Market Quick Take - May 29, 2020
US markets finished the day almost unchanged after pulling to new highs for the cycle briefly yesterday as caution returned on US President Trump announcing that today would bring new measures against China. The intensifying concerns linked to US-China tensions have likely driven the cautious stance in Asian markets overnight.
The “nationalization” of the bond market is the ultimate rampart against sovereign debt crisis
In today's note, I will argue that a sovereign debt crisis in developed countries has a near-zero probability of happening due to central bank interventionism which virtually avoids a remake of the 2012 crisis.
Macro Dragon: Big Hat, Lots of Cattle... USDCNH Up, AUDUSD to potential tank big time...
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.
Divided Europe: The battle between loans and grants
The EC is due to present today its proposal of EU budget for the period 2021-27 and the details of the recovery plan. It will open a long and intense period of negotiations between member states regarding the financial instrument that could be used (loans or grants) to help countries in need. A final agreement is expected by at the next EU Council meeting in June. In the interim, Europe is once again wasting precious time needed to fight the crisis.
Market Quick Take - May 27, 2020
US indices rose to new highs through major resistance yesterday, but were sold rather heavily into the close, keeping the technical situation somewhat in limbo. Overnight saw what seems the inevitable bounce-back in risk sentiment, even as the USDCNY exchange rate has pressed higher and could trigger unease on whether China intends to allow its currency to weaken further.