 The financial markets were like in parallel universes last week. On the one hand, US stocks were boosted by trade optimism as the three major indices ended at record highs. On the other hand, Hong Kong stocks led Asian markets lower as unrest in the city continued, with no end in sight. Meanwhile, US bond traders seemed to be disagreeing to optimism in stocks, with 10-year yield closing notably lower. However, there was no "safe haven" nor "risk seeking" flow into the US markets as Dollar ended the week broadly lower. In the currency markets, New Zealand Dollar was indeed the strongest after RBNZ's surprised hold. Sterling was the second strongest as campaigns for December election are set to gather momentum. Australian Dollar was the worst performing one as job data put RBA on track for more policy easing next year. Dollar was the second weakest. AUD/NZD was surprisingly, but rightfully, the biggest mover last week. Dollar, bonds and stocks traders would need some more time to realign themselves. |
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