Central Bank Watch
FOMC Preview
June 19, 2019
After meeting last time seven weeks ago, the Federal Open Market Committee upgraded its assessment of economic growth, called the U.S. labor market strong, maintained the federal funds target range at 2.25-2.50%, and also kept the buzzword “patient” in describing its predisposition toward future adjustments of the policy stance. In rhetoric from Chairman Powell and […] More
New Overnight Developments Abroad - Daily Update
Much Riding on Fed Chairman’s Press Conference
June 19, 2019
The dollar is unchanged from Tuesday closing levels against the yen, yuan, kiwi, and Australian dollar. The greenback has slipped 0.4% against the Swiss franc, 0.3% relative to sterling but just just 0.1% vis-a-vis the loonie and euro. U.S. President opened a fresh topic in the 24-hour news cycle, accusing ECB President Draghi and that […] More
New Overnight Developments Abroad - Daily Update
Confidence Rising that Central Banks Will Counter Deteriorating Global Economic Outlook
June 18, 2019
Today could have been an ugly day in world financial markets. The Japanese Nikkei lost 0.6% overnight. Ten-year sovereign debt yields show big declines of 17 basis points in Italy, 10 bps in France and Spain, 7 bps in the United States and Germany, and six bps in the U.K.. The German ZEW Institute’s June […] More
New Overnight Developments Abroad - Daily Update
A Quiet Uneventful Monday So Far
June 17, 2019
The third week of June is getting off to a slow start in world financial markets. Trade tensions between the United States remain high amid uncertainty over whether Trump and Xi meet at the G20 meeting later in the month. Investors are also paying close attention to central bank activities, as the Fed, Bank of […] More
Deeper Analysis
Next Week
June 14, 2019
Central Banks: Monetary policy meetings at the Federal Reserve, Bank of Japan, Bank of England, and in Norway, Turkey, Thailand, Taiwan, Brazil, and the Philippines. The FOMC will release updated forecasts, and Chairman Powell will preside over a press conference. Governors Carney of the Bank of England and Lowe of the Reserve Bank of Australia […] More
Central Bank Watch
Russian Monetary Stance Eased as Expected
June 14, 2019
The Central Bank of Russia today cut its benchmark interest rate for the first time since March 2018. The 25-basis point rate reduction to 7.5% had been foreshadowed in comments made after the previous monetary policy review, and today’s released statement points to more rate relief in coming months if inflation continues to settle back […] More
Central Bank Watch
Swiss Quarterly Monetary Policy Review
June 14, 2019
The Swiss National Bank’s quarterly monetary policy review yesterday left the expansionary stance unchanged. Viewing their currency to be overly pricey, officials remain prepared to intervene against excessive appreciation on a discretionary basis as appropriate. The 3-month sight deposit target remains negative 0.75% as defined by a -1.75 to -0.25% 3-month LIBOR corridor. However, officials […] More
New Overnight Developments Abroad - Daily Update
Most Stock Markets Slide Amid Continuing Geopolitical Tensions
June 14, 2019
Equities overnight by 1.0% in China, 0.7% in India, and 0.6% in Hong Kong. European losses so far amount to 0.8%, 0.7%, 0.6% and 0.5% in Germany, Spain, the U.K., and France. But the Japanese Nikkei closed 0.4% higher. The United States is engaged in a three-frontal confrontation: a trade war with China, a potential […] More
Central Bank Watch
Central Bank of Turkey Keeps Existing Tight Stance
June 12, 2019
Turkish inflation has eased to a 9-month low of 18.7%, down from 19.1% in April and a peak of 25.2% last October. The economy is rotating away from overheated domestic demand and toward externally-driven growth, but these desired developments have not progressed far enough to persuade officials to take their foot off the monetary brakes […] More
New Overnight Developments Abroad - Daily Update
Investors in Cautious Mood
June 12, 2019
Trade war concerns continue to weigh on financial markets. Share prices fell 1.4% in Hong Kong where street riots escalated in protest of an extradition law. Equities also dropped 0.6% in China, 0.5% in India and Indonesia and 0.4% in Japan. European stock markets so far have lost 0.8% in Italy, 0.7% in the U.K. […] More
