New Overnight Developments Abroad - Daily Update
Stronger Yen and Sharply Lower Share Prices
May 23, 2012
Equities have plunged 2.0% in Japan, 1.8% in Taiwan, 1.5% in Singapore, 1.3% in Australia and Hong Kong, 1.1% in South Korea, 1.0% in Indonesia, 0.6% in India and New Zealand and 0.4% in China. In Europe, mounting fear surrounding Greece’s options saw stocks drop by 2.2% in France and Spain, 3.0% in Italy, 2.0% […] More
Foreign Exchange Insights and Next Week
Next Week
May 18, 2012
The summit of G8 leaders in Maryland winds up on Saturday, May 19. An EU summit is scheduled for Wednesday, the same day that the OECD Economic Outlook will be published and that minutes from the Bank of England early-May meeting are being released. Some of the central bankers with public appearances include ECB President […] More
Central Bank Watch
Chile
May 18, 2012
Officials at the Central Bank of Chile did not change the 5.0% monetary policy rate. This was the fourth consecutive monthly meeting to conclude with a decision of no interest rate change. From a Great Recession low of 0.50%, 275 basis points of increase were implemented in 2010 and a further 200 bps of increase […] More
Foreign Exchange Insights and Next Week
Big Storm Coming and No Place to Hide
May 18, 2012
The euro’s increasing vulnerability is the main topic of currency market chatter. It has taken 2.5 years for the euro to depreciate about 23 U.S. cents or some 15%. Over this span, a familiar sequence of crisis intensification, slow policy response, and eventual announcement of measures to preserve the euro has kicked the problem down […] More
New Overnight Developments Abroad - Daily Update
More Angst about Europe as G8 Leaders Gather at Camp David for Annual Summit
May 18, 2012
Pacific Basin equities took another deep dive, falling 3.0% in Japan, 2.7% in The Philippines and Australia, 3.4% in South Korea, 2.8% in Taiwan, 1.6% in Thailand and Indonesia, 1.5% in China and Singapore, and 1.3% in Hong Kong. In the epicenter of worry, stock prices are down 2.1% in Stockholm, 1.0% in London, but […] More
New Overnight Developments Abroad - Daily Update
Fresh Decline in European Share Prices after Better Tone in Asia
May 17, 2012
Asian markets were supported by the FOMC minutes and Japanese first-quarter GDP. Equities around the Pacific Rim rose 3.1% in The Philippines, 1.7% in Taiwan, 1.5% in China, and 0.9% in Japan. FOMC minutes released Wednesday indicated a preference not to stimulate further yet but a willingness to do so if outlook deteriorates appreciably. Japanese […] More
Central Bank Watch
Iceland’s Interest Rate Hike
May 16, 2012
Many analysts were surprised by today’s announced increase of the Bank of Iceland’s 7-day collateralized rate to 5.5%. The three prior increases on March 21, November 2, and August 17, 2011 were by 25 basis points, and the escalating euro debt crisis dissuaded some from expecting any Icelandic move now. A statement on the Sedlabanki […] More
New Overnight Developments Abroad - Daily Update
Pacific Rim Share Prices Clobbered on Escalating Greek Crisis
May 16, 2012
Equities fell 3.2% in Hong Kong, 3.1% in South Korea, 2.4% in Australia, 2.2% in Taiwan, 1.8% in India, 1.6% in Singapore, Indonesia and China, and 1.1% in Japan. The British Ftse and German Dax have lost 0.7% and 0.6%, but the Paris Cac is 0.7% firmer. Sterling reacted poorly to the Bank of England […] More
New Overnight Developments Abroad - Daily Update
Last Effort to Avert Greek Election Do-over in June
May 15, 2012
Released European data overnight were mixed. The United States releases many economic indicators as well today. German Chancellor Merkel and French President Hollande meet today, and there is a meeting too of EU finance ministers. The dollar has lost 0.3% against the Australian dollar, 0.2% versus the loonie and 0.1% against the yuan, euro and […] More
New Overnight Developments Abroad - Daily Update
Rising Possibility of Greece Leaving EMU Sends Euro to Multi-Month Lows as Stocks Also Plunge
May 14, 2012
The euro fell to its weakest dollar level ($1.2861) since January 19 and lowest yen value (102.94) since February 16. Share prices have tumbled 2.4% in Paris, 2.2% in Frankfurt and 1.8% in London. Ten-year German bund and British gilt yields sank by seven and nine basis points. The 10-year Treasury futures suggests an opening […] More
