Deeper Analysis
June PMIs: A Much Better Month for the United States Than Euroland
July 6, 2011
The U.S. minus Ezone purchasing managers differential among manufacturers swung from negative 1.1 in May to +3.3 in June, and the spread between their respective service-sector PMI readings rose a full point from negative 1.4 in May to minus 0.4 last month. All four PMI levels in June, shown in the bottom row of the […] More
Central Bank Watch
People’s Bank of China
July 6, 2011
The Chinese one-year lending and deposit rates have been lifted for the fifth time since October 19, 2010. Each increase amounted to 25 basis points. From cyclical lows maintained December 2008 until October 2010 of 5.31% and 2.25%, respectively, the key central bank rates have now climbed back 125 basis points to 6.56% and 3.50%. […] More
Central Bank Watch
Polish Monetary Policy Paused
July 6, 2011
The Narodowy Bank’s Monetary Policy Council left its 7-day reference rate unchanged at 4.5% following verbal hints over the past month that further increases now were unnecessary. The rate had been raised by 25 basis points each on January 19, April 5, May 11, and June 8. At the March meeting, officials also had decided […] More
New Overnight Developments Abroad - Daily Update
Intensified Worries about Portugal, Ireland and Spain
July 6, 2011
Just when the peripheral debt crisis in Europe appeared to be ebbing, a downgrade by Moody’s of Portuguese sovereign debt to junk status (Ba2) has stirred that pot of fear anew. Peripheral bond spreads versus Germany have widened, and the euro is lower. Another usual victim of risk aversion, commodity-sensitive currencies, have been surprisingly resilient. […] More
