Episodes
Equities in Europe trade with no firm direction in what has been a quiet morning session thus far in holiday-thinned volumesDXY managed to derive some support after losing 104.50 in early trade, with peers generally contained though JPY & CHF 'outperform'EGBs and USTs continue to diverge, but overall action has been limited given a lack of drivers and thin volumes.WTI Jan and Brent Feb remain firmer intraday but in the grander scheme...
Published 12/09/22
APAC stocks traded mostly higher as the region took impetus from the gains on Wall Street; Hang Seng and Shanghai Comp were indecisiveUS equity futures held on to the prior day's gains but lacked any significant follow-through during Asia hoursDXY continued to weaken after retreating beneath the 105.00 level yesterday, G10s were firmer against the USD, and USD/JPY fell below 136.00US Treasury Secretary Yellen said dollar movements largely...
Published 12/09/22
European bourses and US futures reside in narrow ranges are essentially pivoting the unchanged markDXY has managed to regroup amid an initial retreat in USTs; though, the index remains around the mid-point of a 105.04-105.42 rangeEGBs & their UK counterpart have, despite initial pressure, staged a firm rally to a test/eclipse of Wednesday's peaks; USTs remain lowerCrude benchmarks are consolidating after yesterday's mid-week pressure,...
Published 12/08/22
APAC stocks traded cautiously after the lacklustre handover from Wall St where the major indices were subdued; Hong Kong outperformed European and US equity futures lacked firm direction despite an earlier approach towards the prior day's lowsDXY was marginally higher overnight, G10s were mostly lower, and the JPY laggedUS Energy Envoy Hochstein said the US still needs to replenish the SPR for the...
Published 12/08/22
European bourses are somewhat mixed after a predominantly soft cash open, Euro Stoxx 50 -0.5%; though, the breadth of the market remains narrow.Stateside, futures are in relative proximity to the unchanged mark and are yet to meaningfully deviate from overnight ranges, ES -0.2%USD is mixed vs G10 peers, though the DXY itself, while negative on the session, remains underpinned around 105.50.Crude benchmarks are softer intraday given the...
Published 12/07/22
Choppy session thus far across equities as the region looks for direction, ES circa. 4k.Followed mixed APAC trade given the hawkish Wall St. handover eased on further China COVID control adjustmentsDXY briefly eclipsed Monday's best to a 105.50 peak before fading in relatively limited newsflow and as UST yields ease.Aussie is the modest outperformer following a 25bp RBA hike and guidance for further inflation-justified...
Published 12/06/22
European bourses are under modest pressure, Euro Stoxx 50 -0.2%, with US futures in-fittingFollowing fairly contained APAC action though Chinese stocks outperformed amid a further easing of COVID controlsCrude benchmarks have been choppy, but are ultimately firmer post-OPEC+ and as the Russian oil cap comes into effect at USD 60/bbl.DXY bid with the Yuan and AUD outperforming while JPY is the standout laggardEGBs...
Published 12/05/22
APAC stocks traded mostly positively, although the gains for the rest of the region were limited; China outperformedSeveral Chinese cities accelerated the loosening of COVID-19 restrictions over the weekend including Shanghai and ShenzhenOPEC+ ministers formally endorsed the output policy rollover and will hold the next JMMC meeting on February 1st, while it vowed to stand ready to adjust oil output to stabilise marketsRussian Deputy PM...
Published 12/05/22
Equities in Europe are mostly mildly softer with the ranges particularly narrow ahead of the US jobs report; US futures in-fittingDXY is under pressure with peers modestly firmer and JPY outpacing given yield differentials and Tamura's remarksBunds are modest bid but failed to breach 143.00 with USTs essentially unchanged pre-NFPCrude benchmarks similarly contained awaiting oil cap/OPEC+ developmentsBeijing City...
Published 12/02/22
APAC stocks were subdued following the uninspired lead from the US ahead of the looming NFP jobs report.European equity futures were slightly lower with the Euro Stoxx 50 future down 0.2% after the cash market closed with gains of 0.5% yesterday.DXY remains sub 105, EUR/USD breached 1.05 to the upside, GBP narrowly lags G10 FX, NZD is the modest outperformer.EU officials are to resume discussions to break the deadlock on a price cap for...
Published 12/02/22
European bourses have benefited from the post-Powell surge, US futures more contained pre-dataAdditional support derived in APAC hours from China's PMIs and COVID adjustmentsDXY remains downbeat given the dovish Powell reaction, JPY is the standout beneficiary given rate differentialsEGBs are bid with pricing for December's ECB tilting towards 50bp given the magnitude of overnight price action, Lane speaks...
Published 12/01/22
APAC stocks took impetus from the strong rally on Wall Street (SPX +3.06%, NDX +4.58%) after Fed Chair Powell’s speech.Fed Chair Powell said it makes sense to moderate the pace of interest rate hikes, adding he does not want to over-tighten but cutting rates is not something to do soon.Chinese Vice Premier Chunlan noted that the country’s fight against COVID is entering a new phase, while Caixin Manufacturing PMI topped...
Published 12/01/22
European equities trade on a firmer footing following mixed leads from Wall St, with eyes set on Fed Chair PowellDXY under pressure after failing to surpass 107.00 overnight, Cable above 1.20 with antipodeans leadingYuan, base metals and COVID-sensitive areas supported following the latest China testing/restriction alterationsCore bonds dented as core EZ inflation fails to decline, USTs directionally in-fitting but little changed overall...
Published 11/30/22
APAC stocks eventually traded mostly higher although gains were capped following the subdued handover from Wall St and disappointing Chinese PMI data.European equity futures were positive with the Euro Stoxx 50 future up 0.5% after the cash market closed flat yesterday.DXY ran out of steam ahead of 107, EUR/USD and Cable reside on 1.03 and 1.19 handles respectively, NZD outperforms.OPEC+ is likely to keep output levels flat at the Sunday...
Published 11/30/22
European bourses trade mixed after the initial China-led optimism petered out in early European hours, Euro Stoxx 50 +0.2%.US futures are supported but off best levels ahead of Powell on Wednesday and data points thereafter, ES +0.3%USD remains underpinned above 106.00 after Monday’s Fed speak, but is softer overall with antipodeans leadingCrude benchmarks are bid on speculation around China’s COVID controls easing, with participants also...
Published 11/29/22
APAC stocks were mostly positive with the improvement in risk appetite spurred after China protests were clamped down on by police.Fed's Bullard said markets are underpricing the risk that the Fed may be more aggressive, Williams sees a somewhat higher rate path in 2023 vs the September SEPs.European equity futures were slightly positive with the Euro Stoxx 50 future up 0.1% after the cash market closed down by 0.6% yesterday.DXY...
Published 11/29/22
Cash bourses in Europe hold the downside bias seen across APAC stocks overnight which emanated from China reporting a record increase in COVID casesStateside, futures are under similar pressure with the ES below 4000USD is under pressure as the risk tone favours JPY & others, alongside month-end models pointing to USD sellingInitial haven bid in EGBs has faded ahead of Central Bank speak incl. President...
Published 11/28/22
APAC stocks traded mostly lower with risk appetite sapped by the ongoing COVID-related issues in China which has resulted in public unrest.European equity futures are indicative of a lower open with the Euro Stoxx 50 future -0.6% after cash markets closed flat on Friday.DXY remains stuck on a 106 handle, EUR/USD lingers around 1.0350, JPY outperforms G10 FX, antipodeans lag.Crude declined with Brent beneath USD 82/bbl for the first time...
Published 11/28/22
European bourses and US futures are near the unchanged mark with newsflow limited in holiday-sapped tradeDXY has experienced a resurgence to 106+ parameters, aided by the PBoC cutting the RRR as toutedCore fixed is under pressure with Bund’s below yesterday’s trough though holding onto the 141.00 mark; USTs in-fitting directionallyCrude benchmarks have been grinding higher despite the USD pickup and further China COVID controls, oil price...
Published 11/25/22
APAC stocks followed suit to the gains on Wall St with risk sentiment underpinned following the FOMC Minutes which supported the view for the Fed to shift to smaller rate hike increments.China reported daily new COVID-19 cases in the mainland reached a record high and ordered a lockdown in Zhengzhou following violent protests.European equity futures are essentially unchanged in thin trade ahead of numerous Central Bank speakers.DXY is on...
Published 11/24/22
European bourses are flat/mixed and have struggled for direction all morning despite fleeting hawkish reactions to the region's PMIsStateside, action is similarly ahead of a somewhat busier data docket on the last full session before ThanksgivingDXY reclaims but struggles to advance on 107.00 while Kiwi flies post 75bp RBNZ hike, GBP bolstered by PMIs & a court rulingGilts outperform ahead of supply and BoE's Pill while core EGBs are...
Published 11/23/22
European bourses are modestly firmer, Euro Stoxx 50 +0.2%, though fresh developments have been limited and the upside itself is tentative at best.USD has lost overnight recovery momentum with peers benefiting across the board with the Kiwi leading ahead of the RBNZRangebound trade for core fixed income, though intraday boundaries have extended on both sidesComparably contained session for the crude complex after yesterday’s pronounced...
Published 11/22/22
APAC stocks were mostly positive as regional bourses attempted to recover from the recent China COVID woes.European equity futures were modestly higher overnight with the Euro Stoxx 50 future +0.2% after cash markets closed lower by 0.4% yesterday.DXY has pulled back after topping out just shy of 108, USD/JPY Is back below 142 and EUR/USD remains stuck on a 1.02 handle.Saudi officials denied talk of an increase in OPEC+ oil...
Published 11/22/22
European bourses are pressured across the board, Euro Stoxx 50 -0.6%, as China's COVID crackdown weighs on sentimentStateside, futures are similarly impaired at the start of a holiday-thinned week with today's US docket particularly thin ex-supplyUSD has benefited from above risk-aversion with G10 peers lower across the board, particularly Yen & YuanDespite pronounced action earlier on, core fixed benchmarks are in relative proximity...
Published 11/21/22