New Overnight Developments Abroad - Daily Update

Worries about China Rattle Global Equities Again as a New Month Begins

September 1, 2015

A series of bad Chinese purchasing manager survey results were reported on Tuesday. The private Caixin composite PMI (formerly compiled by HSBC) slumped 1.4 points to a 78-month low of 48.8 in August amid weak demand. The Caixin manufacturing PMI of 47.3 was down from 47.8 in July to a 77-month low of 47.3 in […] Read Article

Foreign Exchange Insights and Next Week

Next Week

August 28, 2015

Central Banks:  Interest rate policy meetings are planned next week in Brazil, the eurozone, Poland, Australia, Sri Lanka and Sweden.  The Fed Beige Book of regional economic conditions will be published.  The Jackson Hole central bank symposium wraps up Saturday with a speech from Stanley Fisher, the Fed Vice Chairman and mentor to a who’s […] Read Article

Central Bank Watch

Reserve Bank of Australia

September 1, 2015

This month’s central bank Board meeting and statement again judged Australia’s record low 2.0% Official Cash Rate to be appropriately accommodative.  Cuts of 25 basis points were decided in February and May of this year.  Earlier reductions in May 2012, June 2012, October 2012, December 2012, May 2013 and August 2013 were also 25 basis […] Read Article

Deeper Analysis

Manufacturing PMI Spread Between U.S. and Eurozone Swings to Minus 1.2

September 1, 2015

The U.S. factory purchasing managers index reported by the Institute of Supply Management fell 1.6 points to a 27-month low of 51.1, whereas Euroland’s counterpart, compiled by Markit Economics, dipped just 0.1 points.  The resulting spread between the two series, -1.2, was most disadvantageous to the United States since very early in 2014.  It seems […] Read Article

New Overnight Developments Abroad - Daily Update

Worries about China Rattle Global Equities Again as a New Month Begins

September 1, 2015

A series of bad Chinese purchasing manager survey results were reported on Tuesday. The private Caixin composite PMI (formerly compiled by HSBC) slumped 1.4 points to a 78-month low of 48.8 in August amid weak demand. The Caixin manufacturing PMI of 47.3 was down from 47.8 in July to a 77-month low of 47.3 in […] More

New Overnight Developments Abroad - Daily Update

Lots of Data to Process

August 28, 2015

The last Friday of August brought forth an exhausting ton of released data:  Japanese consumer prices, retail sales, household spending and income, and unemployment; also eurozone sentiment, German consumer prices, French producer prices, Italian wages, consumer confidence and business sentiment, Spanish CPI and retail sales, Swedish GDP, Greek GDP, Swiss GDP, Brazilian GDP, Polish GDP, […] More

Uncategorized

Better Financial Market Tone Continues

August 27, 2015

The Kansas City Fed’s annual economic policy symposium in Jackson Hole, WY begins today.  The topic of this year’s central banker conference is “Inflation Dynamics and Monetary Policy.”  While Chairperson Yellen will not be attending, Vice Chair Stanley Fisher’s speech on Saturday, the final day of the gathering, is the most eagerly awaited event.  Remarks […] More

New Overnight Developments Abroad - Daily Update

Dollar Buoyed by Strong U.S. Durable Goods Orders

August 26, 2015

U.S. durable goods orders, which had been projected flat or slightly lower, instead rose 2.0% in July on top of a 4.1% June advance.  Demand for non-defense, non-aircraft durables climbed 2.2% last month after a 1.4% increase in June.  A separate report revealed a 0.2% uptick last week in U.S. mortgage applications but a 3-basis […] More

Central Bank Watch

Hungarian Central Bank Base Rate Kept at Record Low 1.35%

August 25, 2015

The statement released after the latest Monetary Council meeting implies that Hungary’s central bank base rate is unlikely to get changed, up or down, for an extended period.  Extensive easing began in August 2012 from a 7.0% level.  The base rate was lowered at every meeting through July 2014, at which point such stood at […] More

Central Bank Watch

Another Loosening of Chinese Monetary Policy

August 25, 2015

Officials at the People’s Bank of China cut the one-year lending and deposit rates by 25 basis points to 4.85% and 1.75%, respectively, and the targeted reserve requirement to 18.0% from 18.5% today.  The announcement was made after Chinese equities fell another 7.6% today to their lowest level since December and just two weeks following […] More

New Overnight Developments Abroad - Daily Update

Chinese Central Bank to the Rescue — Really No Big Deal

August 25, 2015

The People’s Bank of China reduced its one-year lending and deposit rates by 25 basis points each to 4.60% and 1.75% while also slicing its reserve requirement ratio to 18.0% from 18.5%.  Stock markets rebounded on the news. Near 10:30 EDT, key U.S. stock market indices were up by 2.5-3%. In Europe, share prices gained […] More

Central Bank Watch

Bank of Israel Releases More Dovish Statement While Leaving Key Interest Rates at 0.10%

August 24, 2015

From a 3.25% level, Israel’s current 0.10% interest rate was reached a half year ago after a 15-basis point cut, and reductions totaling 75 basis points per year in each of four consecutive years spanning 2011 to 2014.  The statement released after this month’s meeting of BOI policymakers is more dovish than July’s in the […] More

New Overnight Developments Abroad - Daily Update

Sell-Off Intensifies

August 24, 2015

A sell-everything mood pervades stocks.  At 15,636 shortly after the open, the DJIA was down 5.0% on the day and 14.8% from its all-time high of 18,351 last May 19.  This was the first correction (a drop of at least 10%) since 2012 and just 5.2 percentage points shy of a bear market (20% or […] More

Deeper Analysis

What’s Going On?

August 21, 2015

In this week of market upheaval, the most consistent theme is reversal.  The dollar, which early in the year inspired great optimism, is fading.  Share prices are correcting sharply downward around the world.  Many Fed officials are itching to raise interest rates, even as oil sinks below $40/barrel for the first time since 2009.  Many […] More

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