 There were so many high profile events last week. In the end, the positive ones were more than enough to offset the negative ones. US-China trade truce was extended indefinitely and it looks closer than ever to have deal. MSCI's increase of weighting of Chinese stocks gave China another huge boost. Chance of no-deal Brexit faded much with UK Prime Minister Theresa May's new arrangements. On the other hand, escalation of Pakistan-India tensions and the collapse of Trump-Kim summit in Vietnam just gave the markets very brief impact. While economic data released during the week were mixed, talks of bottoming in global slowdown emerged, as risks are abating. The turn in sentiment pushed treasury yields sharply higher. Yen suffered broad based selloff as yield gaps widened sharply, with 10-year JGB staying negative. Though, Canadian Dollar took the weakest spot as much weaker than expected Q4 GDP suggested that its economy could be left behind by others. Late selloff in oil prices also did no favor to the Loonie. Sterling ended as the strongest, followed by Euro. But late strength in Dollar suggests that it's catching up very quickly. |
No comments:
Post a Comment