Deeper Analysis
U.S.-Euro Area PMI Spread in Manufacturing Collapses
July 1, 2010
The point differential between the U.S. and euro area factory purchasing manager indices narrowed 3.6 points to +0.6 in June, the least U.S.-advantageous spread since December 2008. Sooner or later, the euro’s downtrend against the dollar was bound to impact the two economies’ relative standing in manufacturing, where currency swings can produce huge shifts in […] More
Central Bank Watch
Dual Messages from the Swedish Riksbank as Initial Rate Hike is Made
July 1, 2010
By a 4-2 vote, the Executive Board agreed on Sweden’s first rate hike of the cycle, doubling the repo rate to 0.50% and thereby restoring such to a level last seen from April to early July of last year. Officials also noted that three low-costing central bank loans, which expired yesterday, would not be replaced, […] More
New Overnight Developments Abroad - Daily Update
Stocks Suffer Further as Third Quarter Begins
July 1, 2010
The Nikkei lost another 2.0% to 9192. Japanese stocks have plunged 10.2% since June 21 and 18.5% since April 15, roughly reversing half the prior recovery from the low in early March 2009. Elsewhere in the Pacific Rim, stocks fell overnight by 1.4% in Indonesia and China where a disappointed PMI reading was announced, 1.5% […] More
