Global Forex and Fixed Income Roundup: Market Talk

Dow Jones12-20 15:22

The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0722 GMT - Gross government bond issuance by eurozone sovereigns via syndications in January 2025 will be heavy historically, but less so than in January 2024, Barclays's strategists forecast. They expect 55 billion euros to be issued via syndicated transactions in January and 102 billion euros in the first quarter. That would compare with 84 billion euros issued in syndicated deals in January 2024 and 122 billion euros in 1Q, they say in a note. "Ultimately, 2024 has proved to be somewhat exceptional in terms of the extent to which issuers front-loaded supply," they say. This reflected the particularly attractive market conditions for issuers at the start of the year, they say. Syndicated issuance comes beside scheduled bond auctions in the eurozone. (emese.bartha@wsj.com)

0657 GMT - South Korea's benchmark Kospi fell 1.3% to close at 2404.15, dragged by semiconductor, battery and steel stocks. The index lost 3.6% for the week. Foreign and institutional investors remained net sellers in the session. The won's weakness against the U.S. dollar sapped investors' appetite for local equities. USD/KRW settled at 1,451.40 in Seoul onshore trading, virtually flat from the 15-year closing high of 1,451.90 at the prior session. EV-battery maker LG Energy Solution fell 3.9%. Memory-chip maker SK Hynix dropped 3.7%. Steelmaker Hyundai Steel lost 3.9%. South Korea's 10-year government bond yield was up 4.1 basis points at 2.855%. (kwanwoo.jun@wsj.com)

0527 GMT - USD is likely to perform well in the year ahead, HSBC analysts say in a research report. The first Trump presidency may have seen USD weakness in its first year, but we don't expect a repeat performance under Trump 2.0, the analysts say. That's due to relatively higher U.S. yields and a divergence in the global growth cycle, among other factors. Meanwhile, the outlook is poised to be challenging for currencies whose economies are highly linked to the U.S. via trade, or reliant on the global trade cycle, HSBC says. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

December 20, 2024 02:22 ET (07:22 GMT)

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Global Forex and Fixed Income Roundup: Market Talk

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