Bonds and Stocks
U.S. Stocks and the Dollar Before and After Lehman
November 12, 2008
From the peak early in 4Q07, the Dow Jones Industrial Average and the Nasdaq have lost 41.5% and 47.6% of their values. Over that period, the trade-weighted dollar rose 6.0%. In the first 11 months of that period up to the failure of Lehman, the DJIA and Nasdaq fell by 19.4% and 20.9%, or at […] More
Central Bank Watch
The Bank of England Chimes In
November 12, 2008
The Bank of England, like Australia’s central bank, has reduced its key rate by 200 basis points since September. In fact, the BOE accomplished such in just two steps of 50 basis points in October and 150 basis points to 3.0% last week. There had been three previous cuts of 25 basis points each but […] More
Currency Markets in the News
Central Banks Explain Radical Policy Shifts: First Australia
November 12, 2008
The Reserve Bank of Australia was hesitant about easing monetary policy with inflation still cresting. That central bank made its final two hikes during 1Q08 of a multi-year, 300-basis point tightening, and the resulting 7.25% cash rate was maintained for a half-year, as officials warned that a rising terms of trade and fiscal package would […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Commodities Keep Weakening
November 12, 2008
Stocks fell in Asia but rose in Europe. Nikkei -1.3%. Thailand -1.5%. Hong Kong and Indonesia -0.7%. Australia -0.9%. The British Ftse is trading 1.2% higher, and the German Dax and Paris Cac show gains of 0.5% and 0.7%. Copper, oil and gold have fallen by 5.9%, 1.5%, and 0.4%. Oil is below $59/barrel. Sterling […] More
Currency Markets in the News
Hope and Change Meet Reality and Continuity
November 12, 2008
President-elect Barack Obama ran on on platform of hope and change. During the first week of the Obama presidency’s 11-week gestation period, these lofty ambitions ran into a wall of economic gloom, continuing asset liquidation, and intensified random violence in the Middle East. The U.S. October labor report was simply awful. A who’s who of […] More
