Draghi

Many Competing Stories but a Unifying Theme is Better Growth in Europe by a Slower Trend Elsewhere

April 15, 2015

ECB President Draghi is wrapping up his press conference.  Policy wasn’t changed further.  Focus is currently on full implementation of policy initiatives taken recently.  Draghi finds the favorable impact of quantitative easing to be impressive: real interest rates have fallen as expected inflation is rising.  An important new sentence in the released statement explains what […] More

Market-Moving Comments and Then a Chinese Interest Rate Cut

November 21, 2014

ECB President Draghi gave a dovish speech reaffirming the central bank’s readiness to take further action to lift inflation back to target. U.S. President Obama spoke to the nation in prime time, announcing plans to permit some 5 million undocumented residents not to be deported. San Francisco Federal Reserve President Williams warned about the danger […] More

ECB Hidden Agenda: Weaker Euro

November 6, 2014

The ECB didn’t change its three interest rates.  The refinancing rate of 0.05% has been flanked by a marginal lending rate of 0.3% and a deposit rate of -0.20%.  Each was cut by 10 basis points in September. Draghi’s main message, emphasized in his press conference, is that the ECB balance sheet will be expanding […] More

Markets Closed for Holiday in Japan, the United States and Canada

October 13, 2014

After last week’s swoon, financial market volume on Monday will be suppressed by three market closures, Japan for Health and Sports Day, the U.S. for Columbus Day, and Canada for Thanksgiving. Stocks in the Pacific Basin closed down 2.8% in Taiwan, 1.1% in New Zealand, 1.0% in Indonesia, 0.7% in Singapore and South Korea, 0.6% […] More

A Number of Surprises

October 9, 2014

Fed officials rarely comment on the dollar, so the following passage from minutes of September 16-17 meeting of the FOMC caught the market’s attention, sending the dollar and bond yields lower and turning around Tuesday’s swoon in equities. Some participants expressed concern that the persistent shortfall of economic growth and inflation in the euro area […] More

Euro Remains Firm ahead of Draghi Testimony

July 14, 2014

ECB President Draghi will be testifying today before the EU Parliament in Strasbourg, France.  Excessive euro strength is a more pressing issue. Federal Reserve Chair Janet Yellen testifies Tuesday on Monetary Policy and the State of the Economy before the Senate Banking Committee.  She will reprise that testimony Wednesday before the House Financial Services Committee.  […] More

Holiday Closures in U.K. and United States

May 26, 2014

The United States is observing Memorial Day, and there is a spring bank holiday in Britain.  These closures will dampen market activity today.  The dollar is unchanged against the euro, Swiss franc and kiwi, up 0.1% versus the Chinese yuan and off 0.1% relative to the yen, loonie, Australian dollar and sterling. Share prices advanced […] More

Euro Weakens Further in Post-Draghi Reaction

May 9, 2014

The takeaway from yesterday’s ECB press conference is that it’s a matter of what kind of stimulus the ECB will announce next month, rather than whether something is going to be introduced then.  A big part of this preparation stems from mounting frustration with the euro’s prior appreciation and how the currency’s strength could promote […] More

Many Central Banks Meet — Most Retain Existing Policy Stances

May 8, 2014

Central banks in Malaysia, Indonesia, Norway, and the Philippines left key interest rates unchanged at 3.0%, 7.5%, 1.5% and and 3.5%, respectively.  All these actions were as expected.  The National Bank of Serbia, in contrast, cut its key policy interest rate to 9.0% from 9.5%.  Next up is the Bank of England, then the ECB […] More

Further Rise of Share Prices Ahead of ECB Event

March 6, 2014

Stocks have risen 1.6% in Japan, 1.1% in India, 0.9% in Taiwan, 0.8% in New Zealand, 0.6% in Hong Kong and Indonesia, and 0.5% in China.  In Europe, equities are up so far by 1.3% in Spain, 0.7% in France, 0.3% in Germany and Switzerland, and 0.2% in Britain.  The dollar fell overnight by 0.8% […] More

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