Our analysts have their fingers on the pulse of the world's financial market news.
Strong HSBC earnings and a carry-over from Wall Street closing higher on Friday is feeding through to a positive start for European equities. Shares of HSBC are expected to open higher after Europe’s biggest bank posted a rise in profits in the second quarter. On Wall Street, a modest slowdown in job growth during July wasn’t enough to spoil the mood for equity investors. After confidence in tech shares was dented by Facebook earnings, Apple reaching a market cap of $1trillion has carried extra weight.
In forex markets, action by the People’s Bank of China has proven effective at pausing sharp declines in the offshore yuan. The offshore yuan continued to move higher against the dollar in early Monday trading as traders brace for the new higher margin requirements on
Outside of China, currencies are still digesting the latest NFP data. The dollar had initially dropped as job growth missed expectations, but quickly reversed. Momentum still favours a stronger dollar. The dovish hike from the Bank of England and the widening of the 10-year yield target by the Bank of Japan demonstrate the very slow return to normal monetary policy from global central banks. The others have started to play catch-up to the Fed, but it is still way out in front.