New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Better-Than-Expected Euro Area PMI Readings
August 21, 2009
Three main themes today: Sharply improved French, German, and Euroland PMI scores in August according to preliminary reports. Reports that Beijing officials plan tighter capital reserve requirements for banks to curb lending spree and rise of stock prices. Investors awaiting Bernanke speech KC Fed Symposium in Jackson Hole, Wy. Also the release of U.S. existing […] More
Central Bank Watch
Why the Bank of England Did Not Respond to Green Shoots
August 20, 2009
The decision by British monetary authorities earlier this month to boost quantitative easing by 40% or Gbp 50 billion to total asset purchases of Gbp 175 billion was the biggest central bank surprise so far this month. Minutes from that meeting published this week revealed an even greater surprise than realized initially. Three of the […] More
Larry's Blog
U.S. Labor Market Strain Persists
August 20, 2009
576K workers filed initial jobless claims in the week to August 15, 26K more than expected. That was the biggest overshoot relative to forecasts in this layoff rate proxy in at least two months. The four-week average of new jobless claims rose 4.25K to 570K, highest since the week to July 3. This series peaked […] More
Central Bank Watch
Philippine Monetary Policy on Hold
August 20, 2009
Previously Bangko Sentral ng Pilipinas had cut its key interest rates by 200 basis points in six steps from December 18 to July 9, such that the overnight lending rate was at6.0% and the overnight borrowing rate was at 4.0%. But as expected, officials declared a “pause” in that easing after today’s meeting in order […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Chinese Equities Rebound, Dollar Steady
August 20, 2009
The Chinese CSI index advanced 4.3%, inspired by a strong earnings estimate from a stock analyst and a prediction that monetary policy will remain accommodative. Most other bourses are higher too: Indonesia +2.2%, India +1.4%, Singapore +1.5%, Hong Kong +1.9%, South Korea +2.0%, France +1.5%, Britain +1.4%, and Germany also +1.4%. The dollar is unchanged […] More
Canadian CPI Inflation
August 19, 2009
Consumer prices declined 0.3% between June and July and by 0.9% over the past twelve months. The on-year change represents a deeper drop after June’s minus 0.3% and a 4.4 percentage point swing from an increase of 3.5% in the year to August 2008. Over the past year, energy prices tumbled 23.4%, food rose 5.0% […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Plunge of Chinese Equities Fanning Risk Aversion
August 19, 2009
The Shanghai Composite equity index fell 4.3%, at one point showing a 20% cumulative drop from its 2009 peak, i.e. the condition for declaring a bear market. China’s CSI 300 closed down 5.0% on the day. Elsewhere in Asia, stocks dropped 2.5% in Indonesia, 1.4% in Thailand and India, 1.8% in Singapore, 1.7% in Hong […] More
Central Bank Watch
50-Basis Point Turkish Rate Cut Meets Expectations
August 18, 2009
The Central Bank of the Republic of Turkey cut its overnight borrowing and lending rates by 50 basis points each to 7.75% and 10.25% and reiterated the belief that further measured cuts will likely be made in the absence of a robust recovery. This was the fourth consecutive month with a cut of 50 basis […] More
Lower U.S. Inflation
August 18, 2009
Producer prices fell 6.8% in the year to July, a 16.7 percentage point turnaround from its 9.9% rise during the year to July 2008. Core PPI inflation slowed to 2.6% from 3.5% a year earlier. U.S. consumer prices declined 2.1% in the latest statement year, a 7.7 percentage point drop from the rise of 5.6% […] More
Canadian Bonds and Stocks Attracting Foreign Capital
August 18, 2009
The Canadian dollar advanced 8.5% against its U.S. counterpart in the second quarter and has appreciated by a further 4.9% since mid-year. Foreigners bought C$ 30.7 billion of Canadian fixed income securities and C$ 8.6 billion of Canadian equities last quarter. Those net purchases surpassed C$ 4.1 billion of Canadian net buying of foreign equities […] More
