Deeper Analysis
U.S. Minus Euroland Services Spread Narrowed Last Month
May 5, 2010
Implied activity in the United States service sector remained brisk last month but failed to quicken further. This allowed it to be overtaken marginally by Euroland’s index and caused the spread between the sum of the services and manufacturing PMIs, depicted below in the right-most column to drop to 2.6 from 4.3. The U.S. subindex […] More
Central Bank Watch
A Third Rate Hike in Norway But the First of 2010
May 5, 2010
The Norges Bank implemented a third 25-basis point rise of its key central bank policy rate to 2.0%. Analysts had been split over whether this would be done today, and officials released a statement that admitted that a decision to leave the rate at 1.75% had also been considered. The previous rate increase was made […] More
Central Bank Watch
Bank Indonesia Benchmark Interest Rate Holding at 6.5%
May 5, 2010
Nine consecutive monthly rate reductions from December 2008 to August 2009 totaled 300 basis points, and now nine months have passed without a change in the rate’s 6.5% level. A released statement after today’s monthly meeting speaks optimistically about global, regional, and Indonesian growth prospects but gives no hint of a readiness to start raising […] More
Central Bank Watch
Iceland Gets Third Interest Rate Cut of 2010
May 5, 2010
Sedlandi Bank, Iceland’s central bank, has implemented another 50-basis point reduction of the seven-day collateralized lending rate to 8.5%. Prior cuts of the same amount were announced on March 17 and January 27. An IMF aid package in the autumn of 2008 mandated a sharp increase in the key rate to 18%, but last year […] More
New Overnight Developments Abroad - Daily Update
Asian Equities Falter
May 5, 2010
Stocks declined 3.8% in Indonesia, 3.5% in the Philippines, 3.0% in Taiwan, 2.1% in Hong Kong, 1.4% in Singapore, 1.5% in New Zealand and 1.3% in Australia. Japan observed the final holiday of Golden Week, Children’s Day. China’s CSI index bucked the trend, firming 0.6%. In Europe, stocks fell sharply in Spain and Portugal, but […] More
