• Meanwhile in markets, it’s a snooze fest as US and UK markets are both closed today for holidays. And without the US Treasury and rates markets shining a light in the darkness, there is much less to do for us scribblers. But we will give it a try regardless.
  • Asian equities are starting the week with modest losses ranging from 0.2% for Shanghai to 1.2% for the Nikkei. Despite Asia now suffering a wave of the virus, the markets that we track (Shanghai, Sydney, Tokyo, Hong Kong) are up for the month. The MSCI EM should close the month with a 2% or so gain, but the YTD gains pale in comparison to what we’re seeing in the US and Europe.
  • In FX the dollar keeps hanging on by a thread. The currency basket that we track, the dollar index and the JPMorgan EM FX index, are at their lowest/highest levels in years, respectively. So, the dollar remains weak. But in recent weeks we haven’t seen further weakness. One of the biggest beneficiaries of dollar weakness remains CNY/CNH. The yuan is at its highest level in years against both the greenback and against the PBOC’s basket of currencies. That might have something to do with Beijing’s latest clampdown on financial excesses, which we will discuss further down below.



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