| Foreign exchange ideas | | Emerging markets were not immune to the end of the dolce vita in Italian politics and the subsequent rise in volatility across asset classes. | | Baht leads weekly advance | | SINGAPORE — Asian currencies gained last week, led by Indonesia’s rupiah and the Thai baht, on optimism the region’s economies are improving. | | Equities face roadblocks | | NEW YORK — If Wall Street needs to climb a wall of worry, it will have plenty of opportunity this week. | | Global markets and the risk angst | | Beppe grillo and the US sequester ($85 billion in indiscriminate federal budget cuts or a 0.6 per cent hit to growth, as calculated by CBO economists) are not exactly the sort of event risk an ageing bull market 3.5 per cent above its 50-day moving average needs. | | The euro target of 1.30 gets nearer! | | My consistent bearishness on the euro in the past month has been vindicated as it has now fallen below resistance levels below 1.3200, down from its earlier high of 1.37. | | Emerging markets shares, local debt | | Emerging markets equities did not remain immune to the mini-meltdown on Wall Street last week. Chinese banks, the lodestar of Shanghai’s frenzied bull run since November, have led Asian equities lower, hardly an auspicious omen for the beta trade. | | Dollar up as Fed may vary bond purchases | | NEW YORK — The dollar gained versus the majority of its 16 most-traded peers after minutes from the Federal Reserve’s last meeting showed several officials favored varying the pace of bond purchases, which debase the currency. | |
