From Marc to Market:
The US dollar is firmer but largely
confined to the ranges seen before the weekend against most of the major
currencies. The yen is also firmer as dollar sellers reemerged
near JPY114.00. The dollar is gaining against most emerging
market currencies, though Asian currencies, notably
the Korean Won, are firmer.
Although emerging market currencies and
commodities are heavier, global equities are continuing their advance since
bottoming February 11-12. Even disappointing industrial output
and retail sales figures from China over the weekend did not hold back Chinese
shares. The Shanghai Composite rose 1.75% to bring the month-to-date gain
to 6.4%. The MSCI Asia-Pacific index rose 1.25% to reach its
best level since January 6.
European markets are higher as well. The DAX is straddling the
10,000 level for the first time since the middle
of January. The three German state elections saw the
anti-EU/anti-immigrant AfD surpass the threshold to serve in local
parliaments. However, the lead party in state coalition was returned,
suggested that the Bundesrat, the upper chamber of parliament where the states are represented, will not change.
The Dow Jones Stoxx 600 is up about 0.65%, led by materials and
information technology. Profit-taking appears to be weighing on
the energy sector and utilities. European bond markets are also
firm. Benchmark 10-year yields are off 2-4
bp. Fitch took away Finland's AAA rating before the weekend
to AA+, matching S&P, leaving only Moody's, of the big three rating
agencies with the highest rating. Finnish bonds seem unperturbed
and are among participating fully in today's advance....
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