New Overnight Developments Abroad - Daily Update
Chinese Central Bank Reserve Requirement Cut on Leap Year Day
February 29, 2016
The People’s Bank of China lopped another 50 basis points off its deposit reserve requirement ratio to 17.0%. Five reductions in 2015 had reduced such to 17.5% from 20.0%, but the fifth of these was done five months ago in late October. This kind of stimulus risks exposing the yuan to greater selling pressure. The […] More
Deeper Analysis
G20 Meeting of Finance Ministers and Central Bank Governors Leaves Much Unresolved
February 27, 2016
A two-day meeting in Shanghai on Friday and Saturday provided a platform for a wide range of opinions over what to do about the daunting risks to the world economy, world peace and the environment. A released statement typically speaks in generalities rather than specifics. There’s no substance to ignite a clear upturn in market […] More
Foreign Exchange Insights and Next Week
Next Week
February 27, 2016
G20 Summit: The two-day gathering in Shanghai of finance ministers and central bank chiefs ended February 27 and reportedly focused on a slew of shared problems such as insufficient global demand, Europe’s flood of refugees, the possibility of Britain leaving the European Union, the impact of negative interest rates in several economies and U.S. monetary […] More
New Overnight Developments Abroad - Daily Update
Markets Watching G20 Meeting… More Low Inflation News
February 26, 2016
Finance Ministers and central bank chiefs from the Group of Twenty economies began a two-day conference in Shanghai. The Governor of the Peoples Bank of China denied the yuan will be devalued and said other tools are available to support demand in the world’s second biggest economy. Chinese property prices rose 2.5% in January. More […] More
New Overnight Developments Abroad - Daily Update
Big Drop in Chinese Share Prices Doesn’t Set Today’s Global Market Tone
February 25, 2016
China’s Shanghai Composite index plunged 6.4% this Thursday after a sharp rise in overnight money rates there. But elsewhere, stocks climbed 1.4% in Japan, 1.0% in Taiwan, 0.3% in South Korea and in Europe now show gains of 3.2% in Greece, 2.6% in Spain, 2.3% in Italy, 2.4% in the U.K., 2.3% in France, 1.6% […] More
New Overnight Developments Abroad - Daily Update
Markets in Helter Skelter Mode as Trump Wins Big and Oil Drops 3.3%
February 24, 2016
Donald Trump captured the Republican caucus in Nevada with 45.9% of the vote to Rubio’s 23.9% and Cruz’ 21.4% third place showing. With neither Rubio nor Cruz inclined to drop out, Trump’s bid for the nomination looks unstopable. Following Tuesday’s difficult day for U.S. stocks, share prices in Europe are registering their worst day since […] More
Central Bank Watch
Hungarian National Bank
February 23, 2016
The central bank monetary council agreed again to leave Hungary’s base rate at 1.35% but left the door open to possible further easing of an already accommodative stance. In any case, there will not be any tightening in the forecast policy horizon since expected inflation is at an historic low according to a released statement. […] More
Central Bank Watch
Central Bank of the Republic of Turkey
February 23, 2016
The change in Turkish central bank interest rates was announced a year ago tomorrow. At that time, the one week repo rate and overnight borrowing rate were sliced by 25 basis points to 7.5%, and 7.25%, respectively, while the overnight lending rate was reduced 50 basis points to 10.75%. Those rate levels will be continue […] More
New Overnight Developments Abroad - Daily Update
Fresh Focus on Chinese Policy
February 23, 2016
China again has been the straw that stirred things us. The catalyst today was the largest daily reduction of the yuan’s fixing value by officials at the People’s Bank of China in several weeks. The result was renewed risk aversion. A secondary depressant was a weaker-than-expected German business climate in February reported by the Ifo […] More
Central Bank Watch
Bank of Israel Leaves Interest Rate Unchanged at 0.10%
February 22, 2016
It’s been a year since the last interest rate modification at Israel’s central bank. That 15-basis point cut followed four consecutive calendar years in which the rate was reduced three times by 25 basis points each time. The current 0.10% level thus compares with 3.25% at the end of 2010. Israeli monetary officials released a […] More
