Bonds and Stocks
January in Figures
January 29, 2010
Risk aversion staged a comeback at the start of 2010 and was manifested in a stronger yen and dollar, lower bond yields, weaker equity markets, and softer commodity prices. 10-Yr Yield 12/31/09 01/29/10 Chg vs End-Nov U.S. 3.83% 3.58% -25 Basis Points Germany 3.39% 3.20% -19 Japan 1.30% 1.32% +2 U.K. 4.02% 3.91% -11 Canada […] More
Foreign Exchange Insights and Next Week
Next Week
January 29, 2010
G-7 finance ministers and central bank chiefs begin a two-day meeting next Friday in Iqaluit, Canada, a town situated at roughly 60 degrees latitude in the Northwest Territories where the sun sets shortly after 15:00 and the outside temperature is expected to range from minus 20 to minus 26 degrees centigrade or minus 4 to […] More
Central Bank Watch
Reserve Bank of India Boosts Reserve Requirements But Leaves Key Interest Rates Alone
January 29, 2010
India’s cash reserve requirement of 5.0% is being raised to 5.5% on February 13 and further to 5.75% on February 27. The combined 75-bp increase surpassed analyst expectations and is meant to help manage the economic recovery, cut excess liquidity, anchor price expectations, and help align policy instruments with the evolving state of the economy […] More
Central Bank Watch
Colombian Monetary Policy Not Changed
January 29, 2010
The Central bank of Colombia, as analysts projected, left its intervention interest rate at 3.5% for a second straight meeting. Previously, the rate had been cut by 50 basis points each in June, September and November of 2009, and before that officials had implemented cuts of 100 bps in four consecutive months (February through May) […] More
Foreign Exchange Insights and Next Week
Dollar in Favor, Euro Not
January 29, 2010
Market confidence continues to build that 2010 is going to be a good year for the dollar. The U.S. currency clawed through several big figures this past week such as 1.40 per euro, 90 on the yen, 90 cents per Australian dollar, and $1.60 per pound sterling and 70 cents on the kiwi appear on […] More
Deeper Analysis
U.S. and Canadian GDP Growth
January 29, 2010
The U.S. economy advanced at a 5.7% annualized rate last quarter, more than a percentage point faster than consensus expectations and the quickest rate of growth since the third quarter of 2003. Net exports and inventories accounted for 67.7% of the quarter’s growth, and personal consumption furnished a further quarter of it. For all the […] More
New Overnight Developments Abroad - Daily Update
Month-End Flood of Economic Data
January 29, 2010
Markets remain worried about the Greek deficit but are showing somewhat less risk aversion today. The yen fell 0.4% against the dollar, which is otherwise weaker by 0.6% against the kiwi, 0.4% versus the Swiss franc, 0.2% relative to the Canadian dollar, and 0.1% against the euro. EUR/USD remains below $1.4000, while dollar/yen is hovering […] More
Deeper Analysis
Mixed Signals
January 28, 2010
The wire service headline observed that the Fed statement used the word recovery for the first time. Market behavior suggests a darker and more complex landscape. In less than six full trading sessions since closing at 10,725 on January 19, the Dow has dropped 6.0%, more than its 3.6% drop in the an equivalent interval […] More
Central Bank Watch
Filipino Key Overnight Borrowing Rate Left at 4.0%
January 28, 2010
As expected, Bangko Sentral ng Pilipinas made no changes in its 4.0% overnight borrowing or 6.0% overnight lending rates. However, in a phase-out of a liquidity-promoting action introduced 11 months ago, the peso rediscount window charge was restored to the overnight borrowing rate level from 50 basis points below such. A statement from monetary officials called […] More
New Overnight Developments Abroad - Daily Update
Obama Sets Goal of Doubling U.S. Exports in Five Years
January 28, 2010
Markets seem somewhat less risk averse, less fearful. Stocks recovered in Asia by 1.6% in Japan and Hong Kong, 1.8% in Taiwan, 1.0% in South Korea and Sri Lanka, 2.2% in Indonesia, and 1.9% in Singapore. Australian equities gained 0.6%, and in Europe, the Paris Cac, British Ftse, and German Dax are 0.5%, 0.4%, and […] More
