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A Couple More Events Before Seeing The End Of Difficult Week For Investors

Marc Chandler profile picture
Marc Chandler


  • US and Canada jobs and Mexico's CPI stand in front of the weekend.
  • OPEC announcement is also awaited.
  • Equities are stabilizing after US recovered yesterday and the dollar is slightly firmer against most of the major currencies.

Overview: Global equities have stabilized after US equities recovered yesterday, with the NASDAQ 100 staging its biggest reversal in eight months and the S&P 500 recouping almost three percent to close 0.15% lower. Asia Pacific equities were mostly higher. Hong Kong shares, including the mainland shares that trade there, were the notable exception. European shares are rebounding as well. With every sector higher, the Dow Jones Stoxx 600 is up about 1.3%, which if sustained would be the biggest gain since the end of October. US stocks are trading heavier (~0.6%), but the employment data will be reported an hour before the market opens and is bound to change it. Core bonds yields in Europe are slightly firmer, while peripheral yields are softer, led by a five basis point decline in Italy's benchmark yield to leave it nearly flat on the week. The US dollar is slightly firmer against the major currencies, with the New Zealand dollar resisting the pressure. An announcement for OPEC+ is still awaited, leaving crude prices little changed.

Asia Pacific

Many traders saw the arrest of Huawei CFO in Canada as a threat to the still unclear US-China trade agreement. Not only have the US and China made separate claims, but the US officials have different spins themselves. Canada's Prime Minister Trudeau says he had a few days notice of the arrest. President Trump says he did not know by National Security Adviser Bolton said that he knew. The question is not so much of the veracity of Trump's claim, but if President Xi knew. Given the security apparatus, Wanzhou's arrest was probably not a total surprise. Her arrest makes for bad optics, for sure, but we suspect that it does not change the bigger game. The sanctions earlier against ZTE, which ended up paying $1 bln, offers a recent precedent. The absence of much more than a perfunctory response suggests China

This article was written by

Marc Chandler profile picture
Marc Chandler has been covering the global capital markets in one fashion or another for 25 years, working at economic consulting firms and global investment banks. A prolific writer and speaker he appears regularly on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009 Chandler was named a Business Visionary by Forbes. Marc's commentary can be found at his blog (www.marctomarket.com) and twitter www.twitter.com/marcmakingsense

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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