Recent Trading Articles - Page 53 of 59

Financial Markets Daily Commentary

KBC Sunset Market Commentary 01/04/2022 via Trader Talent

Sunset Friday, April 1, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • Investors were relatively cautious to place strong directional bets at the start of the new quarter. There was no follow-through price action on yesterday’ risk-off move. Or was it simply an end of quarter repositioning? Whatever, Asian equity investors took a cautious start to the new quarter. There were again plenty of diffuse stories on the developments in Ukraine, the next round of negotiations between Russia and Ukraine in Turkey and the payment of gas supply in rouble as asked for by Russian …

Financial Markets Daily Commentary

KBC Sunrise Market Commentary 01/04/2022 via Trader Talent

Friday, 1 April 2022 Please click here to read the PDF version Markets • The massive core bond yield surge eased or reversed after having experienced the worst month in many decades. European swap yields registered the biggest monthly jump since the creation of the EMU, even after giving up 5.7 (30y) to 11.3 bps (5y) yesterday. German Bunds hugely outperformed US Treasuries with yields 6.6 (30y) to 10.9 bps (5y) lower. Short-term US yields’ late-session last hurrah brought them back in positive territory for the day. The 5y closed 2.9 bps higher. Q1 thus ended with a 30y/5y inversion …

Financial Markets Daily Commentary

KBC Sunset Market Commentary 31/03/2022 via Trader Talent

Sunset Thursday, March 31, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • ECB chief economist Lane spent most of today’s speech in Paris reminiscing on the ECB’s “successful” monetary policy response to the pandemic. He took the opportunity as net asset purchases under the Pandemic Emergency Purchase Programme officially end after today. The ECB will have bought over €1.7tn out of its €1.85tn PEPP-portfolio. This compares with around €3.2tn cumulative asset purchases under the APP-umbrella, accumulated since the end of 2014. Turning to recent developments, Lane points out that current high inflation rates reflect to a …

Financial Markets Daily Commentary

KBC Sunrise Market Commentary 31/03/2022 via Trader Talent

Thursday, 31 March 2022 Please click here to read the PDF version Markets • Rising energy prices after Germany initiated the first of its three-phased emergency plan and red hot European inflation prints from Belgium over Germany to Spain smacked German bunds in real Will Smith style. Short-term yields at some point rose 11.5 bps (2y). The rise was mainly driven by inflation expectations (new 14y high in the 10y). Net changes eventually amounted to 1.3 bps (10y) to 5.5 bps (2y), still underperforming USTs. The American yield curve bull steepened, changing -2.6 bps (30y) to -6.8 bps (3y) during …

Financial Markets Daily Commentary

KBC Sunset Market Commentary 30/03/2022 via Trader Talent

Sunset Wednesday, March 30, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • Two main stories were running the show on markets today. Both of them supported the ongoing core bond sell-off which recently concentrated on European markets. Germany initiated the first phase of a three-staged emergency plan to secure natural gas supplies (see below). Spooked markets send Dutch gas prices about 10% higher while Brent oil adds 3.4% in a spill-over move. Both boost inflation expectations for a tenth day (!) straight to a new 14-year high (2.84%). Today’s national inflation readings (March) are testament …

Financial Markets Daily Commentary

KBC Sunrise Market Commentary 30/03/2022 via Trader Talent

Wednesday, 30 March 2022 Please click here to read the PDF version Markets • Ceasefire talks in Istanbul showed signs of progress. Ahead of the negotiations, Ukraine indicated openness to neutrality and adopt a non-nuclear status in return for security guarantees. Afterwards, and to “increase mutual trust”, Russia said it would significantly scale back military activity around Kyiv. Western officials stayed skeptical but equity markets didn’t. Stocks jumped up to 3% in Europe and almost 2% in the US. Oil prices intraday retreated 9% but capped losses to a little over 2% in the end (Brent at $110/b). EMU yields …

Financial Markets Daily Commentary

KBC Sunset Market Commentary 29/03/2022 via Trader Talent

Sunset Tuesday, March 29, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • High-level talks in Turkey between Ukraine and Russia finally seem to slowly moving in the direction of agreeing on a cease-fire. The FT reported on it first and it was later confirmed by Ukrainian negotiator Podolyak. Russian negotiator Medinsky talked about a potential Putin-Zelenskiy meeting. Russia would also sharply cut military operations near Kyiv and Chernihiv. European stock markets surged by over 3%. The EuroStoxx50 returned above 4000 for the first time since February and is testing the December/January lows which previously served …

Financial Markets Daily Commentary

KBC Sunrise Market Commentary 29/03/2022 via Trader Talent

Tuesday, 29 March 2022 Please click here to read the PDF version Markets • The violence to which bonds sold off in Asian dealings yesterday eased a bit in European and US trading hours. The Japanese 10y yield stayed marginally above the 0% + 25 bps upper limit for most of the day still, even as the BoJ offered unlimited bond buying twice. Front end yields in the US jumped almost 14 bps at some point before paring gains as the session evolved to about 6 bps (2y, 3y). Bidding metrics of the dual ST bond auction eased. The $50bn …

Financial Markets Daily Commentary

KBC Sunset Market Commentary 28/03/2022 via Trader Talent

Sunset Monday, March 28, 2022 Daily Market Overview Click here to read the PDF-version of this report. Markets • This morning, Asian bond markets were overwhelmed by a new wave of panic selling in the wake of Friday’s steep rise in US yields. In order to reinforce its commitment to decouple from broad policy normalization, the Bank of Japan under its Yield Curve Control framework made two offers to buy an unlimited amount of 10-y bonds to prevent the 10-y yield from exceeding the 25 bpn allowed deviation from the 0.0% target. The Bank will make similar buying offers over the next …

Financial Markets Daily Commentary

KBC Sunrise Market Commentary 28/03/2022 via Trader Talent

Monday, 28 March 2022 Please click here to read the PDF version Markets • The Interfax report on Friday suggesting Russia may be refocusing on the “complete liberation of Donbas” caused yet another sharp core bond selloff. Markets believe such de-scaling of the conflict to the eastern regions of Ukraine is the first step in ending it. This would ultimately result in less economic uncertainty and allow central banks to push through with policy normalization. It explains the hefty bear flattening in both the US and Europe. US yields jumped 4.6 bps (30y) over 13.2 bps (2y) to 14.7 bps …