Market Overview

Interest rates are low, so stock valuations should be high.  After all, a lower discount rate means that company cash flows are worth more; hence, a higher stock price. And the higher yield...

A new phase in the markets began this month. The Federal Reserve ended its QE3+ purchases. The Bank of Japan unexpectedly and dramatically stepped up its asset purchases under its QQE operations. The...

There are things going on with the financial markets currently that seem just a bit "out of balance." For example, asset prices are rising against a backdrop of global weakness, deflationary pressures...

Earlier this week, Japan announced that its gross domestic product had declined again, pushing the country into recession -- the definition of which is two consecutive quarters of negative GDP. Most...

Last week’s review of the macro market indicators suggested, heading into the last full week before the Holiday season and November Options Expiration, sees the equity markets continued to look...

Words Are Important.  That's not just a headline, it's reality.Draghi says the ECB will ‘do what it must’ on asset buying to lift inflation -- not ‘what it thinks would be best...

Paul Krugman seems to be having a supply-side-economics moment… sort of. Raising taxes, the NY Times columnist and Nobel laureate has been arguing lately, threatens Japan’s fragile...

On Monday 24 November (depending on market conditions), SCBC will start introducing a new loan (SE0006452900) that matures on 17 June 2020 (thus fitting in between SGB1051 and SGB1052 on the...

Official comments have injected volatility into the foreign exchange market. As we anticipated, Japanese officials pushed back against the seemingly free-fall in the yen sparked by the aggressive BOJ...

The EUR/USD has been more buoyant than expected recently, even though the recent data from Eurozone disappointed and US data were relatively strong. I believe that in order to answer this question, we...

Market MoversIt is a very thin calendar and most focus will be on speeches by Draghi and Weidmann. However, they will both speak at the European Banking Congress and there will probably be much less...

Original post

Quiet on the eastern frontIt was a quiet session in Asian markets, says Martin Davis, a trader at Saxo's Singapore hub. The day's trading saw the euro, Cable, Aussie and Kiwi dollars, and gold held in...

What’s fair value for a currency? Actually, if you think about it, it’s a pretty stupid question, even if we ask it all the time. There is no such thing as fair and frank in the...