A daily summary and commentary of events and factors that affect the global markets, with a particular emphasis on the foreign exchange markets.
Share this story:
Alan Rose Foreign Exchange Head Trader
U.S. equity and bond markets are closed today to honor former President George H.W. Bush, but the foreign exchange markets are open.
A respite is welcome after a tumultuous day yesterday where U.S. equities and interest rates collapsed partly due to continued anxieties over U.S. – China trade undermined by vague and inconsistent comments from the White House and the President. Overnight, the Chinese attempted damage control to prevent another free-fall in the markets by stating that the recent meeting was “very successful” and promised to quickly implement items of agreement with the U.S. to meet the scheduled timeline.
Actions speak louder than words for the markets right now - conflicting statements from the White House yesterday and vague commitments from China did little to help confidence and stabilize the markets. Asian and European equities are all in the red today as markets remain preoccupied with Fed policy, a flattening yield curve and interest rate inversion, and concerns about future U.S. and global growth are sending investors to the sidelines.
Volatility is here to stay in the short term. There is too much uncertainty now with headwinds and political uncertainty coming from multiple directions. The U.S. dollar so far has weathered much of the turmoil in equities and interest rates but is at risk. Importers of currencies should continue to be proactive about managing their portfolios.
HERE ARE THE KEY NEWS STORIES FROM OVERNIGHT:
Aussie Q3 GDP came in weaker than expected at 0.3% against expectations of a gain of 0.6%. YoY GDP fell from 3.4% to 2.8%.
India kept interest rates unchanged at 6.50% as expected.
Toronto housing sales disappointed again and saw the biggest decline since March, falling by 3.4%. The average price of a home in Toronto is $575,200.00.
Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos!
Follow City National Bank on social media:
Investment and Insurance Products:
Are Not insured by the FDIC or any other federal government agency
Are Not deposits of or guaranteed by a Bank or any Bank Affiliate
May Lose Value
This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. The Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.
Here's what this indicator is saying about US stocks right now. ACTIVE INVESTOR WEEKLY EDITION: January 21, 2022 View in a browser FIDELITY VIEWPOINTS ® WEEKLY EDITION: January 21, 2022 Bollinger band stock signal Here's what this indicator is saying about US stocks right now. Read more CHART OF THE WEEK Inflation and corporate consolidation US industries have become
Learn how to keep all your accounts—not just the ones at Fidelity—secure. November 18, 2021 View in a browser FIDELITY VIEWPOINTS ® WEEKLY EDITION: November 18, 2021 What to do after a data breach Learn how to keep all your accounts—not just the ones at Fidelity—secure. Read more What's ahead for your RMDs Make sure to take your required withdrawals this year, then start to plan ahead.