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Asian Growth Concerns.. British CPI and Euroland GDP Figures Release.. And Waiting for FOMC Minutes Due Later Today
August 16, 2023
The Chinese economy remains a concern that weighing on its regional neighbors as well. Property prices in China were 0.1% lower in July than a year earlier. That’s follows zero percent in the second quarter and disappointing retail sales, industrial production, corporate investment, and unemployment data reported yesterday. Equity markets today tumbled 1.3% in South […] More
A Quiet Day Ahead of U.S. Price Data Due Tomorrow and Friday
August 9, 2023
Overnight dollar movements range between +0.2% against the peso and Turkish lira to -0.2% versus the euro and renminbi. Equities recovered some ground after Italy’s government scaled back its windfall profits levy on banks. Share prices have rebounded 2.0% in Italy and 0.9%-1.3% in the U.K., Germany, France, and Spain. The Japanese Equities closed down […] More
Stronger Dollar and Higher Bond Yields Ahead of U.S. Price Data to Be Released Thursday and Friday
August 7, 2023
U.S. consumer price and producer price figures will be reported Thursday and Friday. Several other countries release price data on those days as well including Japan, Russia, Norway, Denmark, Italy, the Czech Republic, Ireland, Portugal, France, Spain, Brazil, and Romania. In advance, the 10-year U.S. Treasury yield is six basis points firmer today, and European […] More
Bank of England Interest Rate Hiked to 5.25%, Meeting Analyst Expectations
August 3, 2023
The Bank of England raised its bank rate by 25 basis points after a 6-3 vote that included two dissents favoring a 50-bp tightening and one committee member who preferred leaving the key rate steady. At 5.25%, the new rate level after 14 increases since December 2021 has climbed a total of 515 basis points. […] More
Brazilian Rate Cut, the First Since August 2020
August 3, 2023
The Central Bank of Brazil’s Selic interest rate was cut more sharply than anticipated to 13.25%. Such had been at 13.75% since the last hike in a long tightening cycle was done in August 2022. In all, the rate climbed 450 basis points in 2022 and 725 bps in 2021 from a pandemic base of […] More
Fitch’s Downgrade of the U.S. Debt Rating Pushes Long-Term Interest Rates Higher
August 3, 2023
In the wake of the announced downgrading of U.S. government debt and amid doubts about a coming recession, the 10-year Treasury yield rose nine basis points overnight and touched a high of 4.18%, which compares to 3.31% just over four months ago. 4.18% is the highest level since early last November. Other 10-year sovereign debt […] More
Weighted Dollar Strengthens to Three-Week High, While Bitcoin Weakens to Six-Week Low
August 1, 2023
The dollar strengthened overnight by 1.3% against the Australian dollar, 0.9% versus the New Zealand dollar, 0.6% vis-a-vis the Canadian dollar, 0.5% relative to the Japanese yen, 0.4% against the Swiss franc and sterling, 0.3% versus the Chinese renminbi and Mexican peso, but just 0.2% against the euro. The price of Bitcoin tokens dropped 1.2%. […] More
Many Data to Absorb Plus Bank of Japan Finally Modifies Yield Curve Control Parameters
July 28, 2023
At this month’s scheduled Board meeting, Bank of Japan policymakers sent a mixed message, on the one hand stressing “the Bank needs to patiently continue with monetary easing under Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control” but also at last tweaking the rules surrounding its long-term interest rate target with the assertion […] More
FOMC Rate Announcement at 18:00 GMT to Be Followed By Powell’s Press Conference
July 26, 2023
Investors are positioned for a further 25-basis point hike in the federal funds target later today and will pay particular attention to what is said about likely rate decisions over the balance of 2023. U.S. CPI inflation has slowed more rapidly than was expected to 3.0% from a peak of 9.1%, but labor market conditions […] More
World Financial Markets React to Hawkish FOMC Minutes and Worries About China’s Economy
July 6, 2023
In the first volatile day of the third quarter, share prices tumbled 3.0% in Hong Kong, 1.7% in Taiwan and Japan, 1.2% in Australia and 1.1% in Singapore. Equiities on all major European bourses have lost at least 1.0% so far including a 1.9% drop in the Paris CAC. U.S. stock futures were down around […] More
