Market Insights & Analysis

Read our analysts' daily briefings, together with our Market Snapshot reports.

29 Jan 2016 08:21

The Japanese yen weakened significantly overnight against the dollar after the Bank of Japan surprised market participants with additional monetary easing. Japanese bond yields dropped sharply on the announcement with ten year government bond yields dropping to a record low of 0.100% from a high of 0.230%. Today’s session sees the release of US Q4 GDP data and investors are hoping that the advanced reading for the final quarter of last year will offer some stability and encouragement to risk appetite.

18 Dec 2015 08:25
Mexico’s central bank followed the Fed yesterday and increased a key rate for the first time since 2008 as officials expressed their desire to keep in step with the US central bank in order to prevent and limit any currency distortions between the US dollar and Mexican peso. The Japanese yen strengthened substantially overnight after briefly trading above 123.50 against the dollar as the Bank of Japan offered additional support to the economy. Spot gold prices managed to find some stability around $1,050/oz during overnight trading as immediate support around this level managed to hold firm at the close yesterday.
30 Oct 2015 08:46
Treasury yields climbed higher on the US Fed’s hawkish outlook as increasing speculation of a December rates rise saw risk appetite for equities improve. While monetary policy in the US and the UK gears up for an eventual tightening, as expected the Bank of Japan held the annual rise in the monetary base at 80tn yen. The yen traded within a wide range against the dollar overnight, weakening towards 121.50 before swinging towards 120.30 towards the European open. Base metals prices as well as mining stocks came under renewed pressure yesterday as the Fed’s outlook for a potential December interest rate rise prompted a sell-off across a sector already beset by oversupply and lacklustre demand concerns.
26 Oct 2015 08:36
Chinese stocks closed higher for a third straight session, rising to a two month high, as investors welcomed Friday’s decision by the PBOC to cut interest rates as policymakers continued to wrestle with a slowing economy. Japanese investors were upbeat following the PBOC’s decision to push for more monetary easing as speculation that the Bank of Japan would also increase stimulus measures saw both the Nikkei 225 and TOPIX indices post steady gains, adding between 0.655-0.75% overnight.
07 Oct 2015 08:57
WTI front month futures extended gains for a fourth consecutive session, eyeing the key $50 per barrel level. The Energy Information Administration (EIA) said in its monthly outlook that US crude oil production fell 120,000 barrels per day in September compared to a month earlier. The API weekly oil inventories report showed yesterday that US crude oil inventories have shrunk by 1.2 million barrels for the week ending 2nd October.
22 May 2015 15:31
Global equity indices across Asia, Europe and the US saw substantial gains this week as investors opted to shrug off the largely tepid macroeconomic data releases over the past few days. Eurozone indices have struggled to match this impressive performance, with indices across the region weighed down by Greek debt concerns, however, tentative progress between Greece and its lenders propelled the DAX to its best week since the beginning of January, adding as much as 3% this week.
20 May 2015 08:09
Asian equities rallied higher overnight following a strong session in Europe with Chinese mainland equity indices leading the charge higher as both the Shanghai Composite and CSI 300 added over 2%. The yen weakened for a fifth straight session against the dollar during overnight trading, trading above 121.00 for the first time since mid-March as the currency remained on track to post its longest losing streak against the dollar since December last year. Angela Merkel and Francois Hollande have given Greece until the end of the month to reach a deal on its bailout programme as patience among eurozone officials started to wear thin.
30 Apr 2015 08:39
The US Fed moved to dampen expectations of an imminent rates rise as the recent string of weaker than expected economic data showed that growth was gradually losing momentum. Chinese interest rate swaps headed for their biggest decline since 2008 this month as the PBOC ramped up its stimulus efforts in a bid to support the economy. The Bank of Japan held off from additional stimulus this month opting to hold the expansion of the monetary base at 80tn yen this year despite the abating pressure of rising inflation. Brazil’s central bank increased its benchmark interest rate by half a percent bringing a fifth consecutive increase to the key rate.
08 Apr 2015 08:02
The IMF has warned of a prolonged period of lower growth, reigniting fears that the world economy will face considerable headwinds over the coming years which would present significant obstacles to governments and policymakers. Figures published yesterday by the ECB covering the first month of its QE programme indicated eurozone central bankers purchased government bonds to the tune of €52.5bn. Asian stock indices rallied higher overnight, building on the previous session’s gains with the Hang Seng leading the pack, surging over 2.5% higher overnight.
17 Mar 2015 08:12
Asian stocks rallied strongly overnight following the rally on Wall Street as risk appetite steadily improved. Investors across the region were further encouraged by the Bank of Japan’s decision to keep its record stimulus package unchanged with an annual rise in the monetary base of 80tn yen. Chinese stocks rallied to a seven year high with the Shanghai Composite and CSI 300 adding 1.55% and 1.39% overnight respectively, building on the previous session’s gains.
23 Feb 2015 08:10
The Greek government rushed to finalise a proposal for economic reforms after Friday’s last minute deal which saw the current bailout terms extended by four months. Asian benchmark equity indices rallied to fresh highs on progress between Greece and its creditors, building on Friday’s positive session on Wall Street as risk appetite steadily improved. Spot gold prices extended declines for a second straight session on Friday as a tentative agreement between Greece and other eurozone members was made.
18 Feb 2015 08:07
Global equity markets traded cautiously higher both yesterday and overnight as investor’s attention remained firmly on the Greek bailout talks. Japanese benchmark indices extended gains overnight with the Nikkei 225 adding 1.18% while the TOPIX gained 1.41% after the Bank of Japan opted to maintain monetary stimulus.
16 Feb 2015 07:59
Asian equities climbed higher overnight as Japanese benchmark indices rallied to a seven year high with the Nikkei 225 adding 0.51% and the TOPIX gaining 0.69% after the latest data showed the country had emerged from recession. The Japanese yen gained further ground against the dollar, posting gains for a third straight session during overnight trading as the currency traded towards 118.18 early on. Greece and its creditors extended talks over the weekend ahead of today’s meeting of eurozone finance ministers as officials on both sides rushed to reach an agreement regarding the renegotiated terms of the Greek bailout.
13 Feb 2015 08:00
Asian equity indices extended gains overnight as renewed optimism in European and US markets spilled over to the Asian session. The German economy grew faster than expected during the last quarter of 2014 as preliminary Q4 GDP data released earlier this morning saw the eurozone largest economy grow by 0.7% q/q. Markets breathed a sigh of relief as steady progress regarding Greece’s bailout was being made with both Germany and Greece continuing to work on a deal to help the indebted nation.
21 Jan 2015 08:00
The yen recovered most of yesterday’s losses against the dollar during overnight trading, strengthening briefly towards 117.30 before settling around 117.50 ahead of the European session. Spot gold prices rallied to a five month high on Tuesday with prices surging 1.54% higher as the yellow metal found firm support around the previous session’s close. Three month LME zinc prices added 1.3% yesterday to end the session at $2,100/tonne as investors expressed quiet optimism ahead of today’s US housing data.
13 Jan 2015 08:06
Asian markets experienced further risk aversion during overnight trading as sliding oil prices struggled to find a floor, depressing appetite for risk assets across the region. The yen traded towards a four week high, trading towards 117.74 against the dollar before erasing these early losses as we neared the European open.
04 Dec 2014 08:21
Asian equities followed Wall Street higher during overnight trading as investor optimism that growth in the US was steadily improving and a weaker yen supported risk appetite. Spot gold prices pulled back during the Asian session after rallying off support towards $1,200/oz. With both the ECB and BoE due to meet today investors will have plenty to keep them engaged.
03 Nov 2014 07:53
The dollar rose to a seven year high against the JPY as the greenback built on both Friday’s gains and the advantage of Japanese markets being closed today for the Culture Day holiday. The dollar index was subsequently supported to a four year high as moves overnight saw the index extend towards 87.40 before shedding some of these early gains as we approached the European open. China’s official manufacturing PMI fell to 50.8 in October against expectations of a modest m/m increase to 51.2 from 51.1 in September.
31 Oct 2014 14:49
European equity markets experienced strong buying activity on Friday after the BOJ announced that it would significantly ramp up stimulus by increasing the monetary base to 80tn yen against expectations that the monetary base would increase by 70tn yen this year. Spot gold prices sank to their lowest level since July 2010 as investors piled back into equity markets.
15 Jul 2014 09:32
Investors await Federal Reserve Chair Janet Yelen’s testimony to the Senate today and to the House Committee tomorrow. UK CPI inflation accelerated to 1.9% y/y in June, beating analysts’ expectations of 1.6%.
18 Feb 2014 08:10
Japanese equity markets surged higher after the BOJ announced it would continue its monetary easing programme to boost lending and meet target inflation. Chinese equity markets came under significant selling pressure overnight as the PBOC sold repo contracts for the first time in eight months, withdrawing 48bn yuan from the banking system as money market rates fell to their lowest level in six weeks. Spot gold prices snapped a three day rally, erasing the previous day’s gains and pulling back from a three and a half month high as market expectations that the Fed will continue down the path of tapering slowed the yellow metals advance.
03 Dec 2013 07:56
US markets closed lower yesterday with the S&P 500 testing support at 1,800 and the DJIA holding firm above 16,000, closing 0.27% and 0.48% lower respectively. Rio Tinto is set to cut capex by half as global commodity prices continue to face significant headwinds. Regulators will meet on 10th December to discuss the final version of the Volcker rule, according to Bloomberg. Asian markets rallied higher, with the Nikkei gaining for the fourth straight session after stimulus speculation boosted risk appetite.