Deeper Analysis
Opposite U.S. and Eurozone Purchasing Manager Trends
December 3, 2015
The sum of the U.S.-Minus-Euroland PMI spreads turned negative in November for the first time since January 2014. Within the last four months, that combined differential swung 9.1 points in the eurozone’s favor from +6.6 to –2.5. The cumulative swing since October 2014 has been 17.6 points. The difference between the U.S. non-manufacturing PMI and […] More
Central Bank Watch
ECB Statement and Press Conference
December 3, 2015
The Governing Council cut the deposit rate by a smaller-than-anticipated ten basis points to negative 0.30%, while failing to change the 0.50% refinancing rate, the 0.30% marginal lending facility rate or the EUR 60 billion per month size of its monthly asset purchases. ECB President Draghi instead said the importance of an innovation to reinvest […] More
New Overnight Developments Abroad - Daily Update
ECB Delivers Less Support than Expected, Sending Euro Sharply Higher
December 3, 2015
ECB officials, who had strongly hinted that significant additional monetary policy relief is imminent, failed to meet the market’s expectations. Largely in response, the dollar recorded an overnight drop of 2.1% against the euro and 1.7% versus the Swiss franc. Share prices in Europe are down 3.0% in France, 2.8% in Germany, 2.0% in Spain, […] More
