Trade Optimism and the Recovery in Oil Boosts Risk Appetites

Jan 11 11:01 2019 Print This Article

Overview:  Optimism on trade talks between the US and China coupled with the biggest rally in WTI in two years (11%+) have helped keep the equity market recovery intact. The MSCI Asia Pacific Index rose today, the eighth time in the past ten sessions, while the Dow Jones Stoxx 600 in Europe is closing in on its second consecutive weekly advance.  The S&P 500 has a five-day rally in tow and is likely to extend its gains for a third consecutive week.  Benchmark 10-year yields are mostly softer, though on the week, core bonds are little changed.  In Europe, peripheral bonds and France saw premiums over Germany shrink.  The dollar is heavier against all the majors but sterling.   On the week, the greenback has slipped against all the majors, with sterling and the yen the laggards, while the dollar-bloc and the Norwegian krone leading the way higher.  The Chinese yuan is the strongest currency on the day rising about 0.75%, and on the week, with its nearly 2% advance.  

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About Article Author

Marc to Market

Marc Chandler has been covering the global capital markets in one fashion or another for more than 25 years, working at economic consulting firms and global investment banks. Chandler attended North Central College for undergraduate work, where he majored in political science and the humanities. He holds master's degrees from Northern Illinois University and University of Pittsburgh in American History and International Political Economy. Currently Chandler teaches at New York University Center for Global Affairs, where he is an associate professor. A prolific writer and speaker he appears regularly in the press and has spoken for, and is an honorary fellow of, 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. In 2009, his book, Making Sense of the Dollar, was published by Bloomberg Press and received a Bronze Award from Independent Publishers.

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