October in Review
November 2, 2014
Most long-term interest rates declined in October. Little change in three-month interest rates masked a widening polarization of monetary policies, as the Fed ended quantitative easing, the Bank of Japan augmented quantitative stimulus, and ECB officials remained publicly divided over whether to stimulate further and how to do so. The dollar strengthened most sharply against the yen and Canadian dollar, rose also versus European currencies, but hardly moved on balance relative to the Australian and New Zealand dollars. U.S. stocks recorded solid net advances, and so did the Japanese Nikkei. Equities in Europe and Canada fell, in contrast. Oil slumped more than 10%, and precious metals like gold declined, too.
| 10-Yr Yield | 09/30/14 | 10/31/15 | Chg vs End-Sep |
| U.S. | 2.50% | 2.33 | -17 Basis Points |
| Germany | 0.95% | 0.84% | -11 |
| Japan | 0.52% | 0.45% | -7 |
| U.K. | 2.42% | 2.25% | -17 |
| Canada | 2.15% | 2.15% | 0 |
| Switzerland | 0.46% | 0.58% | +12 |
| 3-month euros | |||
| U.S. | 0.23% | 0.23% | 0 Basis Points |
| Euroland | 0.06% | 0.06% | 0 |
| Japan | 0.12% | 0.11% | -1 |
| U.K. | 0.56% | 0.55% | -1 |
| Swiss | 0.01% | 0.01% | 0 |
| FX | Pct Chg in USD | ||
| EUR/USD | 1.2629 | 1.2533 | +0.8% |
| USD/JPY | 109.65 | 1.1233 | +2.4% |
| USD/CHF | 0.9547 | 0.9621 | +0.8% |
| GBP/USD | 1.6210 | 1.6000 | +1.3% |
| AUD/USD | 0.8752 | 0.8799 | -0.5% |
| NZD/USD | 0.7803 | 0.7793 | +0.1% |
| USD/CAD | 1.0965 | 1.1207 | +2.2% |
| USD/CNY | 6.1385 | 6.1127 | -0.4% |
| Equities | Chg vs End-Sep | ||
| S&P 500 | 1972 | 2018 | +2.3% |
| Nasdaq | 4493 | 4631 | +3.1% |
| Djia | 17043 | 17391 | +2.0% |
| Dax | 9474 | 9327 | -1.6% |
| Nikkei | 16174 | 16414 | +1.5% |
| Ftse | 6623 | 6546 | -1.2% |
| Canada TSE | 14961 | 14617 | -2.3% |
| Swiss SMI | 8835 | 8838 | +0.0% |
| Commodities | Chg from End-2Q | Chg vs End-Sep | |
| Oil, $ per barrel | 91.16 | 80.54 | -11.6% |
| Gold, $ per ounce | 1210.50 | 1171.10 | -3.3% |
Copyright Larry Greenberg 2014. All rights reserved. No secondary distribution without express permission.
Tags: bonds, commodities, equities, foreign exchange
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