Archive for July 27th, 2010

Stress Test Starts a Temporary Move to Risky Assets

Just as the stress test advocates were getting ready to declare Friday’s results a success due to a selloff in USD and rally in equity markets, we then ran right into a summer whipsaw. The broad majority of G10 currencies sharply reversed their brief trends with today’s European open. Yesterday’s wave of risky asset investing lacked any solid drivers, so the momentum was bound to falter….

Asia Propped up Following Strong US Closing

G10 Advancers and Decliners vs USD
GBP 0.18
EUR 0.16
CHF 0.00
JPY -0.16
Risk sentiment was kept propped up during the Asian session this morning, this of course following a strong close to the US equity markets last night. The Dow closed higher, posting a gain of a little more than 100 pts (+0.97%) whilst the S&P was up 1.12% on the session. Markets were boosted earlier in the session by a robust home sales figure which showed purchases increased 24 percent from…