Bonds and Stocks
An Historic Closing for the Dow
January 5, 2011
Today’s 11,723 closing level in the Dow Jones Industrial Average matches the closing level on January 14, 2000. The index went downhill after that date, the culmination of a nearly 17-1/2 year bull run during which the DJIA soared 16.9% per annum on average from 777 at the close on August 12, 1982. In hindsight […] More
Central Bank Watch
Benchmark Indonesian Central Bank Rate Held at 6.5%
January 5, 2011
Unlike other Asian countries like China, Malaysia, India, South Korea and Thailand where central bank rates are already in uptrends, Bank Indonesia’s benchmark rate remains at its cyclical low. Three hundred basis points of easing were administered in nine consecutive moves from December 2008 through August 2009. The continuing decision to eschew a rate increase, […] More
Central Bank Watch
No Change in National Bank of Romania’s 6.25% Monetary Policy Rate
January 5, 2011
Romania’s monetary policy is hand-cuffed by the conflicting problems of disappointingly low economic growth, much higher-than-targeted CPI inflation, and deficient private-sector credit growth. Central bank officials implemented nine rate reductions from February 2009 to May 2010 totaling 400 basis points but are now maintaining a “prudent” wait-and-see stance. In a new released statement, monetary officials […] More
Deeper Analysis
U.S. and Ezone Service-Sector December PMIs Compared
January 5, 2011
The differential between last month’s U.S. non-manufacturing purchasing managers index of 57.1 and its euro area counterpart (54.2) favored America by the widest margin since February 2009. The U.S. index was 2.1 points better in December than in November; in quarterly average terms, such rose 2.5 points between the third and fourth quarters of 2010. […] More
New Overnight Developments Abroad - Daily Update
Dollar Stronger But Stocks and Bond Yields Fall
January 5, 2011
The dollar rose overnight by 0.6% against the euro, 0.5% relative to the Aussie dollar, and 0.3% versus the yen, Swissy, and kiwi. The dollar edged up 0.1% against the yen, shows no change against sterling and has softened 0.3% relative to the Chinese yuan. Investors continue to react to yesterday’s FOMC minutes, which presented […] More
