Correlation between US stocks and bonds has turned positive and continued to rise. The phenomenon, not seen since September 2020, probably reveals increasing risk aversion, driven by rising inflation expectations. The correlation could return to negative, thus facilitating asset diversification, if inflation proves transitory and central banks could maintain its expansionary monetary policies. Otherwise, sustainably
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Will be extended through to June 20. The extension had been well and truly flagged, over and over. Thus, no surprise. Japan’s Tokyo Olympics re scheduled to begin on Friday, 23 July 2021 (through to Sunday 8 August) … there are lots of murmurings of cancellation, let’s see how it goes. Invest in yourself. See our
NEW YORK: prices were steady on Thursday, bolstered by strong US economic data that offset investors’ concerns about the potential for a rise in Iranian supplies. Brent fell 2 cents to $68.85 a barrel by 10:52 a.m. EDT (1452 GMT). US West Texas Intermediate (WTI) crude was unchanged at $66.21 a barrel. The number of
Sterling jumps broadly today as a BoE officials indicated that rate hike could come next year. UK Prime Minister Boris Johnson also said there is nothing in data that suggests a delay to reopening on June 21, even though some more time is needed to assess the situation. Nevertheless, Canadian Dollar is even stronger for
NYT report The era of high spending won’t end any time soon. Voters don’t care about deficits anymore and neither do governments. The NYT reports that Biden will propose the federal government to spend $6 trillion in the 2022 fiscal year, and for total spending to rise to $8.2 trillion by 2031. The report has
NEW DELHI: Gold prices retreated from its four and half month high on Thursday, hurt by an uptick in the US dollar and bond yields, while investors awaited key economic readings out of the United States this week. Domestic markets, too, witnessed a muted trade. The dollar index rose to a one-week high against rivals,
Overall markets are mixed for now, except the clear strength in New Zealand Dollar this week. While Aussie is also trading higher against others, it’s lagging Kiwi by a mile. Dollar recovered overnight but once again lost momentum quickly. Canadian Dollar has also found some footing after yesterday’s pull back. In other markets, Asia markets
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do
NEW DELHI: Copper prices on Wednesday traded up by 0.41 per cent at Rs 748.30 per kg in the futures market on the back of a pickup in the spot demand. On the Multi Commodity Exchange, copper contracts for delivery in June traded higher by Rs 3.05, or 0.41 per cent, at Rs 748.30 per
Following a weak first quarter, the strength in EURUSD has gathered momentum. The pair is the second strongest among majors quarter-to-date. A more upbeat economic outlook, heightened inflation forecasts and expectations of ECB’s tapering are key driving forces of the recent rally. Indicators Pointing to Stronger 2Q21 Leading indicators have pointed to an upbeat 2Q21.
Forex news from the European trading session – 26 May 2021 Headlines: Markets: NZD leads, EUR lags on the day European equities lower; S&P 500 futures up 0.3% US 10-year yields flat at 1.56% Gold up 0.3% to $1,905.52 WTI down 0.4% to $65.84 Bitcoin up 6.1% to $39,929 It was a quiet session but
BEIJING: China‘s banking regulator has asked lenders to stop selling investment products linked to commodities futures to mom-and-pop buyers, three people with knowledge of the matter told Reuters, to curb investment losses amid volatile commodity prices. It has also asked lenders to completely unwind their existing books for these products, which they manufacture and sell
The RBNZ delivered a less dovish message in May than a month ago. While leaving all monetary policy measures unchanged, it upgraded the inflation forecast and revised lower the unemployment rate. The central bank also pushed forward the first rate hike to 3Q22. Kiwi rallied to highest since February after the news. While the uncertainty
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do
HANOI/BEIJING: Commodities markets are unlikely to experience a “super-cycle” in the next few years, experts and audience polled at an online metals seminar on Tuesday said. “We’re not a huge believer in a super-cycle now. You’ve started to see some central bank starting to taper bond buying and if they are not tapering, they’ve started
Euro surges broadly today, while German DAX and Stoxx 600 hit new record highs. Strong German business climate reading gave sentiments a strong lift. For now the common currency is only out-performed by New Zealand Dollar, and followed by Swiss Franc. On the other hand, positive market sentiment makes Yen the weakest one, followed by
Latest data released by UK CBI – 25 May 2021 Prior 20 Total distributive reported sales 43 Prior 30 A bit of a miss on the headline reading and that suggests some slowing in retail sales after the flurry of demand seen in April after lockdown measures were lifted. CBI notes that: “The fact that
Gold reversed course on Tuesday, climbing towards last week’s 4-1/2-month peak, supported by a weaker dollar and bond yields after Federal Reserve officials affirmed their support to keep monetary policy accommodative for some time. Spot gold was up 0.2% to $1,885.47 per ounce by 0724 GMT, after falling as much as 0.5% earlier in the