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Saudi 5-year CDS jump to 11-month high

The cost of insuring exposure to Saudi Arabia’s sovereign debt jumped to the highest level in 11 months on Monday after the kingdom faced increasing international pressure over missing journalist Jamal Khashoggi. Saudi Arabia’s 5-year credit default swaps rose to 100 basis points after closing at 89 basis points on Friday, according to data from…

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Geopolitical risks and yields dominate proceedings

Monday October 15: Five things the markets are talking about Following a weekend of warnings on global economic fragility from G10 finance leaders at an IMF meeting in Bali, has global equities starting this new week on the back foot, with regional bourses in Asia and Europe seeing red, while U.S equity futures are pointing…

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US Retail Sales to Support Dollar


The US dollar was higher against major pairs on Friday, but not enough to end up the week on positive territory. A stock market rout took its toll on the greenback and the subsequent rebound in stock prices supported the currency ahead of the weekend. Strong US data and a clear interest rate hike path…

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Friday’s relief rally in full swing

Friday October 12: Five things the markets are talking about Volatility, in particular, for equities, has notched aggressively higher this week, now that sovereign bond yields are beginning to price out cheap money. Stronger than expected U.S economic data and weak European underlying inflation in key countries is being blamed as the specific trigger for…

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Canada: Building permits, August 2018

Canadian municipalities issued $8.1 billion worth of building permits in August, up 0.4% from July. Strength in the non-residential sector drove the increase, while the residential sector declined for the third consecutive month. Non-residential sector: High value projects drive the increase In the non-residential sector, $3.2 billion worth of permits were issued in August, up…

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U.S producer prices increase for first time in three months

U.S. producer prices rose for the first time in three months amid a surge in gauges reflecting airfares and rail-transportation costs, a Labor Department report showed Wednesday in Washington. HIGHLIGHTS OF PRODUCER PRICES (SEPTEMBER) Producer-price index rose 0.2% m/m (matching est.) after a 0.1% drop in prior month; up 2.6% y/y (est. 2.7%) after 2.8%…

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Dollar gains pause, but probably not for long

Wednesday October 10: Five things the markets are talking about U.S treasury yields are largely stable, after declining from their seven-year high print yesterday. Euro equities are on the back foot after Asia stocks managed to break a multi losing session. Elsewhere, the ‘big’ dollar has stalled temporarily after U.S President Trump said the Fed…

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Will the bond market bloodbath resume?

Tuesday October 9: five things the markets are talking about The first day back in a holiday-shortened trading week again sees U.S Treasury yields creeping higher, trading atop of their seven-year high yields. This aggressive backing up of sovereign yields this month is again putting pressure on risk assets. However, overnight, equities traded mixed, with…

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Markets Yield to pressure?

Markets Yield to pressure? Not so far today as the markets have opened predictably quiet with Tokyo and New York celebrating their holidays. USDCNH is trading unpretentiously higher but the USD, in general, remain little-changed post-NFP.  Strength in labour markets, and with wage growth picking up, it suggests the US versus the rest of the…

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