Deeper Analysis
February in Figures
February 29, 2012
February was a replay of January in certain respects, but there will also some notable market differences between the two months. The similarities involved a weaker dollar, stronger share prices and pinned short-term interest rates. One notable shift was the very weak yen in February compared to January when it merely shadowed the dollar. This […] More
Central Bank Watch
When Humphrey Met Sadie and What the Fed Wants Us to Know
February 29, 2012
Federal Reserve Chairman Ben Bernanke gave Humphrey Hawkins testimony before the House Financial Services Committee on this Sadie Hawkins Day of 2012. The dual references to Hawkins, one for the testimony and the other for the day, are a curious happenstance. The testimony is called Humphrey Hawkins for the two sponsors of the 1977 Full […] More
Deeper Analysis
Market Movements since February 29, 2008
February 29, 2012
The dollar is 22.4% weaker against the yen but 13.2% stronger relative to the euro since the last Sadie Hawkins Day. Ten-year sovereign debt yields have declined by 204 basis points in Germany, 167 bps in the United States, and 40 bps in Japan. The 30-year Treasury yields has dropped 142 basis points. Oil prices […] More
New Overnight Developments Abroad - Daily Update
Sadie Hawkins Day Full of News
February 29, 2012
Mitt Romney won the Michigan primary by three percentage points, but delegates are being awarded proportionately for that state. His margin of victory in the Arizona primary surpassed 20 percentage points. The ECB’s second 3-year LTRO pumped EUR 529.5 billion of cheap 1% cash into the euro area banking system, topping the EUR 489 billion […] More
Deeper Analysis
Mixed U.S. Data Received Positively
February 28, 2012
Despite some weaker-than-expected data released today, U.S. share prices are higher, with the Dow at this writing trading above the key 13K level. A 4.0% dive in durable goods orders was the largest drop in three years, but such followed back-to-back increases of 4.2% in November and 3.2% in December and left January’s level of […] More
Central Bank Watch
Hungarian Monetary Policy Left Unchanged Again
February 28, 2012
A statement from the Monetary Council of Magyar Nemzeti Bank after leaving its benchmark base rate unchanged for a second straight month stressed the need to counter uncertainty and market volatility: "High volatility of financial markets over the recent period continues to warrant a cautious policy stance." Like the January meeting in which a vote […] More
New Overnight Developments Abroad - Daily Update
More Hopeful Market Mood than Yesterday
February 28, 2012
Equities in the Pacific Rim rose by 1.7% in Hong Kong, 1.6% in India, 1.1% in Indonesia, 1.0% in Thailand, 0.9% in Japan, 0.8% in Singapore and 0.2% in New Zealand, but the Australian bourse dipped 0.1%. In Europe, the German Dax, Paris Cac and British Ftse have firmed 0.5%, 0.4%, and 0.2%. The dollar […] More
Central Bank Watch
No Change This Month in Israeli Benchmark Central Bank Rate
February 27, 2012
The Bank of Israel’s key interest rate has been kept at 2.5% for the coming month. At previous monthly meetings, such was cut by 25 basis points in late January, left unchanged in December, reduced 25 bps in late November, held steady at 3% in October and cut a first time back in September. A […] More
Central Bank Watch
Nine Central Bank Rate Hikes Within a Year in Colombia
February 27, 2012
The Central Bank of the Republic of Colombia on February 24 announced a 25-basis point increase of its overnight lending rate, which now becomes 5.25%. The first of nine such hikes of equal size was made on February 28, 2011. Subsequent moves were done in March, April, May, June, July and November of 2011 as […] More
New Overnight Developments Abroad - Daily Update
A Substantial Downward Break in Share Prices
February 27, 2012
Equities dropped by 2.7% in India, 1.9% in The Philippines, 1.6% in Sri Lanka, 1.4% in South Korea, 1.1% in Singapore, 1.0% in Thailand, and 0.9% in Australia, Indonesia and Hong Kong. In Europe, the British Ftse has so far lost 1.5%, and the German Dax and Paris Cac show declines of 1.2%. Japan’s Nikkei […] More
