The attention of investors shifted from the Middle East to Japan late last week, as the natural devastation caused by a massive earthquake trumped the manmade chaos that has been playing out in Libya, Saudi Arabia, and elsewhere in the oil-rich region. With rescue efforts intensifying in the north of Japan after a magnitude 8.9 quake and resulting tsunami, a potential nuclear crisis has emerged as another threat that could impact the entire country. The death toll had climbed to nearly 1,600 on Sunday, but by some estimates that figure will reach as high as 10,000 as rescue efforts continue. [click to continue…]
Equities got off to a quiet start on Monday, with major domestic indexes trading flat for the most part, save for the energy sector which managed to surge higher on the day. Wal-Mart shares traded over 1% lower on the session after JP Morgan cut its rating on the retail giant. Analysts are citing the [...]
Global markets got off to a quiet start on Monday, as equities struggled to move much in either direction to start the week. This flat session came as the dollar appreciating slightly as European debt fears persisted while tensions in Korea pushed investors back into the beaten down yellow metal, sending gold prices marginally higher [...]
As the American economy continues to grow at a painfully slow pace, investors have begun to lose confidence in the once rock solid greenback. This has pushed many investors into the relative safety of gold and other precious metals, many of which are now breaking through or approaching all-time highs. Even the much maligned euro–despite [...]
One of the most intriguing storylines of the third quarter was Japan’s ongoing battle with its own stubbornly strong currency. Despite the current administration’s efforts to hold down the yen, its appeal as a safe haven caused a steady and material increase relative to most major rivals. With the Japanese economy still struggling to get [...]
With the spotlight on Europe and the U.S. all year, most of the world has paid little attention to developed economies in the Pacific region. But for nearly all of 2010, the Japanese yen has been surging against the greenback, with the yen ETF, FXY, gaining over 10% this year. This movement has left many [...]
As the Japanese economy has continued to sputter in recent months, frustration has gradually built over the stubborn strength of the yen. Still perceived as a safe haven, the Japanese currency has been gaining ground against virtually all of its major rivals as a wave of risk aversion washed over global markets. That has been [...]
For many in the U.S., a strong currency sounds like a nice problem to have. A firm greenback effectively reduces the cost of flat-screen TV’s from Asia and makes overseas vacations a little more affordable. In reality, however, currency strength can be an significant obstacle to economic growth, especially for export-dependent economies. No one knows [...]
As investors have grown uneasy over the prospects for global growth and the odds of a double dip recession have seemingly shortened, many safe haven investments have seen sudden uptick in interest. Investors have been snapping up Treasuries and other investment grade bonds as risk appetite has waned, looking to protect themselves against future volatility [...]
Currency markets have been in focus throughout 2010, first as extreme weakness in much of Europe has helped to send the euro sharply lower against most major currencies. More recently, the U.S. dollar has been the subject of much debate as weak job growth and sagging consumer confidence has led many to believe that the [...]
With ongoing weakness in Europe pushing the euro to double digit losses against major rival currencies this year, many investors have sought out safe havens such as the U.S. dollar to ride out the storm. The presence of general economic uncertainty has sent the greenback sharply higher against virtually every major currency year-to-date. However, a [...]
