Bonds and Stocks
DJIA Crashes Through a Landmark
November 20, 2008
In Intra-day trading, the DOW today sunk below 7777. Below that level, the current bear market became the largest since the second world war, eclipsing a 45.1% drop from 1051.7 on January 11, 1973 to 577.6 on December 6, 1974. That period had embodied part of a deep recession caused by the first OPEC oil […] More
Currency Markets in the News
Labor Market Prospects Darken
November 20, 2008
Gloom about job prospects was mostly responsible for a five-point drop in Belgian consumer confidence to -22 in November from -17 in October. The unemployment component of the index worsened by 16 points from October and by 50 points from November 2007. Thanks to Germany, where unemployment dropped by 94K in the three months to […] More
Central Bank Watch
Swiss National Bank Slashes Target Rate 100 Bps After Unscheduled Meeting
November 20, 2008
The Swiss National Bank cut its point target on 3-month Libor interest rate by 100 basis points to 1.0%, the center of a 0.5-1.5% range. This was the third reduction between scheduled policy assessment meetings last September and next December. The SNB holds less frequent interest rate policy meetings than most central banks. Prior reductions […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Continuing Collapse of World Equities
November 20, 2008
Following yesterday’s tumble in U.S. share prices and in response to yen appreciation against all other currencies, the Nikkei fell 6.9%. Elsewhere in Asia, stocks dropped 6.7% in South Korea, 4.5% in Taiwan, 4.0% in Hong Kong, 3.7% in India, 3.6% in Thailand, 3.5% in the Philippines, 3.3% in Vietnam, and 3.1% in Singapore. Australian […] More
Central Bank Watch
Turkish Central Bank Rate Cut of 50 Bps Unpopular
November 20, 2008
The benchmark rate was cut unexpectedly to 16.25% from 16.75%. A released statement argued that disinflationary forces are falling into place and will produce a more rapid drop than anticipated previously. Consumer prices had climbed 12% in the year to October. Officials cited the global credit crunch, weaker domestic activity, and lower commodity prices. The […] More
Bonds and Stocks
Enough Already: Dow Loses Another 5.1%
November 19, 2008
The Dow Jones Industrial Average posted a 5+% daily loss today for the fifth time since September 29th and closed below 8000 for the first time since March 31, 2003. In the 11 trading days since the U.S. election, the DJIA has dropped 16.9%. If that pace were to continue over the 32 remaining trading […] More
Currency Markets in the News
On Japanese Growth, Population, and the Yen
November 19, 2008
Japan official estimates of GDP have earned a reputation for inaccuracy. Data measurement is a problem that officials have worked on with some success. But reported growth rates still occasionally produce outsized surprises and subsequent revisions. While gross domestic product measures the value of goods and services in a specific period of time from the […] More
Where Bank of England Policymakers Are Seeking Future Guidance
November 19, 2008
Minutes from the Monetary Policy Committee’s (MPC) early-November meeting candidly reveal that policymakers believed that they would ultimately need to cut rates by more than 200 basis points from the 4.5% level but were reluctant do more than 150 basis points until markets better understand their thinking and the factors upon which future near-term policy […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Emerging Market and Commodity-Sensitive Currencies Weaker
November 19, 2008
The dollar has gained 0.8% against the Australian dollar, 0.6% versus the kiwi and 0.4% against the Canadian dollar. The U.S. currency also advanced significantly against several emerging market currencies like the South Korean won , Indonesian rupiah, and Philippine peso. Risk aversion is high amid concern about global economic prospects and uncertainty about whether […] More
Bonds and Stocks
Inflation Dropping in the U.K., U.S. and Euroland
November 18, 2008
Falling food and energy costs have spearheaded a reversal of inflation that is being felt pretty universally. Key price indices were released today by Britain and the United States. British consumer price inflation for October fell to 4.5% from 5.2% in September, which was also the third-quarter and cyclical high. The 0.7 percentage point reduction […] More
