Euroland current account
Sterling and Price of Oil Falter
June 20, 2017
Sterling declined 0.6% following delayed Mansion house speeches by Bank of England Governor Carney and Chancellor of the Exchequer Hammond. Carney reiterated warnings that Brexit will damage the British economy, cited anaemic wage growth and slower personal consumption, and expressed opposition to hiking the central bank’s interest rate. Hammond staked out a soft position on […] More
A Somewhat Calmer Session
May 19, 2017
In Europe, stocks have risen 0.8% in Switzerland and Spain, 0.7% in Italy, 0.6% in Greece, 0.5% in France, 0.4% in the U.K., and 0.3% in Germany. China’s market closed unchanged. Japan’s Nikkei rose 0.2%, and Australia’s bourse slipped 0.2%. The erosion of the dollar’s external value continues. The euro climbed another 0.5%, capping its […] More
Commodities, Bond Yields, Stocks and Sterling Lower
February 17, 2017
The dollar gained 0.5% against sterling, which was depressed by a poor report on British retail sales. The greenback also rose 0.4% versus the kiwi, 0.3% vis-a-vis the Australian dollar, 0.2% relative to the euro, Swiss franc, yuan, and peso. But it lost 0.4% against the Japanese yen. Prices for copper and other industrial metals […] More
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
