Central Bank Watch
Central Bank of Hungary
April 25, 2017
At this month’s meeting of Hungary’s Monetary Council, officials left interest rates including the 0.90% Base Rate unchanged as expected. The rate was slashed from 7.0% prior to August 2012 to 2.1% over the ensuing two years, reduced by a further 75 basis points in March-July of 2015 and again by 45 basis points in three […] More
New Overnight Developments Abroad - Daily Update
Volatile Markets
April 25, 2017
In the aftermath of the French election and with the risk of a partial U.S. government shutdown still looming, big market moves continued on Tuesday. Better-than-expected U.S. corporate earnings reports from the likes of Caterpillar are extending the U.S. stock market rally. Equities in Asia closed up 1.4% in Hong Kong, 1.3% in Taiwan, 1.1% […] More
New Overnight Developments Abroad - Daily Update
Super-Charged Euro and Other Big Market Changes after French Election
April 24, 2017
The centrist candidate, Macron, and not anti-euro Le Pen, won the first round of France’s presidential election on Sunday. Le Pen came in second place with 2.5 percentage points fewer votes than Macron, but initial opinion polls are giving Macron a decisive edge heading into their run-off vote on May 7. In response, the dollar […] More
Foreign Exchange Insights and Next Week
Next Week
April 21, 2017
Central Banks: Monetary policy meetings are scheduled in Japan, Euroland, Sweden, Colombia, Russia, Turkey and Hungary. BOJ Governor Kuroda and ECB President Draghi will hold press conferences. The BOJ Board publishes an updated Outlook of Economic Activity and Prices. The governor of the Reserve Bank of Australia and President of the Swiss National Bank also […] More
New Overnight Developments Abroad - Daily Update
Much to Ponder This Friday
April 21, 2017
Many of the themes affecting markets of late had new developments this day. The threat of trade wars is one of them. Preliminary purchasing manager survey results for April reported by Markit Economics reflect the beneficial impact in Europe of the euro’s softer tone. Euroland’s composite, manufacturing, and service-sector indices each climbed to a six-year […] More
Central Bank Watch
No Change in Indonesia Monetary Policy
April 20, 2017
As analysts expected, Bank Indonesia’s seven-day reverse repo rate, the main policy benchmark, was left at 4.75%, the level since a sixth and final 25-basis point reduction made during 2016. This occurred last October and followed similar moves in January, February, May, June, and September. Monetary officials also left their overnight deposit and lending rates […] More
New Overnight Developments Abroad - Daily Update
Softer Dollar and Yen
April 20, 2017
The dollar has rebounded 0.5% against the yen but has traded down 0.5% against the Australian dollar, 0.3% relative to the euro, peso and sterling, and 0.2% vis-a-vis the Swiss franc and kiwi. U.S. share prices opened a bit firmer. Japan’s Nikkei and the Shanghai composite index closed unchanged on Thursday. Stocks climbed 1.0% in […] More
New Overnight Developments Abroad - Daily Update
Geopolitical Risks Persist but Market Risk Aversion Pauses
April 19, 2017
European equities recovered 1.0% in Spain, 1.5% in Italy, 0.5% in Greece, 0.4% in France and 0.3% in Germany. Share prices opened a little higher in the United States. Earlier, stocks had fallen 1.1% in Taiwan, 0.8% in China, 0.5% in South Korea, 0.6% in Australia but edged 0.1% higher in Japan. The dollar climbed […] More
New Overnight Developments Abroad - Daily Update
Sterling Lifted by Decision to Hold Early British Election
April 18, 2017
British Prime Minister Theresa May will reportedly announce a decision tomorrow to hold a snap parliamentary election on June 8. The previous British election was held in May 2015, and another one isn’t required until May 2020. May, who succeeded the resigning David Cameron last July, had previously been opposed to calling snap elections but […] More
New Overnight Developments Abroad - Daily Update
Important Developments on Easter Monday
April 17, 2017
A slew of markets remained closed including the U.K., Australia, New Zealand, Germany, France, Italy, Spain, Portugal, Belgium, The Netherlands, Greece, Switzerland, Hong Kong, South Africa, Sweden, Denmark, Norway, and Hungary. A Turkish referendum over the weekend has given President Erdogan sweeping additional powers. The lira appreciated initially more than 2.0% in response. North Korea’s […] More
