Japanese machinery orders

China Situation Better, Greek Situation Still Ominous

July 9, 2015

The Shanghai Composite index of Chinese share prices jumped 5.8%, as officials imposed even more restrictions to prevent big sale orders and short selling in general.  Elsewhere in the Pacific Rim, stocks rose 4.5% in Hong Kong but fell 0.7% in Indonesia and Taiwan, 0.5% in New Zealand and Singapore and 0.4% in India.  The […] More

Across-the-Board Dollar Gain in Absence of Meaningful Data News

May 18, 2015

Relative to last week’s closing levels, the dollar has risen 1.2% against the kiwi, 0.9% relative to the loonie, 0.8% vis-a-vis the euro, 0.7% versus the Swiss franc, 0.6% against the Australian dollar , 0.4% versus the yen and 0.3% relative to sterling. The DOW opened comparatively steady, but share prices are down by 1.9% in […] More

Diving Chinese Trade Surplus Steals the Spotlight

April 13, 2015

China’s $3.08 billion trade surplus last month was 95% smaller than the average of $60.4 billion over the six prior months and the weakest monthly result since February 2014.  Exports recorded a 15% on-year drop instead of rising 10% as analysts were assuming.  Imports fell by 12.7% from the year-earlier level. There were also several bits […] More

Continuing Euro Support above $1.1300

February 12, 2015

The euro rose 0.2% against the dollar.  Despite persistent concerns about Grexit — Greece abandoning the common European currency or being thrown out by other members — the euro, now at $1.1342, repeatedly finds support whenever it dips under $1.13.  Greek debt talks have made very little progress.  They will resume next Monday, with creditors […] More

Swiss National Bank Lights a Firestorm and India’s Central Bank Also Surprises

January 15, 2015

There’s been a whole lot of shaking going on in world financial markets overnight. Dollar/Swissie plunged 14.2%, and Swiss equities have slumped 9.5%.  The trigger for these big moves was the Swiss National Bank’s abandonment of its 1.2000 franc per euro ceiling, which was imposed initially on September 6, 2011.  The cost of intervention was […] 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

Ukraine, China, Scortland and Fed Command Spotlight

September 10, 2014

A general cease fire is said to be still holding in the Ukraine despite sporadic breaches. Chinese Premier Li made reassuring remarks that policy changes are coming to buttress growth. The independence vote by Scots on September 18th appears close.  Opinion polls have given a slight edge to those favoring secession. A report is circulating […] More

More Weak Data Creating New Doubts about Future Monetary Policy

August 14, 2014

The dollar is unchanged today against the yen, sterling and yuan.  It has eased 0.5% against the kiwi, 0.3% relative to the Swiss franc, 0.2% vis-a-vis the euro and loonie and 0.1% against the Australian dollar. The ten-year Treasury yield has slipped below 2.40%, a drop of three basis points to 2.39%.  The ten-year British […] More

Return to Risk-Off Market Psychology

July 10, 2014

European equities and bond prices were sold off pretty hard.  The yen has firmed.  Gold spiked higher, and oil continues to slide. The catalyst for this fresh wave of risk aversion was the failure of the parent company of Portugals Espirito Santo Financial to make a debt payment, but there are other causes, one being […] More

New Zealand Interest Rate Hike and Soft Chinese Data

March 13, 2014

New Zealand became the first advanced economy to lift its benchmark interest rate.  The central bank, RBNZ, raised the Official Cash Rate to 2.75% from 2.5% and signaled that more increases will be forthcoming over the coming two years.  The action sent the kiwi to a new trade-weighted high. Chinese industrial production growth in January-February […] More