Weakness in Asian shares
October 4, 2021
–Kospi at a new low since March, down 1.6%. Nikkei down 2.5% having completely erased the early September rally which had eked out a new high for the year. ESZ had been positive Sunday evening, but is now lower on the day, perhaps on continuing Evergrande issues. China’s incursions into Taiwan airspace may be another factor for weakness in Asian shares. Hang Seng is down 2.1% but not quite through recent lows made in September.
–Friday featured a solid rally in US rate futures. Tens fell 6.2 bps to 1.462%. Thirties were down 5.2 bps and are still above 2% at 2.036%. This morning yields have rebounded a couple of bps. News today includes Durables and Factory Orders, though it may be that shortages are impacting these figures.
–Jim Bianco noted that betting odds for Powell to be re-confirmed as Fed Chair had fallen since disclosure of Clarida’s covid trades. This morning on PredictIt, Powell is at 64 cents, Brainard at 26% and Roger Ferguson is at 7 cents.
https://www.predictit.org/markets/detail/7398/Whom-will-the-Senate-next-confirm-as-Chair-of-the-Federal-Reserve
–Bullard takes part in a panel discussion of the economy. From TheHill: “…Schumer on Sunday said he hopes to pass the bipartisan infrastructure bill and a reconciliation package in the next month…”
