BOC Archives - The Industry Spread

Risk aversion on the rise as global bond yields continue to fall

May 29, 2019

Asian indices finished lower today as the China-U.S. trade dispute continues and a Chinese official hinted yesterday that Beijing could use its strength in rare earth minerals as leverage in its trade dispute with the United States. A rally in US 10-year treasuries saw yields slump to multi-year lows resulting in the inversion of the yield curve for the second time this year. It’s a repeat of the warning shot first fired in March this year.

European Market Saw Mixed Activity amid Upbeat EU GDP & German Macro Data

May 1, 2019

Equities across major global markets are set for yet another day of bearish declines. Despite positive cues from US Wall Street’s activity overnight, disappointing Chinese PMI updates influenced bearish investor sentiment in Asian market resulting in major benchmark indices and equities trading and closing in red today. Meanwhile, European markets also saw a dovish opening on cues from the Asian market and decline in bank sector shares awaiting macro data updates for short term directional trading cues.

Post Holiday Market Is Seeing Mixed Activity in European Markets

April 24, 2019

Asian and European markets are seeing major benchmark indices, equities, and forex pairs fight to get rid of bearish influence as usual trading activity resumes post-Easter holidays. Profit booking activity ahead of Easter holidays had left most major assets drained of their gains as the trading session closed last week.

ECB on the Spotlight, USDCAD Breaks Higher

March 7, 2019

Asian indices finished mostly lower today following a downbeat session in Wall Street. With trade negotiations frontier quiet, traders will turn their attention to Europe and focus on the monthly decision on interest rates by the European Central Bank and data on quarterly economic growth. Stock traders will also be following news that Chinese tech company Huawei has filed a lawsuit against the US government over the ban that restricts Fed agencies from using its products.

US-China Trade Talks Improve Risk Appetite

January 9, 2019

President Trump tweeted overnight that “talks with China are going very well” while the meetings were extended for a third day in Beijing, gave Asian stocks a boost to three week high. This combined with no surprises in President Trump’s Oval Office address earlier in the day seemed to help push equities higher in the Asian session.