 It seems that the impacts of poor economic data and Fed's dovish turn on the markets are "roughly balanced" for now. Stocks in the US and Asia turned mixed and stayed mixed since yesterday. Poor Chinese manufacturing data gives the markets nothing to cheer for, yet there is no notable selloff in equities. Dollar continues to recover post FOMC selloff and it's for now the strongest one for today, followed by Yen. On the other hand, commodity currencies are the weakest, led by Aussie. The two-day US-China trade talks ended without anything concrete, expect China's pledge to buy 5M tons of soybeans per day. The demand on enforcement of the agreement was emphasized throughout. And China seemed to have listened. But even Trump admitted it's not yet at the stage to set up a meeting with Chinese Xi to seal the deal yet. The next milestone will be USTR Lighthizer's visit to Beijing after Chinese New Year. For now, Dollar and stocks will turn to today's non-farm payroll first. In other markets, the most notable development is the free fall in US treasury yields overnight. 10-year yield dropped -0.60 to 2.635, moved further away from 2.7 handle. 30-year yield dropped -0.048 to 3.005, threatening 3.0 handle. Major US stock indices were mixed. DOW dropped -0.06%. S&P 500 rose 0.86%. NASDAQ rose 1.37% Asian markets are also mixed. Nikkei closed up 0.07% at 20788.39. Hong Kong HSI is down -0.21%. China Shanghai SSE is up 1.30%. Singapore Strait Times is down -0.02%. Japan 10-year JGB yield is down -0.0188 to -0.016. | 
No comments:
Post a Comment