Central Bank Watch
Bank of Canada Tightens Again as Expected
October 24, 2018
In increments of 25 basis points, Canada’s central bank interest rate target has climbed from 0.50% at mid-2017 to 1.75% after today’s actions. Previous rate hikes occurred in July, May and January of this year as well as July 2017. These increases are part of a rate normalization campaign that, according to a released statement, […] More
New Overnight Developments Abroad - Daily Update
European Equities Helped by Softer Euro
October 24, 2018
European equities have partly recovered today in spite of disappointing Euroland, German and French preliminary purchasing manager survey findings for October. One support for European share prices may be the strengthening dollar, which is trading 0.6% higher against the euro and sterling as well as 0.3% up on the Swiss franc. President Trump expressed some […] More
New Overnight Developments Abroad - Daily Update
Intensifying Global Move Out of Riskier Assets
October 23, 2018
Investors are getting squeamish for political and economic reasons. Turkish President Erdogan again asserted that the Saudi killing of Khashoggi was premeditated. U.S. opinion polls suggest that with just 2 weeks left before the mid-term election, the pendulum is swinging back toward the Republicans, suggesting Trump may continue to control all branches of government. The […] More
New Overnight Developments Abroad - Daily Update
Rebound in China’s Stock Market and Peripheral Ezone Sovereign Debt
October 22, 2018
China’s stock market rose 4.1%, endowing other bourses in Asia and Europe in its wake. Following Friday’s disappointing Chinese GDP report, Beijing announced tax cuts and intentions to enact other stimulus measures. The yuan is 0.2% softer against the dollar. In other stock markets, share prices climbed 2.8% in Hong Kong, 1.1% in Indonesia, 0.6% […] More
Foreign Exchange Insights and Next Week
Next Week
October 19, 2018
Central Banks: Monetary policy reviews at the European Central Bank and in Canada, Russia, Sweden, Norway, Ukraine, Colombia and Turkey. ECB President Draghi, Bank of Canada Governor Poloz, Atlanta Fed President Bostic, and Reserve Bank of Australia Deputy Governor DeBelle and Assistant Governor Boulton will be speaking publicly. The Fed Beige Book, Bank of Canada […] More
Central Bank Watch
Central Bank of Chile
October 19, 2018
Chilean monetary officials agreed unanimously to the first interest rate hike since December 2015, raising its key rate by 25 basis points to 2.75% from 2.50%, which had prevailed since May 2017 and had constituted the lowest level since September 2010. In taking this first tightening, which markets had anticipated, officials noted that Chile’s output […] More
New Overnight Developments Abroad - Daily Update
Investors Remain on Edge
October 19, 2018
China reported the lowest on-year GDP growth (6.5% in 3Q) since the first quarter of 2009. Damning evidence continues to mount that the highest levels of the Saudi government were complicit in the likely death of dissident journalist Khashoggi. U.S. Treasury Secretary Mnuchin upcoming trip to Saudi Arabia was cancelled. Two Fed officials, Governor Quarles […] More
New Overnight Developments Abroad - Daily Update
Trump Fighting a Two-Front War Against Fed and Over His Stance on Saudi Arabia
October 18, 2018
Minutes from the FOMC September meeting minutes at which monetary officials again raised interest rates reveal confidence in continuing growth, a view shared by some that the fed funds target is likely to spend a while above the perceived long-run level, and a considerable time allotted to discussion of the ramifications of U.S.-Sino trade tensions. […] More
Deeper Analysis
Three Risks When Political Leaders Influence Monetary Policy
October 17, 2018
President Trump’s progressively blunt criticism of the Federal Reserve for a string of gradual interest rate hikes should surprise nobody. The president’s style of overturning institutions has taken him very far in politics. Criticizing Fed policy, even though the Chairman and two of the other current governors are his appointees, fits a pattern that has […] More
New Overnight Developments Abroad - Daily Update
Dollar Strengthens but Stock Market Rebound Short-lived
October 17, 2018
The dollar rose overnight except against the yen, which kept pace. Assorted dollar gains amounted to 0.6% vis-a-vis sterling, 0.4% versus the euro and peso, 0.3% relative to the Swiss franc, kiwi and Aussie dollar, and 0.2% against the loonie and yuan. Except in India, whose stock market closed down 1.1%, share prices in the […] More
