Author Archive

New Overnight Developments Abroad - Daily Update

Reminders that Covid’s Negative Effect on Economic Activity Isn’t Going Away Quickly

March 2, 2021

Yesterday was a good day from a data release point of view, and equities rallied around the world. Today’s news has been more sobering. German retail sales, which had tumbled 9.1% in December but been forecast to be fairly flat in January, instead took a further 4.5% dive and recorded an even greater year-on-year slide […] More

Deeper Analysis

U.S. Manufacturing Advantage Narrows Relative to Euroland

March 1, 2021

Whereas the Institute of Supply Management’s monthly purchasing managers index, a measure of operating conditions where values above 50 imply increasing degrees of improvement and vice versa, increased 2.1 points in February to robust 60.8, the IHS-compiled euro area PMI climbed 3.1 points to 57.9. Consequently, the difference between those two data series narrowed by […] More

New Overnight Developments Abroad - Daily Update

Equity and Commodity Prices Up Amid Favorable Manufacturing News and Start of New Month

March 1, 2021

The dollar advanced overnight by 0.5% against the Swiss franc, 0.3% relative to the euro, and 0.2% versus the yen, sterling and in trade-weighted terms. Covid cases and deaths slowed yesterday, and Johnson & Johnson’s vaccine has been approved for distribution. Being the first day of the month, a slew of manufacturing purchasing manager surveys […] More

Deeper Analysis

February 2021 in Figures

February 27, 2021

Extreme financial market volatility on the final business day of February exerted a significant effect on monthly changes shown in the table below. The ten-year U.S. Treasury yield, for example, plunged from last week’s 12-month high of 1.61% to 1.40% at yesterday’s close, and the prices of oil and gold sank 3.2% and 2.6% on […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: February 27 – March 5, 2021

February 26, 2021

Central Banks: Monetary policies will be reviewed in Australia, Sri Lanka, Malaysia, Ukraine and Poland. New York Fed President Williams speaks publicly, and the Fed Beige Book of U.S. regional economic conditions will be published. Holiday: In South Korea, Independence Day falls on Monday. Purchasing Manager Surveys: Surveys covering manufacturing, service sector activities, and construction […] More

New Overnight Developments Abroad - Daily Update

February Ends with a Snag in the U.S. Fiscal Package, Plenty of Price and GDP Data, and President Biden’s First Military Action

February 26, 2021

World financial are exiting February in a highly volatile conditions. Share prices tumbled today by 5.0% in Taiwan, 4.0% in Japan, 3.8% in India, 3.6% in Hong Kong, 2.8% in South Korea, 2.4% in Australia, and 2.1% in China. Equity markets in Europe are down 1.5% in the U.K., 0.9% in France and Italy, and […] More

New Overnight Developments Abroad - Daily Update

Many Data Released Today as Inflation fears Continue

February 25, 2021

Shortly before today’s release of U.S. economic data, 10-year sovereign debt yields were showing considerable increases (for example, 8 basis points in the United States and Italy, 12 bps in Canada, 6 bps in Spain and the U.K., 5 bps in Germany and France, and 2 basis points in Japan). The trade-weighted dollar had eased […] More

New Overnight Developments Abroad - Daily Update

Monetary Policy Differences Starting to Emerge Across Nations

February 24, 2021

The dollar weakened 0.7% overnight against its closest neighbors, the Mexican peso and Canadian dollar. The greenback also fell by 0.6% versus the kiwi, 0.2% relative to the yuan, and 0.1% vis-a-vis the Australian dollar and sterling but advanced 0.6% relative to the Japanese yen and 0.3% vis-a-vis the Swiss franc. Equities were clobbered in […] More

Deeper Analysis

U.S. Pandemic Trends Since the November Election

February 23, 2021

February 22nd used to be a national holiday celebrating the birth of George Washington in 1732, but it was a solemn occasion in America this year, as the number of identified U.S. deaths from Covid-19 surpassed half a million people. That’s greater than the number of combined U.S. deaths from World War II, the Korean […] More

New Overnight Developments Abroad - Daily Update

Watching Stocks, Long-Term Interest Rates, and Events on Capitol Hill

February 23, 2021

Futures trading on the Nasdaq, which fell over 300 points yesterday, are down an additional 1.4% this Tuesday. The half-percentage point rise in the U.S. ten-year Treasury yield since mid-December reflects speculation that inflation and growth may be stronger than assumed later this year but not so much so as to provoke the Fed into […] More

css.php