By March 25, 2018, 5:47 PM EDT The rout that sent global markets into a tailspin last week showed no signs of easing on Monday morning, with stock futures in Asia signaling further declines amid concern that global growth may be destabilized by protectionist policies resulting from the U.S.Global stocks put in their worst week since the rout in early February and erased all of that subsequent recovery, with losses deepening into the close of Friday trading in the U.S. Crude posted its biggest weekly gain since July and the yen rose to the strongest in more than 16 months against the dollar.Treasury Secretary Steven Mnuchin told Fox News that he’s “cautiously hopeful” the two nations will reach a deal to avoid the tariffs U.S. President Donald Trump ordered on $50 billion of imports. Part of the problem for traders is assessing how the tariffs will be implemented, particularly after Trump exempted a handful of key partners from proposed steel and aluminum … [Read more...] about Asia Stocks Signal More Losses Amid Trade Tensions: Markets Wrap
It’s taken a quarter of a century, but China’s finally getting its own oil futures.At 9 a.m. local time on Monday, crude contracts will begin trading on the Shanghai International Energy Exchange. The world’s biggest oil buyer is offering yuan-denominated futures that foreigners can buy and sell -- a first in Chinese commodities. Among the most intriguing questions is whether the traditional benchmarks of Brent crude in London and West Texas Intermediate in New York will face a serious challenger. Here are some of the other key questions.1. Why is this important for China?Futures trading would wrest some control over pricing from the main international benchmarks, which are based on dollars. Denominating oil contracts in yuan would promote the use of China’s currency in global trade, one of the country’s key long-term goals. And China would benefit from having a benchmark that reflects the grades of oil that are mostly consumed by local refineries and … [Read more...] about China Is About to Shake Up the Oil Futures Market
Author: ECB. The following press release was issued by the ECB on January 31, 2017 00:00. Speech by Yves Mersch, Member of the Executive Board of the ECB, at the Joint ECB and European Commission Conference “Into the future: Europe’s digital integrated market”,Frankfurt am Main, 31 January 2017 Introduction For over a decade the European Commission, the Eurosystem and the market have been working towards transforming what has up to now been a very fragmented financial market infrastructure in Europe into a more integrated one. This work is still ongoing and requires more effort. However, we are at a point now when progress has become tangible. In the first part of my speech, I will briefly take stock of where we stand, particularly with regard to the post-trade area. I will then address two areas where I still see gaps that are in the way of our achieving a truly integrated European financial market. The first area is securities issuance, the second instant payment … [Read more...] about Speech Yves Mersch: Digital transformation: Europe’s integrated market of tomorrow
Author: ECB. The following press release was issued by the ECB on January 26, 2017 00:00. Speech by Yves Mersch, Member of the Executive Board of the ECB, at the GFF summit, Luxembourg, 26 January 2017 Introduction There is no doubt that European repo markets today are operating in unprecedented territory. In the past year we have faced the extraordinary situation of collateralised transactions taking place well below the ECB’s deposit rate, and not just for the highest-rated issuers. There are increasing signs that this is indicative of market stress. Though market depth remains relatively stable and the bid offer spreads are not a major liquidity restriction, the decreased average ticket size seems reflective of collateral scarcity in some market segments. If one looks at the distribution of trades taking place by rates towards the end of last year, while German collateral usually traded at around -70 bps, it traded at -4.88% at year-end, reflecting increased demand for … [Read more...] about Speech Yves Mersch: Ructions in the repo market – monetary easing or regulatory squeezing?
Author: ECB. The following press release was issued by the ECB on January 25, 2017 00:00. PRESS RELEASE 25 January 2017 Less favourable credit terms offered to banks and hedge funds Higher initial margin requirements for non-centrally cleared OTC derivatives A decrease in market-making activities for debt securities and derivatives Credit terms offered to counterparties in the provision of finance collateralised by euro-denominated securities and in over-the-counter (OTC) derivatives markets became somewhat less favourable for banks and dealers and for hedge funds, but remained basically unchanged for other counterparty types. Credit terms offered to all types of counterparty are expected to tighten further over the next three-month reference period between December 2016 and February 2017. Regarding the provision of finance collateralised by euro-denominated securities, survey respondents indicated that credit terms such as the maximum amount of funding, the maximum maturity of … [Read more...] about Press release Results of the December 2016 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD)