New Overnight Developments Abroad - Daily Update

Will U.S. Stocks Get Boxed Again: That is the Question

December 26, 2018

Many, many markets remained closed today for Boxing Day, St. Stephen’s Day (Italy) or a second day of Xmas (Germany and Hong Kong), but stock exchanges in the United States, where the DJIA tanked over 600 points in an abbreviated session on Christmas Eve, reopen and may set the tone for the rest of the […] More

New Overnight Developments Abroad - Daily Update

A 5% Plunge in Japanese Share Prices on Christmas Day

December 25, 2018

Almost all markets are closed this Christmas Day, Japan’s being the most notable exception. The Nikkei 225 lost 1,010 points or 5.0% while the Topix index dropped 4.9% in continuing panic following yesterday’s largest slide ever in U.S. share prices on the last business day before Christmas. Equities in other open markets fell 2.3% in […] More

Deeper Analysis

Trump and the U.S. Stock Market

December 24, 2018

Earlier in his presidency, Donald Trump would frequently cite rising U.S. share prices as a vote of confidence in his leadership and economic policies. However, less than two years into his term, the Nasdaq and S&P 500 have entered bear market territory, and the Dow Jones Industrials, with a 19.1% slide from peak, is knocking […] More

New Overnight Developments Abroad - Daily Update

Sleepless at The White House

December 24, 2018

The Christmas break, which has begun in many countries around the world, has not halted the the Byzantine atmosphere surrounding the U.S. White House. Defense Secretary Mattis resigned but agreed to stay on through February 28, but President Trump has asked him to be gone by January 1st. The President is reportedly also seeking ways […] More

Foreign Exchange Insights and Next Week

Next Week

December 21, 2018

Holiday Closures: Many countries will be closed either all Monday (Christmas Eve) or for part of the that day. Japan also will be shut Monday in observance of the Emperor’s Birthday even though it actually falls on Sunday. Most markets but notably not Japan are closed Tuesday for Christmas.  On Wednesday (Boxing Day and St. […] More

New Overnight Developments Abroad - Daily Update

Dollar Stages Moderate Rebound

December 21, 2018

Broad dollar gains overnight amount to 0.6% against the kiwi, 0.4% relative to the loonie and euro, 0.3% vis-a-vis the peso, Swiss franc, and yuan, 0.2% versus the Australian dollar and 0.1% relative to sterling. Dollar/yen is unbalanced. In the continuing follies that markets have come to expect from the U.S. government, Defense Secretary Mattis […] More

Central Bank Watch

Bank of Mexico Tightens for Fourth Time in 2018

December 20, 2018

A 25-basis point increase in Mexico’s overnight interbank rate to 8.25% announced today  brings the cumulative increase this year to a full percentage point, which matches what the Fed did this year and keeps the premium relative to the federal funds target at a very wide six percentage points. Aside from earlier hikes this year […] More

Central Bank Watch

First Swedish Monetary Policy Rate Hike since 2011

December 20, 2018

The Swedish Riksbank Executive Board raised its repo rate from -0.50% to -0.25%, marking the first rate hike since July 2011 and the first change since a 15-basis point cut in February 2016. The rate has been zero percent or lower since October 2014. A statement from the Board doesn’t anticipate another rate hike until […] More

New Overnight Developments Abroad - Daily Update

Softer Dollar on the First Day After the Fed’s Rate Hike

December 20, 2018

Markets did not take comfort from Wednesday’s FOMC interest rate hike or the upbeat economic prognosis of Chairman Powell. The dollar fell overnight by 0.6% against the euro, 0.5% relative to the yen and  Swiss franc, 0.4% vis-a-vis sterling, 0.3% versus the Australian dollar, and 0.2% against the yuan and loonie. Share prices fared poorly […] More

Central Bank Watch

Markets Not Reassured by Today’s Signals from the Fed

December 19, 2018

The FOMC statement accentuated the U.S. economy’s strong trends of domestic demand and labor market conditions. Comments about inflation were not modified. Concessions to recent jittery markets, President Trump’s criticism that raising interest rates is inappropriate, and the tilt in global data from mostly better-than-expected to primarily softer-than-expected results were slight and worded in a […] More

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