New Overnight Developments Abroad - Daily Update

Volatile Markets

April 25, 2017

In the aftermath of the French election and with the risk of a partial U.S. government shutdown still looming, big market moves continued on Tuesday. Better-than-expected U.S. corporate earnings reports from the likes of Caterpillar are extending the U.S. stock market rally. Equities in Asia closed up 1.4% in Hong Kong, 1.3% in Taiwan, 1.1% […] Read Article

Foreign Exchange Insights and Next Week

Next Week

April 21, 2017

Central Banks: Monetary policy meetings are scheduled in Japan, Euroland, Sweden, Colombia, Russia, Turkey and Hungary. BOJ Governor Kuroda and ECB President Draghi will hold press conferences. The BOJ Board publishes an updated Outlook of Economic Activity and Prices. The governor of the Reserve Bank of Australia and President of the Swiss National Bank also […] Read Article

Central Bank Watch

Central Bank of Hungary

April 25, 2017

At this month’s meeting of Hungary’s Monetary Council, officials left interest rates including the 0.90% Base Rate unchanged as expected. The rate was slashed from 7.0% prior to August 2012 to 2.1% over the ensuing two years, reduced by a further 75 basis points in March-July of 2015 and again by 45 basis points in three […] Read Article

Deeper Analysis

April 5, 2017

The ISM’s non-manufacturing U.S. PMI, shown in the table below, dropped 2.4 points to 55.2 in March, and a U.S. services PMI compiled by Markit Economics declined 1.2 points to a 6-month low of 52.6. In contrast, Euroland’s PMI moved 0.5-point higher to 56.0, which is a 70-month peak. As a result, the U.S. non-manufacturing-minus-Ezone […] Read Article

New Overnight Developments Abroad - Daily Update

Super-Charged Euro and Other Big Market Changes after French Election

April 24, 2017

The centrist candidate, Macron, and not anti-euro Le Pen, won the first round of France’s presidential election on Sunday. Le Pen came in second place with 2.5 percentage points fewer votes than Macron, but initial opinion polls are giving Macron a decisive edge heading into their run-off vote on May 7. In response, the dollar […] More

New Overnight Developments Abroad - Daily Update

Much to Ponder This Friday

April 21, 2017

Many of the themes affecting markets of late had new developments this day. The threat of trade wars is one of them. Preliminary purchasing manager survey results for April reported by Markit Economics reflect the beneficial impact in Europe of the euro’s softer tone. Euroland’s composite, manufacturing, and service-sector indices each climbed to a six-year […] More

Central Bank Watch

No Change in Indonesia Monetary Policy

April 20, 2017

As analysts expected, Bank Indonesia’s seven-day reverse repo rate, the main policy benchmark, was left at 4.75%, the level since a sixth and final 25-basis point reduction made during 2016. This occurred last October and followed similar moves in January, February, May, June, and September. Monetary officials also left their overnight deposit and lending rates […] More

New Overnight Developments Abroad - Daily Update

Softer Dollar and Yen

April 20, 2017

The dollar has rebounded 0.5% against the yen but has traded down 0.5% against the Australian dollar, 0.3% relative to the euro, peso and sterling, and 0.2% vis-a-vis the Swiss franc and kiwi. U.S. share prices opened a bit firmer. Japan’s Nikkei and the Shanghai composite index closed unchanged on Thursday. Stocks climbed 1.0% in […] More

New Overnight Developments Abroad - Daily Update

Geopolitical Risks Persist but Market Risk Aversion Pauses

April 19, 2017

European equities recovered 1.0% in Spain, 1.5% in Italy, 0.5% in Greece, 0.4% in France and 0.3% in Germany. Share prices opened a little  higher in the United States. Earlier, stocks had fallen 1.1% in Taiwan, 0.8% in China, 0.5% in South Korea, 0.6% in Australia but edged 0.1% higher in Japan. The dollar climbed […] More

New Overnight Developments Abroad - Daily Update

Sterling Lifted by Decision to Hold Early British Election

April 18, 2017

British Prime Minister Theresa May will reportedly announce a decision tomorrow to hold a snap parliamentary election on June 8. The previous British election was held in May 2015, and another one isn’t required until May 2020. May, who succeeded the resigning David Cameron last July, had previously been opposed to calling snap elections but […] More

New Overnight Developments Abroad - Daily Update

Important Developments on Easter Monday

April 17, 2017

A slew of markets remained closed including the U.K., Australia, New Zealand, Germany, France, Italy, Spain, Portugal, Belgium, The Netherlands, Greece, Switzerland, Hong Kong, South Africa, Sweden, Denmark, Norway, and Hungary. A Turkish referendum over the weekend has given President Erdogan sweeping additional powers. The lira appreciated initially more than 2.0% in response. North Korea’s […] More

New Overnight Developments Abroad - Daily Update

Bad Vibrations

April 14, 2017

Most markets around the world are closed for Good Friday.  Share prices in those few open markets are lower, with declines of 1.4% in Russia, 0.9% in China, 0.8% in Pakistan, 0.6% in South Korea, 1.1% in Taiwan, and 0.4% in Malaysia, Japan, and Vietnam. Dangerous geopolitics has maintained a sour mood. Russian officials now […] More

Foreign Exchange Insights and Next Week

Next Week

April 13, 2017

A lean holiday-shortened week lies ahead both from a data-release and central bank standpoint. Central Banks: Bank Indonesia holds an interest rate policy meeting on Thursday. Minutes from the last Reserve Bank of Australia meeting get released. So does the Fed Beige Book that examines regional U.S. economic trends. Eric Rosengren has a public speaking […] More

Central Bank Watch

Semi-Annual Review of Singapore’s Monetary Policy

April 13, 2017

The Monetary Authority of Singapore does not target an interest rate. Instead, monetary policy in a domestic money market sense is derivative of currency policy. The goal is a target corridor for the Singapore dollar’s trade-weighted value. Goals are made for the width of the currency band, its slope over time, and the mid-point between […] More

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