Euroland current account

Japanese Satisfaction Evident with a Weakening Yen

December 20, 2016

The yen fell 0.8% against the dollar after the Bank of Japan left its accommodative monetary stance unchanged despite a sharply lower yen. Governor Kuroda dispelled any thought of a possible rate hike, noting that depreciation lifts import prices, overall inflation, growth and expected inflation. The dollar also advanced 0.5% against the pound, 0.3% versus […] More

Constructive Start to a Holiday-Shortened Week

March 21, 2016

The Shanghai Composite Chinese equity index advanced 2.2% in response to a relaxation of government curbs there on margin lending. Japanese markets were closed for the Vernal Equinox holiday. Other stock markets in the Pacific Rim rose 1.3% in India, 0.5% in New Zealand and 0.3% in Hong Kong.  In Europe, equities are mixed, with […] More

The Fed Has Spoken, and Now Markets React

September 18, 2015

The ten-year Treasury in futures trading slid another 4 basis points overnight and is 11 bps below its level at the time of the FOMC announcement yesterday. Ten-year British gilts, German bunds and Japanese JGB yields fell overnight by 11, 8, and 2 basis points. The dollar is especially weak against commodity-sensitive currencies, falling 1.4% […] More

A Difficult Day for Stocks in China and Hong Kong

January 19, 2015

Global financial markets last week were convulsed by a profound and unexpected change in Swiss currency policy.  With the United States closed for Martin Luther King Jr’s birthday, another policy-induced bout of turmoil hit the stock markets of China and Hong Kong, which respectively tumbled 7.7% and 1.5%.  The former drop was the greatest since […] More

Weaker Yen and European Stocks, Stronger Asian Equities, and Firmer Oil

December 19, 2014

A volatile week in the marketplace has seen more swings on Friday, but dollar movement against the majors has been less than 0.3% except for a 0.4% drop in the yen. Share prices in the Pacific Basin advanced by 2.5% in Australia, 2.4% in Japan, 1.7% in South Korea, 1.3% in Hong Kong, 1.1% in […] More

All Quiet on the Scottish Front

September 19, 2014

The referendum on Scottish independence was defeated by a 55-45% vote and in 28 of 32 constituencies.  In relief, the British Ftse has risen 0.7%.  Equities advanced 1.6% in Japan, 0.7% in China, 0.6% in Hong Kong, 0.5% in New Zealand, 0.4% in Indonesia and 0.3% in South Korea and Australia.  The German Dax and […] More

Scant Change in Dollar

March 21, 2014

The dollar is unchanged from Thursday closing levels against the yuan, loonie and sterling.  The U.S. currency lost 0.1% relative to the yen, euro and Swissie and shows larger 0.4% declines versus the Australian and New Zealand dollars. Asian share prices rebounded 3.4% in China, 1.2% in Hong Kong, 0.8% in Australia and South Korea […] More

Beyond the Taper

December 19, 2013

In the wake of yesterday’s Federal Reserve “taper” initiative, the dollar is higher, the yen is softer, 10-year sovereign debt yields are up, U.S. share prices are holding onto most of their gains, European stocks have rallied, and perhaps most dramatically of all, gold has plunged another 3.3% and is below $1200 per ounce. New […] More

Chinese Mojo

November 18, 2013

The initial disappointment of investors regarding the Third Chinese Plenum has given way to euphoric relief as details of proposed reforms filtered out subsequently.  A 3.3% advance in Chinese share prices was almost matched by gains of 2.7% in Hong Kong’s Hang Seng index and 2.2% in India’s Sensex.  Share prices rose 1.3% in India […] More

Federal Reserve in the Spotlight

September 17, 2013

Even as the Federal Open Market Committee meets today for the first of a critical two-day policy meeting, a story has emerged that Janet Yellen, the present vice-chairperson, is now the front-running candidate to succeed Ben Bernanke as chair-person.  Bernanke’s second 4-year term ends in late January. In other central bank news, Minutes from the […] More