Disastrous Day for Share Prices in Asia and Europe

May 23, 2013

Japan’s Nikkei-225 index plunged 7.3%, the most for any single session since March 15, 2011 and the second greatest daily drop since October 24, 2008. Elsewhere in the Pacific Rim, stocks fell by 2.5% in Hong Kong, 2.0% in Australia, 1.9% in Taiwan and India, 1.8% in Singapore, 1.7% in Indonesia, 1.3% in China, 1.2% […] More

A Busy Day

May 22, 2013

Many things are happening today.  One spotlight is on central banks.  The BOJ did not change policy of aggressive quantitative easing.  The economic assessment was upgraded, but market players are somewhat disappointed that no concrete modifications were announced to stop the erratic yet sharply rising trend in JGB yields, which have roughly doubled since early […] More

Dollar Nicely Bid this Friday

May 17, 2013

Fresh impetus for a firm dollar was provided by San Francisco President Williams.  Usually aligned with Bernanke, he expressed growing confidence in the U.S. labor market and suggested that quantitative easing could be scaled back by summer. The dollar has climbed especially against commodity-sensitive currencies like the loonie (0.7%), kiwi (0.6%) and Aussie dollar (0.5%).  […] More

Weak Market Tone to End Decent Week

April 12, 2013

Share prices in Europe and Asia had a difficult session.  Japan’s ten-year JGB yield climbed five basis points and is over 15 basis points above recent low.  The dollar is up 0.7% against the euro but down 0.6% against the yen in a reversal of recent movements. Euroland industrial production data were disappointing.  Investors now […] More

U.S. to Release Several Indicators Today

March 26, 2013

Misgivings persist over the Cyprus bailout, which continues to be handled clumsily.  Banks in that country remain closed today and tomorrow.  European finance ministers first suggested the deal might be a trendsetter for other banking systems in trouble but then reverted to calling Cyprus a special case. Attention now shifts to the United States.  In […] More

Bernanke Put

February 27, 2013

Markets were reeling in the wake of Italy’s inconclusive election, but dovish remarks yesterday in round one of Humphrey-Hawkins testimony restored a better market tone that so far is holding.  Bernanke reprises his testimony today before the House Financial Services Committee, beginning at 15:00 GMT. The dollar has fallen 1.1% against the yen, 0.2% versus […] More

Currency Market Pause Between Major Events

February 26, 2013

Italian elections results sent all financial markets reeling yesterday, but incremental overnight movement in the dollar has been minimal.  It will take quite a while before political direction will be established in the euro area’s third largest economy, which places the prospects for reforms and continuing financial market calm in jeopardy.  In the meantime, investors […] More

FOMC Preview

January 30, 2013

Substantial market changes have occurred since the previous FOMC meeting seven weeks ago. Quantitative monetary easing hasn’t prevented the ten-year treasury yield from rising 32 basis points to 2.02%. The dollar has appreciated 9.4% against the yen but fallen by 3.5% against the euro. The price of West Texas Intermediate crude oil has advanced a […] More

Bernanke Press Conference Highlights

December 12, 2012

Several questions were directed at the fiscal cliff, a term first suggested by Bernanke.  He felt the metaphor was still good and didn’t support the position of some that if a deal can be reached a couple of weeks into 2013 that the damaging effect would be only slight.  He reiterated that the Fed doesn’t […] More

FOMC Statement

December 12, 2012

The latest FOMC statement takes several fresh actions, none very surprising, without an accompanying significant modification of its characterization of growth conditions or inflation. No comment on the dollar or net exports appears, but a softer exchange rate is an implicit objective. Quantitative easing will continue at the start of 2013 at a pace of […] More