Virus surge puts oil back on the defensive
Crude oil has following last week's surge already been forced back on the defensive by a resurgent virus, especially in Asia. Once again - and despite ongoing vaccine rollouts - it is raising questions about whether recently upgraded demand growth forecasts are too optimistic.
Macro Digest: The Green revolution in Germany, a boon to the EU and the euro
The Green Party in Germany this morning polled 28%, ahead of the CDU/CSU bloc at 21%. There is still a lot of time to September 26th, or as they say in German it could be "Das ist doch Schnee von gestern!" by then, but we have to pay close attention to this German election, which could bring the most momentous political revolution in Germany since the early 1990s and in the EU since the launch of the euro.
Podcast: Old fashioned risk-off a real change of pace
Today we look at a "classic" episode of highly correlated risk-off across markets, as equities suffered another ugly session in the US, followed by an even uglier session in Japan on concerns of new Covid lockdowns there, while the USD, JPY and safe haven bonds enjoyed broad strength. Netflix results and guidance added to the negative energy and we look at incoming earnings elsewhere, as well as key signs of a budding political revolution in Germany that could change the face of Europe after the September election. Finally, we discuss a key nomination hearing today for "anti-trust icon" Lina Khan, who would join the FTC if approved. On today's pod were Peter Garnry on equities and John J. Hardy hosting and on FX.
Market Quick Take - April 21, 2021
Sentiment soured badly in the US yesterday and in Japan overnight, aggravated by a broadly stronger JPY there. Japan may be on the verge of declaring a new state of emergency in Tokyo and Osaka, just a few months before the Summer Olympics are supposedly to be held. Elsewhere, Netflix dropped badly after hours on disappointing subscriber growth, the USD joined the JPY in strengthening, and Gold rose again as yields dropped.
Crypto Weekly: Buy the rumour, sell the news
The crypto-market was coloured in red over the weekend upon a fairly hectic week. Bitcoin tumbled to a low of 53,000 BTC/USD while Ethereum declined to a low of 2,000 ETH/USD on Sunday. Extended regulation and a 'buy the rumor, sell the news' moment were most likely the reasons for the red market. Since then, the market has recovered slightly.