June 28, 2017
ECB President Draghi said several things yesterday. A remark that the pendulum of price pressure is shifting away from deflation toward reflation had caught the market’s immediate attention and driven the euro higher, but the ECB today clarified that investors had not given sufficient weight to his other observation that plenty of monetary stimulus is […] Read Article
June 28, 2017
Among highly developed countries, the United States and Great Britain are some of the best examples in which the politics of populism has made the greatest inroads. Sterling is roughly 14% weaker now against the dollar than when the Brexit referendum was approved a little over a year ago, but even the pound has appreciated […] Read Article
June 27, 2017
Following last week’s policy review, Sri Lanka’s key central bank deposit and lending rates were again maintained at 7.25% and 8.75%, the levels since a pair of 50-basis point increases implemented last year in February and July. A statement of explanation called the monetary policy stance “appropriate” and predicted that total and core CPI, which […] Read Article
June 5, 2017
The 0.6-point difference in May between the ISM non-manufacturing purchasing managers index (56.9) and the euro zone services PMI compiled by IHS Markit (56.3) was 0.5 points smaller than in April. IHS Markit also measures a U.S. services PMI, and this rose by 0.5 points to 53.6. As was the case with the two economies’ […] Read Article
June 27, 2017
The dollar declined overnight by 0.8% against the euro, 0.7% relative to the Swiss franc, 0.4% versus the yuan, 0.3% relative to the Australian dollar and sterling and 0.2% vis-a-vis the kiwi and loonie. The dollar is unchanged against the Japanese yen and 0.3% firmer relative to the Mexican peso. Today’s main event will be […] More
June 26, 2017
Equities began the final week of the second quarter mostly on a rising note, with gains of 1.3% in Taiwan, 0.9% in China and Hong Kong, 0.6% in New Zealand, 0.4% in South Korea and 0.1% in Japan and Australia. Several markets were shut for the end of Ramadan. Share prices in Europe have advanced […] More
June 23, 2017
Holidays: For post-Ramadan celebrations, Indonesia will be closed all week, and India and Singapore are to be shut on Monday. Friday marks the end of June and second quarter. Central Banks: Monetary policy meetings in the Czech Republic and Sri Lanka. A summary of the Bank of Japan’s Board meeting in mid-June will be published. […] More
June 23, 2017
Mexico’s key central bank interest rate was hiked by an additional 25 basis points to 7.0%, bringing its cumulative rise to four percentage points from 3% prevailing from October 2014 through the early December 2015. However, Bank of Mexico officials suggested in a statement that no more tightening may be necessary. See review. The peso […] More
June 22, 2017
Mexico’s key central bank interest rate was raised for the seventh time since September and the tenth time since December 2015. Over the entire year and a half span, the rate has been lifted from 3.0%, the level between October 2014 and December 2015, to 7.0%. Today’s increase had been expected. CPI inflation of 6.3% […] More
June 22, 2017
The Executive Board at Norges Bank left the key Norwegian policy rate at 0.50% and released a statement that indicates the rate is unlikely to be raised until 2019 and then at only a gradual pace. Inflation has been lower than assumed previously despite higher-than-projected capacity usage. Inflation expectations are firmly anchored. Norway’s central bank […] More
June 22, 2017
The Filipino reverse repo rate is being maintained at 3.0%. A statement released after the latest policy review, which left all other policy settings unchanged as well, projects manageable in-target CPI inflation (2-4%) in 2017-19 but concedes that risk surrounding the forecast is tilted to the upside. Price expectations remain well-anchored, and the outlook for […] More
June 22, 2017
From a high of 3.5% between late July 2014 and mid-June 2015, the RBNZ’s official cash rate was cut in half via seven 25-basis point reductions. The last of these occurred in November 2016 and left the OCR at its current 1.75% level. A statement released following the latest policy review defends continuing an accommodative […] More
June 22, 2017
The U.S. dollar has lost 0.4% against the kiwi, 0.2% versus the peso and loonie and 0.1% relative to the yen but risen 0.2% against the Australian dollar and 0.1% vis-a-vis the euro, Swiss franc and yuan. Although 0.6% higher overnight, WTI crude oil remains very depressed at $42.79 per barrel, 21.4% lower than its […] More
June 21, 2017
With a low of $43.33 per barrel, West Texas Intermediate oil has fallen 20.4% from its February 23 closing high of $54.45. The sliding energy sector weighed especially had on Australian equities, which fell 1.6% today. Stocks also dropped 0.9% in Singapore, 0.8% in New Zealand, and 0.5% in Japan and South Korea. And in […] More
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