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The international currency market is a bit of a mirage. Like an oasis in the desert, the US dollar has been the king of the asset class. A flight to quality in a risk-off environment has caused the value of the greenback to rise against other foreign exchange instruments. As the world battles ...
Overview Bottom-picking after officials step up efforts and some optimism creeps in is helping lift spirits today. As one looks at the equity bounces, it is important to remember that among the biggest rallies take place in bear markets. Nearly all the bourses in Asia-Pacific rallied, led by...
Overview In HG Wells' War of the Worlds , the common cold repelled a Martian invasion. Now, a novel coronavirus is disrupting everything and everywhere. Global equities continue to get hammered, though the apparent relative resilience of Japan may have spurred some buying of Japanese equiti...
Introduction In the past few weeks, the constant growing uncertainty around COVID-19 has rattle investors’ confidence and led to a global panic with massive repercussions on markets. World equities are now down over 30 percent since their February peak, and global stock and bond mar...
Overview Equities plunged and yields sank as the coronavirus threatens a global recession. The oil price war signaled by Saudi Arabia and Russia aggravates the desperate situation. Equity markets in the Asia-Pacific region slumped 3-7%. The Shanghai Composite was fell 3%. The Nikkei was off ...
The epicenter of the tremendous financial earthquake in 2008 and 2009 was in the US. There are many critics of the actions of the US (government and central bank), but it responded relatively early and relatively aggressively. The net result was FIFO as in first in, first out. It was that ...
Overview The sharp sell-off in US equities and yields yesterday is spurring a mini-meltdown globally today. Many of the Asia-Pacific markets, including Japan, Australia, Taiwan, and India, saw more than 2% drops, while most others fell more than 1%. The MSCI Asia Pacific Index snapped the fo...
Overview: The warning by the US Center for Disease Control and Prevention that Americans should prepare for an outbreak of Covid-19 sent the S&P 500 tumbling to an 11-week low and the 10-year Treasury yield to a record low near 1.30%. The volatility of the S&P ((VIX)) jumped to its h...
An exogenous shock disrupts relationships and patterns. It may be a useful reminder the correlation does not mean 100% co-movement. The strongest currency in the world last week was the Swiss franc, a safe-haven that rose by almost 0.5%. The weakest major currency, and third weakest overall,...
The dollar is the king of currencies. As the world's reserve currency, the US greenback is the foreign exchange instrument that central banks around the world hold as part of their reserves. At the same time, the dollar is the benchmark pricing mechanism for most commodities. Raw materials are...