Bonds and Stocks
April Markets in Figures: A Story of Subsiding Risk Aversion
April 30, 2009
10-Yr Yield 03/31/09 04/30/09 Chg vs End-March U.S. 2.68% 3.11% +43 Basis Points Germany 2.99% 3.18% +19 Japan 1.35% 1.43% +8 U.K. 3.17% 3.50% +33 Canada 2.78% 3.09% +31 3-month euros U.S. 1.19% 1.02% -17 Basis Points Euroland 1.51% 1.36% -15 Japan 0.60% 0.55% -5 U.K. 1.65% 1.45% -20 Canada 1.00% 0.85% […] More
Central Bank Watch
Colombian Key Interest Rate Reduced to 6% from 7%
April 30, 2009
The Central Bank of the Republic of Colombia implemented its fifth rate cut since December, bringing the cumulative decline to 400 basis points. Colombian GDP fell 4.1% saar in 4Q08 and probably met the layman’s condition for recession by contracting again last quarter. At 6.0%, the central bank interest rate is roughly on a par […] More
Currency Markets in the News
Green Shoots
April 30, 2009
Every day seemingly brings at least one pleasant data surprise and often more than one. Portents of an end to the deepest and longest post-WW2 recession are not limited to one or two countries, but rather spread around the world’s regions and range of rich and poorer economies. New U.S. claims for unemployment insurance averaged […] More
Central Bank Watch
Dovish Statement From Reserve Bank of New Zealand
April 30, 2009
While cutting their cash rate by the expected 50-basis point increment, New Zealand monetary officials surprised market observers in two ways. Like the Bank of Canada earlier this month, they pledged not to raise the benchmark rate above its new level until at least the second half of 2010. They also left open the door […] More
Central Bank Watch
100 Basis Point Rate Cut in South Africa
April 30, 2009
The Reserve Bank of South Africa cut its benchmark policy interest rate to 8.5% from 8.5%. The rate has been reduced from 12% at the start of December. A statement released by monetary authorities projects in-target inflation of 5.4% by 4Q10 versus 8.5% currently because of the “severe synchronized downturn in international and domestic economic […] More
Central Bank Watch
Bank of Japan Unveils New Quarterly Forecasts
April 30, 2009
The Bank of Japan revised down its growth and inflation forecasts but not by more than had been expected. Monetary officials anticipate a flattening contraction of growth in April-September and the onset of a recovery thereafter during the second half of fiscal 2009. An output gap, that is excessive aggregate supply, persists for the entire […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Equity Rally Extended
April 30, 2009
Stocks rose 3.9% in Japan, 3.8% in Hong Kong and Singapore, 4.8% in Indonesia, 3.7% in India, 2.4% in Malaysia, 2.1% in The Philippines, and 2.3% in Australia. In Europe, the German Dax, British Ftse, and Paris Cac have traded up 2.8%, 2.5%, and 2.0%. Less risk aversion also reflected in dollar movements: up 0.5% […] More
Central Bank Watch
Brazilian Selic Rate Cut to 10.25% from 11.25%
April 30, 2009
The Central Bank of Brazil has implemented its third key rate cut of 2009, a reduction of 100 basis points following cuts of 150 bps on March 12 and 100 bps on January 22nd. The magnitude of the rate cut matched the most common street expectation. GDP plunged 13.6% at a seasonally adjusted annual rate […] More
Central Bank Watch
FOMC Statement Predictable and Undramatic
April 29, 2009
FOMC officials did not introduce any new measures, kept a target Fed funds range of zero to 0.25%, reiterated the belief that such would remain at an “exceptionally low level for an extended period,” observed that “the pace of contraction appears to be somewhat slower” since the March 18th meeting, but concluded that “economic activity […] More
Central Bank Watch
Vital Market Signs At Earlier FOMC Meetings
April 29, 2009
EUR/$ $/JPY 10Y, % DJIA Oil, $ 06/30/04 1.2173 109.44 4.63 10396 37.95 06/30/05 1.2090 110.89 3.96 10370 57.00 06/29/06 1.2527 116.07 5.20 11077 73.41 06/28/07 1.3452 123.17 5.10 13456 69.82 08/07/07 1.3749 118.55 4.73 13510 72.27 09/18/07 1.3888 115.75 4.51 13475 81.42 10/31/07 1.4458 115.28 4.42 13873 93.59 12/11/07 1.4682 111.49 4.11 13645 […] More
