• Is RRR a Primary Policy Tool for China?

    The Chinese People’s Bank cut its one-year lending rate for the second month in a row, following the steps of its West colleagues, albeit at a slower pace.

  • The Friday Forex Takeaway

    Key Points From This Week GBP has been the standout performer, ending the week highest against USD out of the G10 currencies. The continued short squeeze related to receding risks of a no-deal Brexit have been the main driver. NZD on the other-hand has been the weakest out of the G10 currencies against USD. Despite […]

  • UK Supreme Court Verdict Due Early Next Week

    Three Day Hearing Concludes The UK Supreme Court concluded its three-day hearing yesterday over the legality of UK PM Boris Johnson proroguing parliament earlier this month. Following a Scottish court ruling that Johnson acted illegally, the case was submitted to the Supreme Court, the highest court in the UK. Following the days of hearings, the […]

  • Daily Market Outlook, September 20, 2019

    Main Market Themes US stocks ended on a mixed note overnight as markets continued to digest the Fed’s interest rate outlook while awaiting any meaningful development in US-China trade negotiation. The Dow slipped by 0.2%, the S&P 500 was unchanged and NASDAQ picked up a mere 0.1%. Treasury yields fell across the curve by 1-2bps. […]

  • The Crude Chronicles 19-09-2019

    Key WTI Headlines Over the Week The CFTC COT update for the week ending September 10th showed net long positions in WTI futures rose +44,048 contracts to 428,205 for the week. Speculative long positions jumped +18,639 contracts while short positions plunged -25,409 contracts. Benchmark WTI prices commenced the week with a 20% move north as […]

  • Daily Market Outlook, September 19, 2019

    Main Market Themes US stocks bounced off initial lows and ended largely flat overnight while UST curve flattened after the Federal Reserve announced a 25bps cut in its Fed Funds Rate as widely expected but signaled no more reduction in the benchmark rate this year. The decision to cut is not unanimous with a 7-3 […]

  • September BOE Meeting Preview

    Expectations For The September BOE Meeting The BOE, led by Governor Mark Carney, is due to make its last rate-setting decision today ahead of the October 31st Brexit deadline. Given the proximity of the deadline as well as the persistent uncertainty over the outcome, the consensus forecast is for the BOE to keep policy unchanged […]

  • Did the Fed Make too Much Quantitative Tightening?

    The Fed’s primary technical task is to control borrowing costs in the money market, but does it always manage to do this? Yesterday’s occurrence on the repo market once again showed that even the omnipotent Fed needs to be alert.

  • September BOJ Meeting Preview

    Expectations For September BOJ Meeting Bank of Japan policymakers hold their September rate-setting meeting this week and expectations are divided regarding the likelihood of further easing. Meeting last in July, the BOJ said that should the global slowdown threaten the Japanese economy, it would act “without hesitation” to ease further. Speaking at the post-decision press […]

  • Daily Market Outlook, September 18, 2019

    Main Market Themes US stocks rebounded to close slightly higher overnight as the concerns over the oil market eased a little with investors now shifting focus to the Federal Reserve’s rate decision.  Major indexes struggled to post meaningful gains throughout the session The Dow Jones closed 0.1% higher while the S&P500 and NASDAQ each rose […]

  • September FOMC Meeting Preview

    Expectations For The September FOMC Meeting September FOMC meeting today is expected to see the Fed reducing rates by a further 25 basis points. When the Fed last eased its headline policy rate in July, Powell noted that policymakers deemed the rate cut to be “Mid-cycle adjustment” and not the beginning of a length easing […]

  • How the Oil Shock Affected Expectations of the Fed’s September Rate Cut?

    A growing discord between the Fed’s top managers from the last meeting about when the preventive policy should begin and what its intensity should be is likely to expand with debates about the effects of the recent oil shock on the US economy.

  • The IndeX Files 17-09-2019

    Risks Remain Amidst Positive Backdrop The fundamental backdrop for equities remains supportive in the near term though benchmarks in the US, Europe, Asia and the UK have seen a pause in momentum so far this week. The announcement of a new range of easing measures from the ECB at its meeting this month has helped […]

  • Daily Market Outlook, September 17, 2019

    Main Market Themes Markets were mired in risk off mode with risk assets under selling pressure yesterday, as the weekend’s drone attacks on Saudi’s oil facilities heightened geopolitical concerns between the US and Iran. Major stock indices ended in the red in the US and Europe but mixed in the Asian markets, amid weaker than […]

  • September SNB Meeting Preview

    Expectations For September SNB Meeting Central bankers across the G10 space have moved drastically to the dovish side this year. A renewed outbreak of trade tariffs between the US and China has exacerbated the global downturn, keeping inflation subdued across the board. With the Fed, the ECB, the RBA and RBNZ each having eased further […]