Bernanke
Comments on the Bernanke Press Conference
April 25, 2012
Several useful messages were delivered at the press conference. One of the biggest downside growth risks still facing the United States is the uncertain degree of fiscal drag that will be felt at the start of next year. If Congress legislates no changes in planned austerity from the spending and tax side, the Fed Chairman [...] More
Sterling Declined
April 25, 2012
Britain’s disappointing first-quarter GDP report depressed sterling. Small business sentiment in Japan also underperformed expectations. Speculation persists that the Bank of Japan will ease policy on Friday. Investors await today’s FOMC statement at 16:30 GMT and Fed Chairman Bernanke’s press conference at 18:15 GMT. New Zealand and Australia were closed to day for ANZAC Day, [...] More
Chinese GDP Disappointment Quells Mini-Stock Market Rally
April 13, 2012
Pacific Rim equities extended the Wednesday-Thursday recovery in global share prices. Stocks advanced 1.8% in Hong Kong, 1.6% in Taiwan, 1.5% in Pakistan, 1.3% in Thailand, 1.2% in Japan, and 1.0% in Australia and The Philippines. In Seoul where there was some relief that North Korea’s rocket launch had failed, stocks gained 1.1%. Then came [...] More
Marking Time Ahead of U.S. Data Releases
March 27, 2012
Remarks by Fed Chairman Bernanke on Monday reaffirming no predisposition to abort the ultra-easy policy stance sooner than implied previously had an electrifying impact on financial markets, boosting the commodities and equities and dampening the dollar and bond yields. The S&P closed at its best level since mid-May 2008. Overnight in the Pacific Rim, share [...] More
Risk Aversion Fanned by Preliminary March PMI Readings
March 22, 2012
In Europe, share prices have tumbled 1.5% in Paris, 1.4% in Germany, and 0.9% in Britain. There were some big tumbles in the Pacific Rim including drops of 1.4% in Thailand, 2.3% in India, and 0.9% in Singapore. But equities rose 1.0% in Taiwan, 0.5% in Australia and 0.4% in Japan. Chinese stocks dipped 0.2%. [...] More
The Morning After
March 14, 2012
Yesterday was a good day for investors, who sighed continuing relief because 1) a disorderly Greek default had been averted and prompted Fitch to upgrade that country’s credit rating to B-, 2) a Fed statement that upgraded growth prospects but did not tighten its policy stance, 3) U.S. stress test results where 15 of 19 [...] More
Persistent Worry about Greece and Other Peripherals
February 7, 2012
Greek Prime Minister Papademos is to hold more meetings with the main political factions today, as a deal on austerity remains elusive. Concern is also mounting that Portugal may default, too. Following massive yen sales on October 31 totaling JPY 8.072 trillion, Japan’s Ministry of Finance intervened covertly each of the first four days in [...] More
More Bad News for Europe
October 18, 2011
The ZEW Institute released its October figures for Investor expectations toward Germany and Europe and suggested that Germany already may be in technical recession. The data were much worse than anticipated. For Germany, the expectations index worsened five points to minus 48.3, the lowest level since November 2008. Such had been at +3.1 in May. [...] More
Bernanke
October 4, 2011
In testifying today before the Joint Economic Committee, the Fed Chairman made predictable remarks, indicating that the central bank has not exhausted possible steps to support the U.S. economy but stressing that fiscal policy and other actions for which the Congress is responsible are more appropriate and effective avenues to be pursued. Nor was the [...] More
Eurogroup Decision Delayed on Aid to Greece
October 4, 2011
A Eurogroup meeting scheduled for October 13 was postponed that would have approved the next EUR 8 billion loan tranche to Greece. Reaction to Greek budget overrun revelations have been understandably poor. More austerity from Athens is urged. A decision on aid is not expected for about six weeks. After leaving the Official Cash Rate [...] More
