Bonds and Stocks
Uh Oh! Equity Slide Poses New Risk to World Recovery
June 22, 2009
The world economy performed better in the second quarter of 2009 than in either of the prior two quarters, inspiring hope that a recovery will begin to emerge in the second half of this year. Some analysts in fact are claiming that the U.S. business cycle hit bottom last month. Other regions like Europe will […] More
Central Bank Watch
Israeli Central Bank Rate Left at 0.50%
June 22, 2009
For a third straight time, the Bank of Israel made no further change in its key policy rate, which previously was lowered eight times from October through March 23rd by 375 basis points in total to 0.5%. CPI inflation of 2.8% in now within the 1-3% target range, and real GDP continues to contract, only […] More
Central Bank Watch
Hungarian Base Rate Kept at 9.5%
June 22, 2009
Magyar Nemzeti Bank retained a 9.5% policy rate for a fifth consecutive monthly meeting. Four cuts of 50 basis points (one each in November and January and two in December) did not offset a 300-basis point hike last October as a term to receiving an IMF-led aid package. Hungary is in a deep recession, with […] More
Commodity-Sensitive Currencies Stronger Than Officials Desire
June 22, 2009
Prime Minister Key of New Zealand today became the latest official with a commodity-sensitive currency to warn about damage from recent excessive appreciation in that currency, asserting that “if the exchange rate was to rise too rapidly, that would run the risk of derailing the recovery process.” Bank of Canada Governor Mark Carney had lodged […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad: Markets React to Revised World Bank Forecasts
June 22, 2009
European stocks and commodities fell while Treasury prices rose in reaction to downwardly revised growth forecasts released by the World Bank. Unrest in Iran persists. Oil and gold have eased 2.0% to $68.16/barrel and 1.3% to $924.30/ounce. 10-year JGB yields unchanged. The Dax and Ftse are off 1.1%, while the Cac40 has fallen 1.3%. Asian […] More
