French business sentiment
Fear of a U.S.-Sino Trade War and Fear of a U.S.-Iran Real War Send Shivers to Investors
May 13, 2019
U.S. President Trump was particularly provocative over the weekend even by his own standards. Trade talks stalled with China, and he’s threatening a further escalation if China retaliates against the higher U.S. tariffs imposed last Friday. Tighter U.S. economic sanctions against Iran and a reinforced show of military force in the middle east threaten to […] More
Australian Dollar Sinks 1% against U.S. Counterpart
April 24, 2019
Australian dollar weakness, evidence of gloomier business conditions in Germany, and a review of Canadian monetary policy highlight today’s market and economic developments. Softer-than-expected consumer price inflation depressed Australia’s currency by spurring speculation that the Reserve Bank of Australia might cut its 1.5% Official Cash Rate further. Consumer prices were flat on quarter in 1Q, […] More
Time Running Out on Several Matters
February 11, 2019
The temporary suspension of the U.S. Federal Government shutdown ends on Friday. A deal between the White House and Congressional Democrats that meets President Trump’s insistence on border wall funding is not in sight. Perhaps he should bankroll the project out of his personal wealth or establish a Go-Fund-Me campaign to raise the money. Chinese […] More
Difficult Session in Asia but European Markets Are Higher
September 10, 2018
Share prices fell 1.4% in Hong Kong, 1.2% in China and India, 1.1% in Taiwan, 0.7% in New Zealand, and 0.4% in Indonesia and Singapore. The Japanese Nikkei rose only 0.3% despite a significant upward revision of second-quarter GDP growth in that economy. Equities in Europe, by contrast, have advanced in today’s session so far […] More
Equity Market Volatility Picks Up
February 8, 2018
It’s been another difficult day for equities. Today’s session started fine enough, with gains of 1.0% in India, 0.5% in South Korea where the Winter Olympics are getting under way, and 0.4% in Hong Kong. These up-moves balanced declines of 0.4% in Japan and 1.4% in China where a considerably smaller trade surplus for January […] More
Tax Bill Aftermath
December 21, 2017
The most prominent market reaction to the U.S. tax overhaul has been the rise in long-term interest rates, although the U.S. 10-year Treasury yield settled back two basis points in overnight futures trading. The 10-year gilt and 10-year German bund yields rose another 2 and 1 basis points. Congress is not trying to avert a […] More
Dollar Strengthens
September 26, 2017
The dollar rose overnight by 0.8% against the kiwi, 0.6% versus the Aussie dollar, 0.5% vis-a-vis the Swiss franc, 0.4% relative to the euro and 0.3% versus the yen, loonie and sterling. Stocks in the Pacific Rim dropped 0.8% in Taiwan, 0.5% in Indonesia, 0.3% in Japan and South Korea, and 0.2% in Australia but […] More
Better European Data, More Leaked Allegations on Trump, and a Terrorist Bomb Attack
May 23, 2017
The German business climate index compiled by the IFO Economic Institute increased 1.6 points in May to the highest level since German unification, a reading of 114.6. Current conditions went up 1.9 points, and expectations climbed 1.3 points in the latest month, prompting IFO officials to call the business mood euphoric and the pace of […] More
Stocks Fall and Dollar Rally Pauses
August 25, 2016
Today’s shocker came from the German IFO Institute’s monthly business climate index, which dived 2.1 points in August to a 6-month low of 106.2. Current conditions (down 2.0 points to a 7-month low) and business expectations (off 2.0 points to a 6-month trough) shared equally in this considerably weaker than expected outcome. Several data reports […] More
Sharply Weaker Yen
July 11, 2016
The yen lost 2.1% against the dollar, notching its biggest daily decline in 11-1/2 weeks. There has not been reported intervention, but Sunday’s upper house parliamentary election, won strongly by Prime Minister Abe’s LDP Party, clears the way for more aggressive macroeconomic stimulus there. Half of the 242 seats in Japan’s House of Councillors were […] More
