Australian Dollar

Corporate earnings were supposed to give Wall Street a lift on Friday night but some cautious revenue estimates from big tech saw a continuation of the risk off mood that has been gripping Asia most of the week due to the Chinese tech stock selloff.

Not a very positive end to the trading week here in Asia as the bath of blood in Chinese returned today after a very short reprieve, spilling over into other bourses as a result.

Forex has interesting again as the US dollar is suddenly weak throwing up a range of consequences.

Key GDP and unemployment data in the US overnight put paid to the idea that the Fed  may still be hesitant to normalise interest rates with the USD falling back against all the majors while Wall Street remained elevated.

The latest FOMC meeting did not translate into a lot of volatility overnight with Wall Street largely unchanged while Treasury yields eventually clawed back some intrasession gains due to the lack of an outright tapering signal.

Forex was anything but boring last night with China moving to rescue stocks, the Fed delivering outright confusion and markets moving to price more deflation.

The bloodbath in Chinese tech stocks has abated slightly although it has spilled over into other Asian stocks with overseas markets last night not helping with the risk taking despite some stellar corporate earnings on Wall Street.

Strong corporate earnings could not keep Wall Street elevated overnight, as the self induced selloff in Chinese tech issues turned into a bath of blood now spilling over and upsetting the mood in risk taking world.

DXY eased last night as we approach Fed day tomorrow.

A bloodbath in Chinese tech stocks is putting a dampener on risk taking here in Asia while European and US futures indicate lower opens this evening.

MUFG on the Fed this week: Fed in focus with USD set to remain supported as shorts are lightened USD: Fed tapering discussions “progressing”.

Strong corporate earnings kept Wall Street elevated overnight, but only just with the selloff in Chinese tech issues overshadowing the new record highs as Treasury yields bounced a little after some strong auction results.

Forex markets were haywire last night as markets try to digest slowing recoveries in both the US and China and what authorities are going to do about it.

While Wall Street made a new record high on Friday night that embiggened Asian stocks today, Chinese stock markets are selling off on their own as US-listed issues bear the brunt of Beijing’s self-induced tech breakdown.

From JPM comes the understatement of the century: The financial stability risks of stablecoins The financial stability risks of stablecoinsAmong the more interesting and potentially impactful developments of explosive growth in cryptocurrency markets has been the advent and broadening acceptance of stablecoins.

XJO is at a record high this morning: The Australian dollar is soft: With bonds modestly bid: Big Iron is right at record highs.

Nobody can stop the music as Wall Street surged once more on Friday night to a new record high with the latest corporate earnings a strong tailwind.

Forex was stable Friday night as the week’s fireworks subsided and risk rallied hard.

Asian stock markets are listless going into the end of the week due to the absence of Japanese traders and continued concern over delta variant outbreaks in the region.

DXY was firm last night as EUR slipped on new ECB guidance.

Sentiment continues to swell positive with another solid night across all equity markets with tech stocks leading the way this time due to some solid earnings results on Wall Street.

Optimism is creeping back across Asian stock markets in response to the broad moves higher on both sides of the Atlantic as the buy the dip crowd steps in, helped along by a surge in oil prices.

The big fill in the recent dip in equity markets continued overnight with European shares outshining Wall Street, although the latter is almost back to where it started.