Bonds and Stocks
September in Figures
September 30, 2009
During the past month, interest rates fell modestly for the most part, sterling and the dollar weakened, equities strengthened except in Japan, and gold advanced. Barriers of JPY/USD 90, GBP/USD 1.60, and $1000 on gold were broken. Oil closed not far from its end-August level, and use of the dollar to fund carry trades become […] More
Central Bank Watch
No Change in Poland's Central Bank Reference Rate
September 30, 2009
For a third consecutive monthly meeting, officials at the National Bank of Poland left their 7-day policy reference rate at 3.5%. The rate had been 6.0% in October 2008 but was cut by 25 basis points on November 26 and by 75 bps each on December 23 and January 27. Three final cuts of 25 […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Dollar Higher on Final Day of Quarter
September 30, 2009
The dollar rose 1.4% against the Australian dollar, 1.2% versus the Canadian dollar, 1.1% against the euro, 1.0% against the kiwi, 0.7% against the Swiss franc and 0.6% relative to the yen. Stocks in the Pacific Rim rose 1.1% in China and Taiwan, 1.6% in India, and 1.0% in Indonesia but fell 0.3% in Hong […] More
Larry's Blog
A Distrustful Society
September 29, 2009
When a deep hole is dug, it takes sustained confidence and courage to navigate a way out. Accomplishing such a turnaround is doubly hard in an age of distrust. Unfortunately, widespread mutual distrust is a sign of our times within countries and between them, and the longer problems fester, the more deeply layered the distrust […] More
British Economic Woes
September 29, 2009
The final second-quarter British national income accounts were published today. Real GDP contracted 2.3% at an annualized rate, more than twice as much as the drop in U.S. growth and about four times greater than Euroland’s slide. Business investment plunged 19.3%, exports sank 5.5% and household consumption fell by 2.4%. Productive output, service sector output […] More
Central Bank Watch
Central Bank Rate Cuts in Russia and Romania
September 29, 2009
Following Hungary’s 50-basis point rate cut on Monday, similar-sized reduction were implemented today in the Russian refinancing rate to 10.0% and the Romanian monetary policy rate to 8.0%. The Central Bank of the Russian Federation had implemented six earlier rate cuts, two by 25 bps in mid-September and early August and one each of 50 […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Dollar Higher Against Euro, Yen, and Swiss Franc
September 29, 2009
Despite the weekend victory of the center-right in Germany’s election on Sunday, the dollar is 0.3% higher against the euro. The greenback also gained 0.6% against the Swissy, 0.3% relative to the yen, and 0.1% against the Canadian dollar, but it is 0.1% lower versus the kiwi and Aussie dollar. The 10-year JGB is unchanged […] More
New Overnight Developments Abroad - Daily Update
Monday's Developments
September 28, 2009
The dollar hit an eight-month low of 88.22 yen but was as strong as 1.5766 per pound sterling during Monday. At the close however, it was up 0.5% against the euro, more than its net 0.3% gain against sterling, and it had lost just 0.1% against the yen. The Nikkei lost 2.5%, but the DOW […] More
Central Bank Watch
Hungarian Central Bank Rate Reduced 50 Basis points
September 28, 2009
The Magyar Nemzeti Bank lowered its two-week bill rate for banks to 7.5% from 8.0%. A 50-basis point cut had been anticipated and leaves the key rate at its lowest level since September 2007. The rate had previously been reduced by 50 bps on August 24, 100 bps on July 27, 50 bps on January […] More
Central Bank Watch
Unexpected Colombian Rate Cut
September 25, 2009
The Bank of the Republic surprised analysts today with a 50-basis point reduction of its key interest rate to 4.0%. The previous two monthly policy meetings on August 28 and July 24 had result in no further drop in rates. The rate was 9.5% at the beginning of 2009, but was lower by 50 bps […] More
