Risk sentiment has been firm in Asia, mainly on the back of yesterday’s better-than-expected US data and hopes that Eurozone policymakers will step up efforts to recapitalise the banking sector. For instance, German Chancellor Merkel said the state would step in if banks cannot recapitalize on their own. Continue reading →

Risk sentiment was mixed in Asia as investors weighed yesterday’s positive close in US stock markets against uncertainty about policymakers’ ability to solve the European debt crisis. At the time of writing the Nikkei is down by 0.82% and S&P futures are broadly flat. Despite the mixed performance of Asian equity markets, sentiment does appear to have stabilised. EURUSD traded 1.3260-1.3358 and USDJPY 76.61-76.95. In Australia, retail sales rose more than expected, suggesting that consumers are proving resilient to uncertain growth prospects. Continue reading →

Risk aversion persisted in Asia on continued worries about the Eurozone periphery. Eurozone finance ministers agreed yesterday that Greece could wait until mid-November until it receives the next aid tranche. Greece was said to be able to run without additional cash until the second week of November. Separately, Eurogroup Chairman Juncker confirmed that discussions are underway to revise the July 21 agreement on private sector participation in a second Greek rescue. Continue reading →

Risk sentiment weakened in Asia mainly on lingering worries about the Eurozone periphery and global growth prospects. Greek government draft budget figures show the country is facing larger deficits than previously assumed. This comes as no surprise as published figures were in line with most recent estimations by the IMF. Continue reading →

The euro stayed buoyed in Europe by Germany’s passage of the EFSF upgrade. Parliamentary sources reported that the vote split was 523 for versus 85 against, with 3 abstentions. Crucially, Chancellor Merkel won the vote without relying on the opposition, contrary to fears beforehand that dissent in her party would be high. Continue reading →

The euro rallied in the Asia session despite limited newsflow as investors await the German Parliament’s EFSF vote Continue reading →

Risk sentiment was mixed but still broadly stable in Asia, following an article in the Financial Times claiming that several Eurozone member states want private sector bondholders to take larger losses on their holdings of Greek bonds. Continue reading →

Risk appetite continued to recover overnight as hopes of a rescue package for the Eurozone continued to rise. It is apparent that several plans are in the pipeline, all of which involve some degree of leveraging up of the EFSF. Continue reading →

The euro has started the week sharply lower as there was a clear lack of initiative at the weekend meetings in Washington. Continue reading →

The IMF meetings are in full swing in Washington, with the focus on how the wider G20 can contribute to resolving the sovereign debt crisis in the Eurozone. So far messages have been mixed Continue reading →

The Fed announced Operation Twist yesterday but judging by the reaction in risk, investors were clearly positioned for something more aggressive, even though the size of the purchases was more than markets expected. The Fed announced an intention to purchase $400 bn of long-term debt, funded by selling the same amount of short term paper, by the end of June 2012. Continue reading →