European Periphery Returns to the Spotlight
Peripheral yields soared on Friday with the yield on Greece’s 10-year government bond rising to record levels as speculation that of a default continued to gain steam. At the same time yields on the equivalent German note, eased to 3.12 per cent as Bunds were sought as safe havens. The debate over whether Athens should [...]
The Periphery Remains in the Headlines
The euro zone periphery remains in the news with Moody’s cutting Ireland 2 notches to the lowest investment grade rating, and maintaining a negative outlook. This followed Fitch’s removal of Ireland from credit watch yesterday. Irish sovereign yields had generally been falling since the bank stress tests were announced at the end of March, but [...]
“Risk On” Gains Steam Throughout the Week
The currency markets experienced a movement away from safe haven currencies during the weak as the Yen declined hitting its lowest level in the past 6 months against the dollar. The Euro remained range bound between 1.4250 and 1.4000 as issues related to Ireland and Portugal continue to put pressure on European peripheral yields. During [...]
Risk Returns to the Capital Markets
Riskier assets gained traction and were able to perform well during the majority of the past week. Equity markets, along with commodities lead the charge higher and pushed commodity oriented currencies higher as well. Commodity prices on precious metals also made new all time highs, specifically in Gold and Silver. The Euro and the Australian [...]
Volatility Return to the Capital Markets
The past week saw the return of volatility to the capital markets. Currency’s, equities, commodities and debt all experienced higher than normal trading ranges, with investors moving capital into safe haven assets at the beginning of the week. All eyes were on Japan, as the nation which was struck by an earthquake and tsunami, was [...]
Japanese Foreign Minister Resigns
Japan’s foreign minister Maehara resigned over the weekend over a funding scandal and this has negative implication for Japan’s fiscal position. Maehara had been tipped as a possible successor to Prime Minister Kan, but his resignation appears to weaken Kan’s hand.
2010 Ends With Minimum Volatility
In the last week of the year global equity markets remained subdued. The US markets were down slightly, with the S&P 500 declining .25%. In Asian, the Shanghai lost nearly 1%, and in Europe the FTSE was the big loser declining nearly 2%. As the markets look forward into the New Year, the sovereign debt [...]
Yen Current Account Surplus Widens
Increasing exports boosted Japan’s current account surplus supporting the idea that demand from Asia has helped offset the impact of the yen’s strength. The surplus expanded 24% from a year earlier to 1.96 trillion yen ($24 billion), more than the forecasts for a surplus of 1.684 trillion yen. Exports climbed 2.3% from the previous month, [...]
Intervention Pushes the Yen Lower
The main development has been Japanese intervention; the first such operation in six years. Although there has been speculation of the likelihood of intervention over the past couple of weeks, the market was still caught off guard. The defeat of Ozawa in his leadership challenge, the immediate threat of intervention appeared to slacken and many [...]
Yen jumps on the Euro
The Yen rose today to a 9 month high (JPY/EUR) as signs of global economic recovery faded for currency traders. The Japanese currency rose on account of being sought after as a safe haven. The Yen rose against all 16 of the major currencies, touching 89.25 to the US dollar, with a high of 89.14. [...]
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