Eamonn Sheridan

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Central Banks
usdcny 04 December 2025 2
Central Banks

Yuan nears 7 as US–China thaw lifts sentiment, but PBOC slows pace of appreciation

  • The yuan’s grind toward 7.0 reflects improving geopolitical sentiment and renewed inflows, but Beijing’s managed approach should temper volatility. A controlled appreciation favours stability in Chinese assets while limiting the risk of heavy corporate dollar liquidation or sudden shifts in export competitiveness.
Commodities
oil
Commodities

Chevron sets $18–19bn 2026 capex, prioritising US shale and Guyana offshore growth

  • Chevron’s low-range capex signals continued capital discipline even as upstream growth accelerates. The tilt toward US shale and Guyana should support production guidance and cash-flow visibility, while offshore commitments highlight long-cycle confidence. Marginally lower downstream spending reinforces a strategic shift toward higher-return barrels.
Central Banks
Trump Trade Tariffs
Central Banks

Wall Street cautions Trump, Hassett pick seen risking Fed credibility, raising long yields

  • A Hassett appointment may embed a risk premium into long-dated Treasuries as investors price greater policy uncertainty and potential political interference. Mortgage and consumer-credit markets could tighten, while Fed-policy expectations may become more volatile.
Stock market update
M&A 04 December 2025
Stock market update

Morgan Stanley sees strong 2026 M&A and IPO wave, expects more bank consolidation

  • The outlook reinforces expectations for a stronger global deal cycle in 2026, supporting investment-banking revenues and potentially lifting financial-sector equities. Increased bank-sector consolidation may trigger re-rating opportunities, while more selective AI financing could temper valuations at the speculative end of the tech complex.
Central Banks
Federal Reserve FOMC building
Central Banks

JPMorgan: labour slump warrants near-term Fed cuts, but sticky inflation limits easing

  • The note supports front-loaded Fed-cut pricing but cautions against extending the easing cycle through 2026. Rates traders may trim longer-run dovish bets, while USD bears face a stickier-inflation brake on deeper downside.
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