Market Quick Take - August 7, 2020
Equity futures pulled back sharply late yesterday after aggressive new highs in the US trading session after US President Trump banned TikTok and WeChat for use by individuals or companies in the US, to go in effect in September. In Asia, mainland Chinese chairs suffered a weak session, led by WeChat owner Tencent, while risk aversion elsewhere was modest.
Podcast: Negative real rates story driving everything
Today we look at another strong session for US equities, which barely bothered to register concern after regular trading hours late yesterday on the US President Trump move against Chinese social media companies. We also look at the key driver across markets at the moment, the persistent drop in the market pricing of forward real interest rates.
FX Update: USD pulls back from new lows. TRY tailspin.
The US dollar weakened to new cycle lows this morning, only to perk up suddenly in what could be a sign of a tactical setback for USD bears, though too early to draw conclusions. In Turkey, the USDTRY spot rate accelerated to the upside to a new all-time high and other EM currencies were under a bit of strain, a possible source of the USD support here.
Market Quick Take - August 6, 2020
Gold prices continue to dominate market attention after the remarkable advance of 75 dollars per ounce over the last few sessions. The USD has lurched weaker again and is helping to feed a rise in prices there and asset markets globally, with modest new highs for the cycle posted in US equities. Today we get a look at the latest US claims data after the ISM Services index suggested a weak labour market in July.
Macro Dragon: Does the Amazon belong to Brazil or the World?
Macro Dragon = Cross-Asset Daily Views that could cover anything from tactical positioning, to long-term thematic investments, think pieces, key events & inflection points in the markets, all with the objective of consistent wealth creation overtime.