Archive for August 2015

New Overnight Developments Abroad - Daily Update

Chinese Equities Rose Nearly 5% Today

August 10, 2015

The Shanghai Composite Index’s 4.9% advance on Monday was powered by merger speculation and set a positive tone for share prices elsewhere.  Stocks climbed 0.6% in Australia and Hong Kong, 0.4% in Japan, and so far have advanced by 2.3% in Greece, 1.1% in Spain, 0.8% in Italy, 0.7% in Switzerland and 0.6% in Germany […] More

Foreign Exchange Insights and Next Week

Next Week

August 8, 2015

Central Bank Beat:  Interest rate meetings in South Korea, Chile, Peru, and The Philippines.  Published minutes from the Bank of Japan’s July meeting.  The ECB Account of the last Governing Council meeting.  Lockhart of the Fed and Lowe of the Reserve Bank of Australia speak publicly. 2Q GDP Reports:  Euroland, Malaysia, Singapore, Hong Kong, Taiwan, […] More

Central Bank Watch

Bank of Japan Keeps Same Policy Stance and Economic Assessment

August 7, 2015

A statement almost identical in text the the prior one in July was released after five hours and 21 minutes of deliberations over two days by the Bank of Japan’s Policy Board.  In an assessment proclaiming the economy in continuing moderate recovery despite core inflation of around zero for now, housing construction was upgraded marginally, […] More

New Overnight Developments Abroad - Daily Update

A Slew of Market Factors this Friday

August 7, 2015

The dollar has risen 0.4% against the euro, loonie and sterling.  It got a boost from the monthly Labor Department jobs report, which showed Unchanged unemployment (5.3%), participation rate (62.6%), and jobs-to-population ratio of 59.3%. The creation of 215K nonfarm payroll jobs last month, slightly less than forecast, but a combined 14K upward revision to […] More

Central Bank Watch

Bank of England Released Detailed Summary of This Week’s MPC Policy Meeting

August 6, 2015

By a vote of 8-1 with Ian McCafferty preferring a rate hike, the Monetary Policy Committee kept its 0.50% interest rate and GBP 375 billion asset purchase program limit.  “given the likely persistence of the headwinds weighing on the economy, when Bank Rate does begin to rise, it is expected to do so more gradually […] More

New Overnight Developments Abroad - Daily Update

Rate Hike in the U.K. Unlikely Until 2016

August 6, 2015

Sterling fell 0.6% overnight against the dollar, which otherwise shows gains of 0.2% versus the Swiss franc and Aussie dollar but losses of 0.4% relative to the kiwi and 0.1% vis-a-vis the loonie and euro.  The yen and yuan are unchanged against the dollar. Share prices declined 1.1% in Australia, 0.9% in Indonesia and China, […] More

Deeper Analysis

Services PMI Spread Between U.S. and Eurozone Widened Sharply in July

August 5, 2015

The ISM reported a 4.3-point increase in the U.S. non-manufacturing purchasing managers index (PMI) to 60.3, highest since November.  Euroland’s services PMI, in contrast, fell 0.4 points last month to a two-month low.   The resulting PMI differential between the two economies therefore climbing to an 8-month high of 6.3.  This augmented U.S. advantage more than […] More

Central Bank Watch

Bank of Thailand Left Key Interest Rate Unchanged This Time

August 5, 2015

A statement released after Bank of Thailand officials decided unanimously not to change their 1.5% policy interest rate foresees gradual economic recovery, helped in part by a softer Thai baht, projects that inflation, which is now negative, will rise in the second half of this year and “judged that the conduct of monetary policy has […] More

New Overnight Developments Abroad - Daily Update

A Very Strong U.S. Non-Manufacturing Purchasing Managers Survey

August 5, 2015

The dollar appreciated 0.5% against the yen, 0.4% relative to the Australian dollar, 0.3% vis-a-vis the kiwi and Swiss franc and 0.2% versus the euro.  The dollar is down 0.3% against sterling and 0.2% versus the Canadian dollar but unchanged vis-a-vis the yuan. Chinese (-1.7%) and Greek (-2.9%) stocks took another tumble.  In other stock […] More

Central Bank Watch

National Bank of Romania

August 4, 2015

Romania’s central bank benchmark interest rate of 1.75% was not cut despite a drop in inflation caused by recent fiscal changes including reduced value added tax.  Today’s statement explains, “the strengthening over the short term of the transitory disinflationary impact exerted by the aforementioned fiscal measures masks the build-up of medium-term inflationary pressures, given the […] More

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