Markets in 3 Minutes

And Paul, it's usual when we speak to you, given where you are positioned in the world, we talk mostly about things that are happening in the Asian market as well. Today, the thing that was happening in the Asian markets was that the euro was selling off substantially. What did you make of that? Quite decisive action on the euro. Yeah. Good morning Anna. Absolutely. That was what was catching our attention in the Asian traders attention as well this morning. Um, quite a big lag. Lower in the euro. Unusually large move on volume for our time of day. Um, and taking out, you know, last week's lows, uh, and there was a little moment where it really looked like the losses were accelerating. I think we got down to about 0.8 percent on Eurodollar lower on the day. Um, you know, the market is, is is factoring in a bunch of different things here. The political risk in Europe, obviously, is one thing. The possibility that the ECB, uh, pivots, um, doesn't hike quite so aggressively or maybe even, uh, takes more, uh, firm action in order to contain the bonds market, perhaps, um, slowing the pace of Kutty perhaps using its, transmission protection instrument, although that seems less likely. But if the ECB would slow interest rate hikes, that would bring down those shorter term, uh, bond yields. And that's what we're seeing in the market today. There's also that concern that the Japanese investors, which hold a large amount of French government bonds, are starting to liquidate more of their holdings again. That would be something that would add to pressure on the euro. So, uh, quite a cacophony of risk for us in the euro area to start our day. Yeah. Paul, has the actions switched from the bond market to the channel? Is that what we're witnessing here at the bond markets calm with this morning that it appears to be that much calmer, but maybe a little calmer. Maybe a little bit calmer guy. I think the, um, there is that possibility of lower ECB rates, and that would mean people have to take it out more on the euro. But also, you know, the euro is the thing that you can trade this liquid at those that was rather than the bond market. So it's possible that this more follow through as we get through the day. Um, or, you know, some of the settlement going on from recent trading as well. I think the, you know, as you've been discussing, one of the keys to watch out for is more contagion to the rest of the Euro Euro area. We did see that, um, last week, a little bit in some of the Belgium bonds, in Greek bonds, even in Italian bonds. And, you know, the idea that it becomes more unruly like that is something that people will be particularly wary of. Paul, I know you've got your eye on on the results out of Brazil as well. How you factor that in. What are you hearing about market reaction to that? Yeah, it's um, everywhere, everywhere but Asia today. So, uh, Brazil's, uh, election results were taken by the market as a clear positive for Brazilian assets. Um, the fact that Bolsonaro, uh, was, was in the lead, um, uh, beating expectations, um, and his, his sort of right wing positioning, which is more seen, seen as more market friendly, um, was was taken as an immediate sort of uh, plus for financial markets. We saw that expressed a little bit in currency futures trade in America would like the the real currency market doesn't open until later in the day, but also an ETF for Japanese stocks. Um, so you have Brazilian stocks traded in Japan had a gain of 13%. So that tells you the markets are focused there.