New Overnight Developments Abroad - Daily Update

Out of Fixed Income Assets and Into Stocks

November 15, 2019

After a few days that saw sovereign debt yields decline, ten-year U.S. Treasuries, German bunds and British gilts each rose two basis points overnight. In stock market action, equities rose 0.9% in Australia, 1.1% in South Korea, 0.7% in Japan and Taiwan but slipped 0.6% in China. European stock markets so far show gains of […] Read Article

Foreign Exchange Insights and Next Week

Next Week’s Menu: November 16-22

November 15, 2019

Central Banks: Monetary policies to be reviewed in Indonesia, Hungary, China and South Africa. Policy meeting minutes to be published by the Fed, Reserve Bank of Australia, and European Central Bank. Reserve Bank of Australia Governor Lowe, Bank of Canada Governor Poloz, and ECB President Lagarde will be speaking publicly. Special Events and Holidays: A […] Read Article

Central Bank Watch

Bank of Mexico Interest Rate Cut Again

November 15, 2019

The Governing Board of the Bank of Mexico voted 5-2 in favor of a third consecutive 25-basis point interest rate cut, which becomes 7.5%. The two dissenters wanted a 50-basis point reduction. The combined 75-basis point reduction remains small in comparison with 500 basis points of tightening during 2016-18. Officials released a statement that notes […] Read Article

Deeper Analysis

Only a Slight U.S. Factory Sector Advantage Versus Euroland

November 4, 2019

The ISM-compiled U.S. manufacturing purchasing managers index in October rose 0.5 index points to a 2-month high of 48.3, and Euroland’s IHS-compiled PMI edged 0.2 points higher to 45.9, which also represents a 2-month high. The differential between those two data series of 2.4 points in favor of the United States was similar to the […] Read Article

New Overnight Developments Abroad - Daily Update

Important Japanese, Euro Area, and Chinese Data Released

November 14, 2019

Japanese real GDP expanded at a lower-than-forecast 0.2% last quarter at a seasonally adjusted annualized rate. It was the weakest quarterly growth rate in a year. Net exports and inventories combined to exert a 1.8 percentage point drag on GDP growth. The GDP price deflator rose 0.6% between the third quarters of 2018 and 2019. […] More

Central Bank Watch

Reserve Bank of New Zealand Didn’t Cut Interest Rates Further

November 13, 2019

There’s already been one central bank surprise, this from the Reserve Bank of New Zealand. Officials there had been expected to extend their easing. New Zealand’s Official Cash Rate previously this year had been reduced by 25 basis points in May and 50 basis points to a mere 1.0% in August, but policymakers decided not […] More

New Overnight Developments Abroad - Daily Update

A Little Bit of Everything This Wednesday

November 13, 2019

Investors have much to watch today including two separate congressional events of great interest. Public hearings on a possible impeachment of President Trump begin at 10:00 EST in the House Intelligence Committee, and one hour later Fed Chairman Powell testifies on the economic outlook before the Joint Economic Committee. There’s already been one central bank […] More

New Overnight Developments Abroad - Daily Update

Dollar and Stock Markets Up

November 12, 2019

The dollar traded up overnight by 0.4% against the kiwi, 0.3% relative to the Swiss franc, 0.2% vis-a-vs the euro, loonie and sterling, and 0.1% against the Australian dollars. Stock markets in the Pacific Rim advanced by 0.8% in Japan, South Korea, Taiwan and Singapore and by 0.5% in Hong Kong and Indonesia. India is […] More

New Overnight Developments Abroad - Daily Update

Active Day for Markets In Spite of Holidays

November 11, 2019

Equity markets are open despite today’s observance of Veterans Day in the United States, Remembrance Day in Canada and Armistice Day in France, which observes the 101st anniversary of the end of World War I. Investors are reacting to some meaningful data and other developments. Street protests in Hong Kong turned more violent, sending the […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: November 9-15

November 8, 2019

Central Banks: Monetary policy reviews are scheduled next week in New Zealand, Sri Lanka, the Philippines and Mexico. Fed Chairman Powell gives two days of testimony on the U.S. economic outlook, appearing Wednesday before the Senate Economic Committee and Thursday before the House Budget Committee. Other Fed officials speaking in public during the week include […] More

Central Bank Watch

Central Reserve Bank of Peru

November 8, 2019

The Central Reserve Bank of Peru late yesterday announced a 25-basis point reduction of its reference interest rate to 2.25%. This follows a similar cut in August. There were also two 25-basis point cuts in the first quarter of 2018 and three such cuts in the second half of 2017. A released statement observes weakness […] More

New Overnight Developments Abroad - Daily Update

Dollar and Sovereign Debt Yields Firm… Commodity and Share Prices Lower

November 8, 2019

The dollar appreciated overnight by 0.6% against the kiwi, 0.3% versus the Australian dollar, 0.2% relative to the loonie, yuan, and peso, and 0.1% vis-a-vis the yen, euro, sterling and Swiss franc. The 10-year gilt and U.S. Treasury yields extended their rise by another three basis points. Comparable sovereign debt yields in Italy, Greece, Portugal […] More

Central Bank Watch

Bank of England Policy Left As Is But Reveals a Dovish Sign

November 7, 2019

Sterling’s slide reflects one of the days biggest surprises. While the Bank of England Monetary Policy Committee left unchanged existing stocks of corporate bond purchases, U.K. gilt purchases, and the 0.75% bank rate, the vote by the 9-person committee on the interest rate level drew dissents favoring a cut by Michael Saunders and Jonathan Haskel. […] More

Central Bank Watch

Serbian Central Bank Rate Cut

November 7, 2019

the National Bank of Serbia’s executive board did make a change in its policy rate, cutting such by 25 basis points to 2.25%. This is the third such cut since July. A statement of explanation cites weakening inflationary pressure and the easing actions of other central banks but asserts that Serbian domestic macroeconomic indicators continue […] More

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