Asks what the key catalyst for the Asian session is, given the volatility in precious metals and other news.
Sherry
Mark Matthews
The precious metals fallout is the key thing to watch. Such enormous swings in gold and silver will have more fallout, spilling over into various markets like the Canadian stock market.
Asks which trade will be most vulnerable after the hot money has come out of the carry trade.
Avril
Mark Matthews
The precious metals themselves are a big risk, but the larger issue is the continued decline of the dollar.
Mark Matthews
We view this big sell-off in precious metals as a buying opportunity. The leveraged players got flushed out on Friday.
Asks if the speed and size of currency and metals moves are a concern.
Avril
Mark Matthews
Doesn't think so; expects a controlled change. The Chinese want renminbi appreciation to be very gradual, and it's the primary cue for EM currencies.
Asks about his positive view on Chinese stocks and if Xi's call for a strong renminbi feeds into that.
Avril
Mark Matthews
A stronger renminbi would be a sign something is going right in China. The big story is China emerging as a technology hub and powerhouse.
Asks if there's a rethink on AI and US tech spending, given flows into China and Nasdaq futures moves.
Avril
Mark Matthews
We are the least optimistic on US tech stocks (Magnificent 7) in a decade. A rotation is occurring out of them into emerging markets and hard assets like metals.
Asks about implications of the Japanese election and confusion over yen policy for markets.
Sherry
Mark Matthews
The 10-year JGB yield says rates are going up in Japan, which should mean a stronger yen. Focus on Japanese companies with high returns on equity, not broad economic growth.