Deeper Analysis
U.S. Factory PMI Drops to 77-Month Low While Eurozone Counterpart Hits 19-Month High
December 1, 2015
A further sharp appreciation of the dollar against the euro in November was probably partly responsible for the divergent trends of the U.S. and Eurozone manufacturing purchasing manager indices. The rightmost column below are monthly averages of the EUR/USD relationship. The U.S. PMI fell 1.5 points and was below the 50 no change level for […] More
Central Bank Watch
Reserve Bank of India
December 1, 2015
Monetary policy was not changed at this week’s review. The repo and reverse repos remain at 6.75% and 5.75%. Policy easing was front-loaded earlier this year, with cuts of 25 basis points in January, May and June, followed with a greater-than-anticipated 50 bps in September. A released statement makes these points: Front-loaded monetary support was […] More
Central Bank Watch
Australian Central Bank Interest Rate Stays at Record Low of 2.0%
December 1, 2015
It’s been a half year since the official cash rate was last cut. In addition to that 25-basis point cut in May, the OCR was reduced by a similar amount in February and before that from a high of 4.75% prior to November 2011 to 2.5% by August 2013. A statement released after this month’s […] More
New Overnight Developments Abroad - Daily Update
A U.S. PMI Clunker
December 1, 2015
The Institute of Supply Management’s U.S. manufacturing purchasing managers index unexpectedly worsened in November and substantially at that. The PMI declined 1.5 points, moving below the 50 no change threshold for the first time in three years and printing at 48.6, the lowest reading since the last U.S. recession ended in June 2009. Manufacturing PMI […] More
