New Overnight Developments Abroad - Daily Update

A Better Trading Session for Stocks

March 28, 2017

Only a few insignificant data reports have been released in Asia and Europe. Markets are viewing the implications of the U.S. healthcare bill fiasco on other Trump Administration legislative plans with less alarm and took advantage of the softer dollar and lower long-term interest rates to rebuild equity positions. Renewed confidence in the buoyancy of […] Read Article

Foreign Exchange Insights and Next Week

Next Week

March 24, 2017

Central Banks: Interest rate meetings in South Africa, the Czech Republic, Romania, Czech Republic, Mexico and Thailand. BOJ releases summary of mid-March Board meeting. Fed officials scheduled to speak publicly include Kaplan, Evans, Williams, George, and Rosengren. Other monetary policymakers speaking in public are Governor Zhou of the People’s Republic of China, Governor Poloz of […] Read Article

Central Bank Watch

Magyar Nemzeti Bank Retains Loose Policy

March 28, 2017

Hungary’s monetary policy interest rate has been at 0.90% since a 15-basis point reduction in May 2016 and continues to be augmented by unconventional stimulus. A policy statement released today by the Monetary Council indicates a continuing intention to use these multiple means to secure the inflation target of 3% in a sustainable way by […] Read Article

Deeper Analysis

Comment on U.S. Current Account Data

March 21, 2017

U.S. President Trump has cast great attention on the U.S. trade and current account deficits, calling such a drag on the growth of U.S. real GDP and jobs and insinuating that the deficit expanded and the jobs and GDP situations deteriorated under his predecessor’s stewardship. The facts indicate otherwise¬†otherwise. The current account deficit averaged 2.5% […] Read Article

Uncategorized

Dollar, Stocks, and Bond Yields Drop

March 27, 2017

Markets reacted poorly to the scrapped U.S. health care bill. Disappointment transcends Trump’s inability to secure this promised deal. The repeal and replacement of Obamacare was intended to generate cost savings to the government needed to finance planned tax cuts. Tax reform will now be associated with larger fiscal deficits than had been planned, so […] More

Central Bank Watch

Central Bank of Colombia

March 24, 2017

A statement has been released after the third 25-basis point reduction of Colombia’s benchmark interest rate in four months. The rate becomes 7.0%, lowest since last May. From April 2014 until July 2016, 15 25-basis point interest rate hikes were engineered by monetary authorities. While inflation of 5.2% in February was higher than the 3% […] More

Central Bank Watch

Bank of Russia Cuts Key Interest Rate to 9.75%

March 24, 2017

Having previously cut its interest rate by six percentage points during the first seven months of 2015 and by an additional 50 basis points each in June and September of last year, most analysts were not anticipating further easing at this time. A released statement concedes that inflation risks “remain elevated.” Nonetheless, the ruble has […] More

Central Bank Watch

Central Bank of Sri Lanka Raises Deposit and Lending Rates by 25 Basis Points

March 24, 2017

This third round of tightening was smaller in size (25 basis points) than the incremental increases of 50 basis points each in February and July of 2016. The Standing Deposit and Standing Lending Rates now become 7.25% and 8.75%, the cumulative 125 basis point hike since last July reverses more than half of the previous […] More

New Overnight Developments Abroad - Daily Update

House Vote, Some PMI Results, and Divergent Interest Rate Moves

March 24, 2017

It’s deja vu this Friday. The repeal and replace vote in the U.S. House of Representatives to replace the ACA with the Republican Insurance Policy, which was scheduled for Thursday, is to happen instead today. President Trump wants no more negotiations on this. The result looms as a huge test of the new president’s ability […] More

Central Bank Watch

Filipino Central Bank Interest Rates Unchanged

March 23, 2017

At the second meeting of the monetary board of Bangko Sentral ng Pilipinas, all policy settings including the 3.0% reverse repo rate were kept unchanged. A released statement calls inflation manageable while conceding that price risks are skewed somewhat to the upside. Inflation has picked up in the first couple of months of 2017 due […] More

New Overnight Developments Abroad - Daily Update

Wait and See Market Mood

March 23, 2017

After stocks sold off earlier this week, there’s been a pause this Thursday, as investors await the U.S. House of Representatives vote on the Republican Insurance Policy and¬†the scheduled public comments of Fed Chair Yellen and Minneapolis Fed District President Kashkari, who dissented from this month’s federal funds rate hike. Wednesday’s terrorist act in London […] More

Central Bank Watch

New Zealand Official Cash Rate Held Steady at 1.75%

March 22, 2017

As they decided at the first 2017 meeting held February 9, policymakers at the Reserve Bank of New Zealand agreed to keep their key interest rate at 1.75%, a record low reached after a 25-basis point cut last November. That was the seventh 25-basis point reduction since June 2015. The official cash rate had been […] More

New Overnight Developments Abroad - Daily Update

Continuing Retreat in Share Prices

March 22, 2017

The Japanese Nikkei tumbled 414 points or 2.1%. Equities also fell 1.6% in Australia, 1.4% in Hong Kong, 1.1% in India, 1.3% in Singapore and 0.5% in China and South Korea. This followed yesterday’s U.S. selloff and extended into Europe where stocks so far today are down 1.4% in Greece, 0.8% in the U.K., 0.6% […] More

New Overnight Developments Abroad - Daily Update

Dollar in Retreat

March 21, 2017

The dollar’s weaker again. The euro rose above $1.080 for the first time since February 2 and hit its best level since January 31. The greenback has fallen 0.9% against sterling, 0.7% relative to the euro, 0.4% vis-a-vis the kiwi, 0.3% versus the Swiss franc, Chinese yuan and Mexican peso, 0.2% against the loonie, and […] More

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