Moving Markets

Banks in China have cut their short-term lending rates, but markets are disappointed having expected more. Meanwhile, fixed income investors are looking for clues on monetary policy at this week's Jackson Hole conference. Mensur Pocinci, Head of Technical Analysis, sees the market rout in August as a consolidation only. 00:00 Introduction by Helen Freer (Investment Writing) 00:30 Markets wrap-up b...

Higher bond yields in developed markets are spooking equity markets, but some on the bond side see the higher yields as too attractive to miss out on. Services prices in Japan rose at the fastest annual rate since 1993. China is pushing hard against a weaker yuan. Bitcoin drops like a stone on a report that Elon Musk's SpaceX company has sold the digital asset. A big options expiration day could e...

Strong economic data out of the US highlighting the country’s resilience contrasts with an increasingly worrying picture in China and economic woes in Europe. Carsten Menke, Head of Next Generation Research, provides an update on industrial metals in the context of developments in China. And Ronny Kaufmann, CIO Strategy & Investment Analysis, shares with us the latest decisions from Julius Bae...

Equity markets are pricing in a new reality in which US interest rates will stay higher for longer and China will no longer be a growth engine for the global economy. This has implications for investors, as Dario Messi of Fixed Income Research explains: "The momentum for higher yields in the US has increased”. 00:14 Introduction by Jonti Warris (Investment Writing) 00:38 Markets wrap-up by Roman C...

China's central bank has unexpectedly cut a key interest rate due to weakness in its economy and it being on the brink of deflation, while Japan's economy accelerated in the second quarter on a surge in exports. In the US, artificial intelligence stocks led a market rally in technology stocks, while small caps traded at their lowest level in a month. Argentina was forced to devalue its currency by...

Asia Pacific markets are trading lower this morning after reported liquidity concerns at one of China's largest private wealth managers. A team at Goldman Sachs are expecting interest rate cuts by the Federal Reserve by the end of June next year. Markus Wachter from the Technical Analysis Research team provides a technical insight on oil, precious metals and US and European stocks. 00:14 Introduct...

The rally across markets faded into the end of trading as Fed officials warned that the battle against inflation is not yet won, despite a benign US inflation report for July. Tim Gagie, Head of FX&PM Solutions Geneva, shares his thoughts on what the latest inflation data means for currencies and metals. 00:14 Introduction by Helen Freer (Investment Writing) 00:40 Markets wrap-up by Roman Canz...

A down day for US equities yesterday may not be so telling ahead of today’s all-important US inflation data release. The Italian government qualified the extent of its windfall tax on excess profits of banks; a US 10-year Treasury auction was well received; the US announces new restrictions on investments in key sectors in China; China is allowing group travel to key countries again; and oil, natu...

Investor sentiment in Asia-Pacific takes a hit after China’s CPI and PPI data for July fell in tandem for the first time since November 2020, indicating deflation pressure amid weakening demand. And in a bid to restore calm to its financial system, Italy caps its new tax on banks' windfall profits at 0.1% of the firms’ assets. Dario Messi, Fixed Income Research, provides his thoughts on fixed inco...

Asia Pacific markets are mixed this morning after China reported trade data that showed a worse-than-expected decline in imports and exports. US markets closed higher on Monday, despite Moody's Investors Service downgrading ten small and mid-sized US banks. The Italian government approved a surprise tax on the ‘extra profits’ of banks this year, which could bring in over EUR 2 billion to the state...

Equities had one of their worst weeks in months, but most market participants believe this was due to profit taking rather than a significant change in the investment environment. The US employment report triggered a rally in US Treasuries - the entire yield curve has shifted significantly lower. Markus Wachter from Technical Analysis shares his thoughts on the direction of both equities and yield...

The Bank of England is the latest major central bank to raise interest rates in the face of high inflation figures. Elsewhere, earnings reports are pushing equities in one direction or the other, but US non-farm payrolls are the main focus for investors today. In Asia, China has pledged further support for the private sector and capital markets, while Hong Kong opens its doors to crypto. Also join...

The Bank of Japan intervened in the bond market for the second time this week in an effort to slow gains in benchmark sovereign bond yields. ADP data showed private sector job gains in the US totalled 324,000 in July outstripping expectations, driven by a jump in the services sector. And Leonardo Pellandini, Equity Strategy Research, provides an update on how the Q2 earnings season is progressing....

Mixed US jobs data, a string of underwhelming earnings reports, another lower-than-expected reading on US manufacturing activity and Fitch's surprise downgrade of US sovereign debt are weighing on markets today. Dario Messi of Fixed Income Research comments on the latest twists and turns in the fixed income markets. 00:14 Introduction by Bernadette Anderko (Investment Writing) 00:58 Markets wrap-u...

On this last day of July, investors this morning are still digesting last week’s central bank actions and assessing the latest supportive government measures from China. In commodities, oil – although trading lower this morning – is broadly supported and on track for its biggest monthly gain in over a year. In equities, more earnings reports and a slew of economic data releases could drive this we...

After the US Federal Reserve raised interest rates by a quarter of a percentage point and the European Central Bank followed suit, it was the Bank of Japan’s turn to announce its policy decisions this morning. While leaving its monetary policy unchanged, it signalled a loosening of its yield curve control, and this has caused volatility in the markets. Meanwhile, economic and labour market data fr...

Yesterday the US raised rates by 25 basis points in line with market expectations, and gave no hints as to whether a further hike will take place on September 20th. Markets took the news in their stride and Asian stocks rallied this morning. Today it’s the ECB’s turn and they are also expected to raise rates by 25bps. With oil settling above USD 80 a barrel, Norbert Ruecker, Head of Macro and Next...

Earnings results from the big tech companies are keeping investors on their toes as they wait for more colour on the interest rate decisions due today in the US and tomorrow in the Eurozone. Dario Messi of Fixed Income Research talks us through his expectations and makes the case for peripheral eurozone sovereign debt. 00:14 Introduction by Bernadette Anderko (Investment Writing) 00:39 Markets wra...

The latest purchasing managers' indices for July from Europe and the US point to a slowdown in economic activity in both regions. Investors are now turning their attention to this week's interest rate decisions and any clues as to the future path of interest rates. In addition to economic data, earnings reports and corporate news are also driving equity markets. In the Asia-Pacific region, news th...

The outcome of the Spanish elections came as a surprise and is causing uncertainty among investors. Equity markets have generally performed well of late, with the exception of the Nasdaq, which fell slightly on Friday on heavy volumes ahead of rebalancing. However, Mensur Pocinci, Head of Technical Analysis, remains positive on equities, and particularly the Nasdaq. 00:14 Introduction by Bernadett...

The US labour market continues to send out strong signals, which could be crucial for consumer spending and avoiding a recession this year. Meanwhile, disappointing results from some tech giants are weighing on the markets, raising the question of whether the recent rally has gone too far. Elsewhere, some commodity-related news is hitting the headlines, pushing commodity indices higher for the wee...

European stocks closed higher yesterday after UK inflation came in at its lowest level in 15 months. US markets also closed higher but futures fell stateside after both Tesla (record quarterly revenue but lower margins) and Netflix (revenue miss) reported Q2 results. In Asia, the People’s Bank of China surprised traders as it stepped in harder than expected to support the yuan, and Japan delivered...

After a somewhat sluggish start to the month, equities and bonds have picked up momentum in recent sessions, driven by positive earnings reports and lower yields. Dario Messi from our Fixed Income Research department explains why he remains positive on one of our core ideas in a risk-on environment: emerging market hard currency bonds. 00:14 Introduction by Bernadette Anderko (Investment Writing)...

US markets closed higher on Monday with the technology, financials and industrials sectors outperforming. Asia Pacific markets are mixed this morning, as China's sluggish economic recovery has led to a downgrade in growth forecasts. In response, China has unveiled an 11-point package of measures to support household spending. Microsoft has moved closer to completing its USD 69 billion acquisition...

In a week full of optimism that the Fed was getting closer to ending its rate hikes, global equities rallied. The USD could not hold its own and sold off sharply last week. China's Q2 growth figures out this morning disappoint and are weighing on local equities. In the US, the Q2 earnings season has kicked off in earnest, with the big US banks surprising on the upside on Friday. UnitedHealth's str...