March Consumer Sentiment Rises to Pandemic High, USD Stronger 2021-03-12 15:00:00 Izaac Brook,
Consumer Sentiment and US Dollar Talking Points:
Consumer Sentiment Printed Strongly at 83.0 vs. forecast of 78.5.
One Year Inflation Expectations Fell Slightly Following Subdued CPI and PPI Prints.
The US Dollar Dropped Following the Release Before Rebounding Higher as Yields Rise. Advertisement
March Consumer Sentiment Rises to Pandemic High, USD Stronger
The University of Michigan’s preliminary consumer sentiment index for March printed at 83.0 vs. a forecast of 78.5, handily beating the forecast. This print marks the index’s highest point since last March, before the pandemic and related containment measures took effect. While sentiment remains well below its pre-pandemic levels, the solid print in March demonstrates that the outlook of consumers is improving.
Bank of Canada Holds Policy Steady, Remains Cautious - CAD Slightly Weaker 2021-03-10 15:00:00 Izaac Brook,
Bank of Canada and Canadian Dollar Talking Points:
Interest rates held at 0.25% and asset purchases continue at current pace of 4bln/week.
Statement remained cautious despite improving economic outlook.
USDCAD edged higher as Canadian Dollar weakened on cautious outlook. Advertisement
Bank of Canada Holds Policy Steady, Canadian Dollar Stronger
The Bank of Canada’s March policy decision came in as expected, with interest rates held steady and asset purchases unchanged. The accompanying statement recognized the resilience of the Canadian economy and stronger than expected economic growth, while also noting that considerable slack and a great deal of uncertainty remains. The BoC Governing Council noted that despite improvements in the economic outlook, “the recovery continues to require extraordinary support
ASX 200, Nikkei 225 Edge Lower as Risk Sentiment Remains Mixed
2021-03-02 23:00:00
Izaac Brook,
ASX 200 & Nikkei 225 Talking Points:
Nikkei 225 and ASX 200 Both Headed Slightly Lower in Tuesday’s Session
While Bond Yields Have Stabilized, Sentiment Remains Mixed
Weak US Trading Session Could Have Knock-On Effects in Other Risk Markets
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ASX 200, Nikkei 225 Edge Lower as Risk Sentiment Remains Mixed
As financial markets enter the one-year anniversary of the onset of pandemic-induced volatility, risk sentiment remains mixed. Late February’s longer-term bond market rout set off profit-taking and portfolio rebalancing across financial markets as risk-free rates moved higher.
During this volatility, the RBA doubled its typical QE purchase size in order to maintain its yield target on the 3-year Australian Government bond. The RBA then held its monetary policy unchanged on Tuesday.
S&P 500, Oil, Bond Fund Flows Amid Recovery-Fueled Rise in Yields
2021-03-03 16:00:00
Izaac Brook,
S&P 500, Oil, Bonds Fund Flows Talking Points:
S&P500-Linked SPY ETF Flows Have Been Mixed Amidst Rise in Yields.
Stall in WTI Rally Sees a Continuation in Outflows from Oil ETF USO.
Moves in US Yields Have Mixed Impact on Corporate and Treasury Bond ETFs.
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S&P 500, Oil, Bond Fund Flows Amid Recovery-Fueled Rise in Yields
Late February’s rise in US Treasury bond yields has had knock-on effects across financial markets. Longer-term yields in other developed countries rose in a similar pattern and equity markets moved to reflect the increasing risk free rate of return.
February ISM Manufacturing PMI Hits a Pandemic High, USD Firm Above 91.00 2021-03-01 15:00:00 Izaac Brook,
ISM Manufacturing & US Dollar Talking Points:
ISM Manufacturing PMI for January prints at 60.8 versus forecast of 58.8
Print is slightly higher than December’s, setting a new pandemic high
DXY strength continues following late February’s Treasury yields volatility Advertisement
February ISM Manufacturing PMI Hits a Pandemic High, USD Firms Above 91.00
US manufacturing activity in Februarybeat expectations as the ISM Manufacturing PMI printed at 60.8 versus a forecast of 58.8, hitting its highest level since 2018. While activity declined between December and January, February’s print shows continued strength from the manufacturing sector.