Morning Call: Aussie tumbles on Chinese coal ban
Senior Editor, Saxo Bank
Summary: Welcome to a busy session with multiple drivers at play, including a Chinese ban on Australian coal imports, some unexpectedly poor Japanese data and increased uncertainty about the Fed's rate trajectory. All the while, equities continue to "rally like crazy".
Macro Dragon: Welcome to WK # 33... RBNZ, BdeM, US + CH CPIs, Aussie Jobs Data
Macro Dragon = Cross-Asset Daily Views that could cover anything from tactical positioning, to long-term thematic investments, key events & inflection points in the markets, all with the objective of consistent wealth creation overtime.
FX Update: CAD adds to JPY wobbles against USD
The US dollar has notched higher in the wake of the US President Trump move against Chinese social media companies and a snag in the everything-must-go-up trade. US Congress was unable to reach agreement on new stimulus measures in the latest round of negotiations, but Trump seems ready to move unilaterally with executive action. Some focus on EM as we head into the weekend, the ruble in particular.
Market Quick Take - August 7, 2020
Equity futures pulled back sharply late yesterday after aggressive new highs in the US trading session after US President Trump banned TikTok and WeChat for use by individuals or companies in the US, to go in effect in September. In Asia, mainland Chinese chairs suffered a weak session, led by WeChat owner Tencent, while risk aversion elsewhere was modest.
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