Archive for March 2nd, 2009

Bank of Canada

March 2, 2009

The Bank of Canada will do no less than halve its overnight rate target to 0.5% at 14:00 GMT on Tuesday.  Economic trends justify a reduction of more than 50 basis points, but analysts expect officials to leave themselves a buffer before going all the way to zero rates. Last month the central bank revised […] More

Central Bank Watch

Reserve Bank of Australia

March 2, 2009

For the first time in several months, analysts had been somewhat split over whether the RBA will cut its cash rate again this month.  I expect another rate reduction.  The decision will be revealed at 03:30 GMT tonight (22:30 EST and 14:30 AEDT Tuesday).  The central bank previously cut the benchmark by 400 basis points […] More

Currency Markets in the News

Was Last Quarter a Depression?

March 2, 2009

People are increasingly using the term “depression” especially to describe the economy last quarter and currently.  Contraction has been rapid for both jobs and GDP, and the downturn extends to most economies.  U.S. circumstances do not qualify yet but may before this event is over. The unemployment rate remains more than a percentage point below […] More

Currency Markets in the News

Factory PMI Comparison: Further Relative Improvement of U.S. Versus Euroland

March 2, 2009

Manufacturing purchasing manager indices had sub-50 readings in both the United States and Euroland last month, connoting the obvious fact of significantly contracting activity on both sides of the Atlantic.  However, a comparison of the second derivatives, which tells if the rate of decline is intensifying or slowing, revealed relative improvement in the United States […] More

Canadian Real GDP Fell 3.4% Annualized Last Quarter

March 2, 2009

Real GDP fell 3.4% at a seasonally adjusted annualized rate (saar) in 4Q08 and by 0.7% from the final quarter of 2007.  The Bank of Canada in January had projected growth last quarter of -2.8% saar, followed by negative 4.8% in the current quarter.  The 4Q drop was Canada’s steepest since 1991 but much less […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Another Monday Plunge in Stocks

March 2, 2009

Equities tumbled 3.8% in Japan, 3.9% in Hong Kong, 4.2% in South Korea, 3.5% in Thailand, 3.9% in Singapore, 2.8% in Australia and 2.3% in Indonesia. In Europe, the Ftse, Cac40 and Dax have lost 4.4%, 3.9%, and 3.3%. Currency, bond, and commodity movements also reflect another surge in risk aversion. Latest scare is speculation […] More

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