Epstein Secrets

iscal cliff negotiations. • Commodities — A further set of better Chinese economic data keeps us long base metals. • Equity markets are taking the Obama victory quite badly. with US stocks down some 4% on Wednesday and Thursday. This has pushed up global bond markets, and credit spreads are wider, b

in the slipstream of the tumbling equity market. President Obama's re-election perhaps also diminishes expectation

g ahead of the fiscal cliff, and lower USD/CNY forwards due to avoidance of US-China trade conflict (sec An FX guide to America's toss-up election. FX Markets Weekly, Nov 2). The only surprise has been that FX volatility remains so subdued (VXY unchanged at 7.4%) in a week when the trade-weighted dollar and equi

the fiscal cliff negotiations. Commodities — A further set of better Chinese economic data keeps us long base metals. Equity markets are taking the Obama victory quite badly, with US stocks down some 4% on Wednesday and Thursday. This has pushed up global bond markets, and credit spreads are wider, but

in the slipstream of the tumbling equity market. President Obama’s re-election perhaps also diminishes expectation

ing ahead of the fiscal cliff, and lower USD/CNY forwards due to avoidance of US-China trade conflict (see An FX guide to America’s toss-up election, FX Markets Weekly, Nov 2). The only surprise has been that FX volatility remains so subdued (VXY unchanged at 7.4%) in a week when the trade-weighted dollar and equity

st. Click here for the full Note and disclaimers. Asset allocation - The growth gap between East and West is widening, and has allowed us to join the Obama Pivot towards Asia. We stay long Japan and EM Asia in equities on stronger signs of an economic rebound in the East, while we again cut growth number

e vols are up this year - and the one with broader consequences for neighbors (through EM Asian intervention policy). Hence, this week's focus in our FX Markets Weekly on two other dimensions of the bearish yen view: what is the currency worth if the BoJ successfully delivers 2% inflation, and how broad is the yen s