by Markus

. I am glad about the reached agreement. Its three main pillars consist of: + EUR 750 bn in a fiscal support program, with 2/3 coming from the IMF + The ECB promises to buy gov and corp bonds in dysfunctional markets + Swap lines with the Federal Reserve, to provide USD Finally, Europeans leaders [...]

by James

For some time we have been reporting on the tight correlations between the dollar and various risky assets. Up go risky assets, down goes the dollar. During last month’s G20 meeting, we noted (click here) that the absence of currency issues from the agenda amounted to a free ticket for markets to carry on trading. [...]

by James

An uneasy calm held over markets for most of the past week, allowing a widespread mild positive move. Debt, equities and commodities all gained ground. In part, the calm may reflect an early start to the summer doldrums, but the US 2Q GDP number – which came out on Friday – and the fact that [...]

by James

Sell in May go away! We hear it every year, but surely, there has rarely been a more tempting case than this year? Against a barrage of negative data, equities put in a storming performance last month, with the S&P 500 rising 9.4%. Slower rates of economic decline are a good thing, apparently. Given the [...]

by James

Away the bulls! The headlines were stolen by the G-20 last week, but arguably more important events took place elsewhere. While protestors were clogging up the City and world leaders were amassing photo credits, the ECB and FASB made moves that moved markets. True, the G-20 outcome gave a lift too, but more a sigh [...]

by James

Erstwhile saviour of the global financial system (destroyer of the UK’s) Gordon Brown has just announced the statement of the G-20 group in London. The market has reacted well, rallying strongly on the announcement of some $1 trillion of support for the global financial system. No question, it is good news, and the group avoided [...]

by James

Exciting times continue, world equities put in a strong performance last Monday, rising on the already thoroughly leaked Treasury plan to provide support to the financial sector. There are reasons a plenty to debate the logic of this rally, but markets spent the rest of the week consolidating that price move. By Friday’s close, the [...]

by James

Thanksgiving shortened the trading week, but there was no shortage of major events. From the bail-out of Citigroup, to the further expansion of the Fed’s balance sheet and the shocking attacks on India’s financial center, there is a palpable sense that the world has reached a turning point. The markets reacted interestingly, with equities finally [...]