Risk sentiment was muted in Asia, mainly on the back of intact worries about global growth prospects and the Eurozone debt crisis. Several officials stressed the fragile situation in France and Italy. According to German Chancellor Merkel Greece will not receive aid payments this month if conditions of the rescue package are not met. Italy’s President Napolitano said that the alarming widening of Italian sovereign spreads over bunds cannot be ignored, and said it shows the urgent need to regain market confidence. Continue reading →

Risk sentiment was muted in Asia, mainly due to disappointing US labour data and intact uncertainty about the Eurozone. According to Friday’s payrolls report US employers added no new jobs in August. The unemployment rate was stuck at 9.1%. With the labour market remaining weak, there is no indication for a quick rebound in consumer sentiment and hence domestic demand. Continue reading →

Price action was subdued in Asia overnight, with market focus centered on today’s US payrolls release. The S&P 500 closed down 1.2% despite a stronger ISM number yesterday and softer risk appetite worked its way into the Asian session. Yesterday’s August ISM number came in well ahead of expectations. Not only did it force some market participants to reassess their expectations for further Fed monetary easing, it also contrasted sharply with a batch of weak European PMIs released earlier in the day. Continue reading →

Risk markets continued to rally in Asia with the dollar softer versus G10 currencies, after a US session that was dominated by dovish FOMC minutes, which initially led the dollar gently lower, and pushed AUDUSD above 1.07 for the first time in almost four weeks. EURUSD traded 1.446-1.4414 and USDJPY 76.54-76.76. Continue reading →

Risk ended the Monday session on a buoyant note though trading was generally light due to a UK holiday and limited activity in the US post Hurricane Irene. Nonetheless, there is still a suggestion that markets are not giving up on the chances of new QE, and today’s FOMC minutes releases will probably be more forthcoming with information compared to the Jackson Hole speech last Friday. Continue reading →

Risk sentiment has been supported in Asian hours, mainly in reaction to Fed Chairman Bernanke’s Jackson Hole speech on Friday and with Hurricane Irene causing less damage than initially feared. Bernanke confirmed a view of reaccelerating growth by the end of the year, but also said that the Fed has a range of tools for stimulating growth and that it will use its tools as appropriate. Continue reading →

Cautious optimism appears to be the order of affairs as the market looks to a series of growth figures and Bernanke’s key Jackson Hole speech today. Most Asian equity indices are trading higher, though again investors would need to ponder how much of this is artificial as the short-selling ban currently in place in France, Italy, Spain and Belgium has been extended. Continue reading →

Ahead of Friday’s Jackson Hole speech risk sentiment appears to have very little underlying momentum. Down days are immediately squared up the next. Even though fresh liquidity is by no means a given, the market is struggling to come to terms with not just whether fresh QE is on the cards, but also what kind of a signal it may send as the marginal impact of additional liquidity appears to be waning. Continue reading →

Risk appetite took a knock during Asian hours as Japan was downgraded by Moody’s. The step was merely catching up to other ratings agencies, but nonetheless reminded markets the stakes of the fiscal adjustment faced by many developed countries. Growth worries are the other recurring theme and investors have clearly started to see each weak incoming release as providing further incentive for Fed Chairman Bernanke to give a nod towards QE3 at Jackson Hole on Friday. Continue reading →

Risk appetite was somewhat subdued overnight. However as US stocks managed to finish in the positive, most Asian markets have responded accordingly. A lack of data and fresh event risk appears to have steadied markets but the release of several Eurozone indicators will put the focus back on growth in the region, which has held up relatively better than the US throughout the year but now appears increasingly at risk. Continue reading →

Overnight price action was relatively subdued but risk sentiment remains broadly soft as the market prices in further economic weakness after last week’s string of worrying data out of the US. USDJPY remains the focal point as investors wonder when the MoF will instruct the BoJ to intervene as the yen tests record highs against the dollar. Continue reading →