Archive for January, 2016

Early FX

Wednesday, January 13th, 2016

Via Kit Juckes at SocGen: Better Chinese trade data have boosted Asian currencies (including the Australian and New Zealand dollars) and weakening the yen (a bit). The Shanghai composite index is at its lowest level since August, WTI crude is under USD 31/bbl and copper prices remain under USD 200/lb mind ...

New Issues Today

Monday, January 11th, 2016

Via Bloomberg: IG CREDIT: 4 New Issues Expected to Price in U.S. Today 2016-01-11 15:01:00.0 GMT By Pham-Duy Nguyen (Bloomberg) -- List of new issues expected to price today: * Ecolab $600m (Baa1/BBB+) * 3Y (IPT +105 area); 7Y (IPT +150 area) * Books: BofAML, JPM * EOG Resources $bench (A3/A-) * 10Y (IPT+210/220); 20Y (IPT+225/235) * Books: Barclays, C, ...

What to Watch for Today

Monday, January 11th, 2016

Via Bloomberg: * (All times New York) * Economic Data * Labor Market Conditions Index Change, Dec., est. 0 (prior 0.5) * Central Banks * 12:40pm: Fed’s Lockhart speaks in Atlanta * 5:50pm: Fed’s Kaplan speaks in Dallas * Supply * 11:00am: U.S. to announce plans for auction of 4W bills * 11:30am: U.S. to auction $28b 3M bills, $26b ...

FX

Monday, January 11th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead   - Developments in China have seemed to overshadow other considerations as investors returned from the New Year - The shale production and reduction of energy dependency helped pave the way for the omnibus spending and tax bill - In addition to ...

Morgan Stanley Posits $20 to $25 Oil

Monday, January 11th, 2016

Via Bloomberg:   A rapid appreciation of the U.S. dollar may send Brent oil to as low as $20 a barrel, according to Morgan Stanley. Oil is particularly leveraged to the dollar and may fall between 10 to 25 percent if the currency gains 5 percent, Morgan Stanley analysts including Adam Longson said ...

Early FX

Monday, January 11th, 2016

Via Kit Juckes at SocGen: The second week of the year has started with about as much rain falling in London as the first and the mood isn't really any better.                                          ...

Tough Times for Dealers

Monday, January 11th, 2016

Via the FT: yesterday by: Alistair Gray and Ben McLannahan in New York Wall Street banks are poised to unveil another batch of lacklustre profits after the run-up to the Federal Reserve’s historic interest rate rise failed to boost their crucial trading businesses. Results to be presented over the next week and a half ...

At the Margin

Monday, January 11th, 2016

Via the WSJ: By Ryan Tracy Jan. 10, 2016 7:12 p.m. ET 14 COMMENTS WASHINGTON—The Federal Reserve is dusting off a legal power it has largely ignored for four decades, a move that could significantly expand the Fed’s influence over financial markets. Margin requirements—rules limiting what portion of stocks or bonds can be purchased through ...

Rand Flash Crash

Monday, January 11th, 2016

This one caught my eye as I awakened this morning. The South African Rand crashed at the open of FX trading on Sunday evening and at one point was down about 10 percent against the US dollar. As I write this early morning electronic missive it has recovered as is ...

Sunday FX Musings

Sunday, January 10th, 2016

Via Kit Juckes at SocGen: If my inbox is anything to go by, the big market issue this weekend is whether the Chinese authorities can restore confidence in their ability to manage an orderly adjustment of the Yuan. “China claims ‘healthy' financial system” makes the front page of the FT today ...