Chinese CPI and PPI
Declines in Kiwi, Ruble and Turkish Lira
August 9, 2018
The dollar advanced overnight by 1.6% against the New Zealand dollar, 0.9% versus the Russian ruble, and some 2.5% vis-a-vis the Turkish lira. Not only did the latest review of New Zealand monetary policy end with leaving the Official Cash Rate at 1.75%, half its level prior to the June 2015 first of 7 reductions, […] More
Post-G7 Market Reaction Suppressed ahead of Tomorrow’s Kim-Trump Meeting and Several Key Central Bank Policy Reviews Later this Week
June 11, 2018
The annual summit of Group of Seven leaders over the weekend went poorly (see my review), but share prices mostly rose today in Asia and Europe. Stocks advanced 0.8% in South Korea, 0.5% in Japan, 0.4% in New Zealand, 0.3% in Hong Kong, 0.2% in Singapore, and 0.1% in India but slipped 0.5% in China […] More
Down Day for Stocks and Dollar
April 11, 2018
Military conflict between U.S. and Russian forces in Syria appears at hand. Trump is promising missile strikes, and Russia claims to have the ability to knock them out of the sky before targets are hit. Investors are uneasy that these hostilities will escalate further. U.S. consumer price inflation accelerated further in March in spite of […] More
Commodity Prices Strengthen
October 16, 2017
West Texas Intermediate crude oil advanced 1.3% to $52.10 per barrel, and copper strengthened nearly 3%. Comex gold is 0.2% higher. Comments over the weekend at the IMF meetings in Washington from the likes of Yellen, Zhou, and Constancio stressed that growth is doing well and expressed puzzlement that wage inflation continues to lag. BOJ […] More
U.S./North Korean Tensions Lift the Swiss franc, Yen, Yuan and Gold
August 9, 2017
President Trump’s warning to North Korea of fire and fury has captured market attention. The dollar fell 0.8% against the franc, 0.5% versus the Chinese yuan, 0.3% relative to the yen, and 1.2% against gold. Sovereign debt is in demand, meanwhile, with 10-year yields down 4 basis points in the United States and France, six […] More
Markets Calm Considering What’s Happened
June 9, 2017
Comey’s testimony, in which he basically called Trump a liar and laid out accusations that could be construed as an attempted obstruction of justice, may yet prove very damaging to the Trump Presidency and elicited a fairly rare full six-column headline on page 1 of the New York Times. The Conservatives lost their parliamentary majority […] More
Further Leap in U.S. Consumer Confidence Lifts Dollar
December 9, 2016
The Reuters/U. Michigan consumer sentiment index leaped to 98.0 in early December from final readings of 93.8 in November and 87.2 in October. The latest score almost matches the greatest optimism since 2004. Excitement about the coming Trump presidency appears responsible for this much greater-than-anticipated upturn. The dollar climbed overnight by 1.0% against the yen […] More
Chinese Price Data Lend Support to Investor Sentiment
October 14, 2016
The perceived strength of the Chinese economy continues to exert enormous influence over market sentiment. Poor trade data on Thursday sent global stocks tumbling, but today’s price reports indicated higher-than-expected inflation and generated a relief rally. Chinese consumer prices advanced 0.7% on month in September and 1.9% on year, the biggest 12-month increase since a […] More
Persistent Worries about Global Growth
September 9, 2016
Markets had rallied earlier this week as perceived odds for a U.S. interest rate increase were trimmed because of softer-than-expected U.S. data. Now, markets are nervous again. The Fed may be proceeding very gradually with rate normalization, but at the same time other central bankerss like those at the ECB and BOJ are having mounting […] More
Sterling Sinks Below $1.3000 to Monthly Low
August 9, 2016
Sovereign debt prices rose. So did stocks, oil, the yen and dollar. Gold and industrial metal prices fell. There are holidays today in Singapore and South Africa. Today is the ninth anniversary of the onset of the U.S. subprime mortgage crisis and the 42nd anniversary of the resignation of former President Nixon. The dollar dipped […] More
