New Overnight Developments Abroad - Daily Update

Firmer Tone Wednesday in Equities and the Dollar

September 23, 2020

European share prices so far today show gains of 2.1% in the U.K., 1.6% in Spain, 1.5% in France, 1.4% in Germany and 1.1% in Italy. Equities also rebounded 2.4% in Australia, 1.1% in New Zealand, and 0.7% in Singapore but dipped 0.1% in Japan whose market was closed Monday and Tuesday for holidays. U.S. […] Read Article

Foreign Exchange Insights and Next Week

Next Week’s Menu: September 19-25, 2020

September 18, 2020

Central Banks: Monetary policies to be reviewed in Sweden, Switzerland, Norway, China, Thailand, New Zealand, Hungary, Turkey, Mexico, Colombia, and the Czech Republic. BOJ minutes will be published. Cleveland Fed President Mester, Deputy Governor DeBelle of the Reserve Bank of Australia, and Bank of England Governor Bailey speak publicly. Holidays and Events: Japan’s Respect for […] Read Article

Central Bank Watch

Swedish 7-Day Repo Rate Held at 0.00%

September 22, 2020

A statement released by the Swedish Riksbank after officials voted to leave the 7-day repo rate unchanged at zero percent proclaimed, “The Swedish economy has now begun to recover after having fallen sharply in the spring. But the way back is long and fraught with uncertainty. To provide support to economic developments and help inflation […] Read Article

Deeper Analysis

U.S. Stock Market of Trump Compared to Earlier Presidencies

September 21, 2020

The favorable impression of the stock market performance during President Trump’s first term reflects in large part two factors: the very low unemployment level until just before the pandemic began and the appreciation of U.S. equity prices. The performance of the Dow Jones Industrials duringĀ  Donald Trump’s stewardship, however, has not been nearly as stellar […] Read Article

New Overnight Developments Abroad - Daily Update

Rising Covid Cases, Growth Outlook Concerns, Supreme Court Nomination Fight, and U.S.-China Tensions

September 22, 2020

The pace of new Covid-19 cases has risen in many countries. A U.S. increase above 40k in the past 24 hours is well above a safe level heading into the flu season. Fed Chairman Powell said America has a long way to go in its economic recovery from spring lockdowns and that a full comeback […] More

New Overnight Developments Abroad - Daily Update

Broad Decline in Equities and Strengthening Moves in the Yen and Dollar

September 21, 2020

Japanese markets were closed today for Respect for the Aged Day and will remain so Tuesday for the Autumnal Equinox holiday. Elsewhere in the Pacific Rim, stock markets have dropped 2.3% in India, 2.1% in Hong Kong, 1.2% in Indonesia, and 0.7% in Australia and New Zealand. Selling intensified in Europe, where equities so far […] More

New Overnight Developments Abroad - Daily Update

Mixed Signals this Friday

September 18, 2020

China’s Shanghai Composite equity index jumped 2.1%, but share prices fell 1.4% in New Zealand and 0.3% in Australia and India. Japan’s Nikkei rose only 0.2%, and Spanish stocks have so far dropped 1.2% on the day. The dollar climbed to another record high against the Turkish lira and shows a year-to-date advance of more […] More

New Overnight Developments Abroad - Daily Update

Equities Fall Even as Central Banks Commit to Maintaining Low Interest Rates

September 17, 2020

Share prices in Asia closed down 1.6% in Hong Kong, 1.2% in South Korea, 0.8% in Taiwan and India, 0.7% in Japan and 0.4% in China and Indonesia. Equities in Europe so far today have dropped 1.2% in Italy, 0.9% in France, 0.8% in Germany and Spain, and 0.5% in the U.K.. The dollar recovered […] More

Central Bank Watch

Comments on Fed Chairman Powell’s Press Conference

September 16, 2020

The fact that two dissents were cast against the forward guidance did not get raised in Q&A until late in the press conference and elicited an unconcerned response from the chairman, who observed 1) that the dissents represented opposite sides of the policy spectrum, 2) that all committee members were in favor of a restructured […] More

Deeper Analysis

FOMC Statement and Updated Forecasts

September 16, 2020

I had two quick takeaways from today’s FOMC statement. First, Under the modified FOMC framework for treating its twin policy mandates, forward guidance is expressed in an enlarged paragraph: The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With inflation running persistently below this longerrun […] More

Central Bank Watch

FOMC Preview

September 16, 2020

This week’s review of Fed policy is not expected change its settings for interest rates or unconventional stimulus such as asset purchases. This was the last scheduled meeting before the November election. To avoid appearing partisan, the central bank avoids, if at all possible, policy changes this close to a presidential election but as in […] More

New Overnight Developments Abroad - Daily Update

And the Dollar Downbeat Goes On

September 16, 2020

FOMC Day in America finds the dollar struggling to tread water. The U.S. currency slipped further to a 16-month low against the Chinese yuan and a 7-week low relative to the yen and is hovering near a 5-year low against the Swiss franc and a 2-1/2 year low against the euro. Overnight losses in the […] More

New Overnight Developments Abroad - Daily Update

Further Erosion of Dollar’s Value

September 15, 2020

The dollar dropped 0.6% to a 16-month low against the Chinese yuan overnight and also lost 0.5% relative to the Australian dollar, 0.4% vis-a-vis the Mexican peso, 0.3% versus the kiwi, Swiss franc, loonie, euro and sterling, as well as 0.1% against Japan’s yen. The latest declines bring the dollar’s trade-weighted depreciation over the past […] More

New Overnight Developments Abroad - Daily Update

Stocks Mixed,Dollar and Oil Price Down at Start of September’s Third Week

September 14, 2020

Equities advanced in the Pacific Rim, slid marginally in Europe, and appear poised to open higher in the United States. The dollar fell overnight by 0.7% against sterling, 0.5% versus the kiwi, 0.3% relative to the peso, euro, and Swiss franc, 0.2% vis-a-vis the yuan and 0.1% against the yen and loonie. The price of […] More

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