return to the Lira after Turkish markets resume...