Strong China demand boosts gold rally
Source: Bloomberg and Sprott Asset Management LP. Data as of January 31, 2023.
January was a solid month for risk assets as investment funds were underexposed for a positive, right-tail8 outcome. The significant left-tail risks of 2022 quickly faded or reversed as we headed toward the new year. In the U.S., fears of hyperinflation and additional Federal Reserve rate hikes ended abruptly as the Fed signaled it would slow its rate hikes just as inflation data finally moderated.
The Bloomberg US Government Securities Liquidity Index surpassed the crisis levels of March 2020, the last time the Fed was forced to intervene to restore market functioning with interest rate cuts, liquidity injections, swap facilities, etc. Generally, a strong USD reduces systematic market liquidity, and Figure 3 highlights this relationship. The U.S. Treasury Market is the world's largest and most liquid market.
In December 2022, in a surprise move, the BoJ lifted the YCC cap to 0.50% from 0.25%, signaling to the market that the BoJ YCC had likely reached its best-before date. Since then, the yen has strengthened by ~15%, contributing to USD weakness. Capping JGB yields in the second half of 2022 as global yields soared required massive purchases of JGBs via quantitative easing. This 2H 2022 QE event was a monetary stimulus of 76 trillion yen or $550 billion .
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Heavy rain, strong winds in store for Toronto on Thursday, weather agency says | CBC NewsStrong winds and heavy rain are possible for Toronto on Thursday after a warm up that saw temperatures swing from the negative double digits to spring-like plusses.
Read more »
China's military interest in high-altitude balloons is growing, documents reveal | CBC NewsChina's Foreign Ministry has repeatedly described the balloon the drifted over the U.S. as an errant scientific craft, but Chinese military researchers have recently argued in publicly available papers that such aircraft should be further developed and deployed in specific missions.
Read more »
Environment Canada warns of heavy rain, possible freezing rain and strong winds in Durham ThursdayDurham is under a special weather statement. Environment Canada is warning of freezing rain in northern Durham Thursday morning, most likely in areas over hi
Read more »
Uber beats estimates on strong demand for takeout, rides - BNN BloombergUber Technologies reported revenue that beat analysts' estimates, suggesting rising inflation hasn't kept consumers from ordering more takeout or hailing a ride.
Read more »
MH17 inquiry: 'Strong indications' Putin OK'd missile supplyAn international team of investigators said Wednesday it found 'strong indications' that Russian President Vladimir Putin approved the supply of heavy anti-aircraft weapons to Ukrainian separatists who shot down Malaysia Airlines flight MH17 in 2014 with a Russian missile.
Read more »
FTX plans to claw back millions in contributions to politicians and charities(Kitco News) - FTX is no longer asking nicely that political and charitable contributions made by the previous management be returned, according to a press release issued on Feb. 5.
Read more »