Central Bank Watch
ECB Preview
June 5, 2012
The June meeting of the ECB Governing Council is being held on Wednesday rather than the customary Thursday. This is an important meeting, coming a day after Group of Seven finance ministers are holding an impromptu discussion about how to defuse the latest turn for the worse in Europe’s banking and debt crisis and amid […] More
Deeper Analysis
PMIs Compared: U.S. Retains Commanding Advantage Versus Euroland
June 5, 2012
The U.S. services PMI index in May was 0.2 points higher than in April despite a 3.4-point drop in the jobs component that was consistent with the weaker-than-anticipated U.S. labor force survey released this past Friday. The sales and orders components of the index respectively climbed 1.0 and 2.0 points last month, and the inflation […] More
Central Bank Watch
Bank of Canada: No Rate Change Expected or Delivered
June 5, 2012
Canada’s 1.0% overnight money rate target was left unchanged as expected. That said, the statement released by officials presents some interesting content. The prior statement in mid-April had reintroduced for the first time in nine months a hint of tightening to come. Today’s comment sticks to that view: “To the extent that the economic expansion […] More
Central Bank Watch
Reserve Bank of Australia’s Cash Rate Cut Again — This Time by 25 Basis Points
June 5, 2012
At today’s meeting, the Board judged that, with modest domestic growth and a weaker and more uncertain international environment, the outlook for inflation afforded scope for a more accommodative stance of monetary policy. So concluded a statement from Reserve Bank of Australia Governor Stevens that defends today’s 25-bp cut of the Official Cash Rate to […] More
New Overnight Developments Abroad - Daily Update
Awaiting Outcome of G7 Finance Ministers Conference Call
June 5, 2012
At this hour, top treasury officials from the Group of Seven nations (U.S., Japan, Germany, France, Italy, Canada, and Britain) are holding an emergency phone conference to discuss the euro crisis and Spanish banking system. Some kind of statement seems likely to be released. U.K. markets remain closed for the Queen’s diamond jubilee celebration. On […] More
