Bonds and Stocks
Mid-Day Reflections on Joint Central Bank Action
October 8, 2008
Investors seem unconvinced that they no longer need to fear the market’s collective fear. The Dow Jones Industrial Average remains extremely erratic. It was down more than 200 points at noon EDT (16:00 GMT) but marginally in the black 85 minutes later. An eventual decline to at least 7,780, which would match the 45% bear […] More
Central Bank Watch
Danish National Bank Leaves Rates Unchanged
October 8, 2008
The Danmarks NationalBank did not match the ECB rate cut, departing from its pattern of matching all eight ECB rate increases between December 2005 and June 2007. Denmark does not run an independent monetary policy. Although not a member of the European Monetary Union, Denmark instead targets a fixed parity of the krone against the […] More
Central Bank Watch
There It Is: A Coordinated Rate Cut by Seven Monetary Authorities
October 8, 2008
Rate cuts of 50 basis points were announced at 11:00 GMT jointly by the Fed, ECB, Bank of England (which will not meet tomorrow as scheduled), Swedish Riksbank, and Bank of Canada. The new benchmark rates at these respective central banks are 1.5%, 3.75%, 4.5%, 4.25%, and 2.5%. In addition, the Swiss National Bank sliced […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Pandemonium
October 8, 2008
It’s been the worst day yet for equities: Japan -9.4%, the worst daily plunge since the 1987 crash. Indonesia -10.4%. Hong Kong -8.2%. Thailand -6.9%. Taiwan -5.8%. South Korea -5.1%. The Philippines -4.8%. india -3.4%. Vietnam -3.1%. Australia -5.0%. German Dax -6.0%. Italy -6.0%. British Ftse -4.1%. Paris Cac -5.1%. Britain unveiled a comprehensive financial […] More
