New Overnight Developments Abroad - Daily Update
Monday Rebound of Stocks Extended and Dollar Higher Too
March 27, 2018
Share prices closed up 2.7% in Japan, 1.2% in in Hong Kong, 1.4% in Taiwan, 1.1% in China, 1.0% in New Zealand, 0.8% in Singapore and 0.7% in Australia. In European trading, equities have risen between 1.5% and 2.0% in the U.K., Germany and Switzerland and between 1.0% and 1.5% in France, Spain and Italy. […] More
New Overnight Developments Abroad - Daily Update
Stocks Up… Dollar and Yen Down
March 26, 2018
Equities recouped some of last week’s heavy losses in early trading. Share prices closed higher by 0.7% in Japan, 1.4% in India, and 0.8% in Hong Kong and South Korea. Equities in Europe so far show gains of 1.0% in Switzerland, 0.7% in Germany, 0.6% in Spain, 0.5% in the U.K. and 0.4% in France. […] More
Deeper Analysis
Bear Markets and U.S. Recessions
March 24, 2018
Since a peak of 26,614 on January 26, the Dow Jones Industrials fell 11.6% in two months and has thus quickly moved 58% of the way to being a bonafide bear market, with a peak to trough drop of 20% or more. The causes of this downward correction remain active depressants, leaving little reason to […] More
Foreign Exchange Insights and Next Week
Next Week
March 23, 2018
Holiday-Shortened Week: The Good Friday/Easter break will deprive trading from full-cylinder power in the latter half of next week. Markets closures on Friday include Great Britain, the United States, India, Germany, Switzerland, Spain, South Africa, Norway, Singapore, New Zealand, Mexico, Indonesia, Hong Kong, France, Italy, Canada, Brazil and Australia. Many markets will remain shut on […] More
Central Bank Watch
Central Bank of Russia
March 23, 2018
The Board of Directors of the Russia’s central bank lowered the one-week repo rate another notch to 7.25% from 7.5% and served further notice in a released statement that they intend to “continue to reduce the key rate and will complete the transition to neutral monetary policy in 2018.” Officials noted that “annual inflation remains sustainably low” and predicted […] More
New Overnight Developments Abroad - Daily Update
Move Out of Risk Assets Extended
March 23, 2018
Stocks slumped 974 points, or 4.5%, overnight in Japan. Equities in the Pacific Rim also lost 3.4% in China, 3.2% in South Korea, 2.8% in Hong Kong, 2.0% in Australia and Singapore, 1.7% in Taiwan, 1.2% in India, and 1.0% in New Zealand. The sell-off continued in Europe with drops thus far today of 1.6% […] More
Central Bank Watch
Bank of England
March 22, 2018
The surprising element is the latest monetary policy review was not that the Bank Rate was left at 0.5% or that no change was made to the stock of bank holdings of gilts and corporate bond purchases. It is that the decision to leave the interest rate as is drew dissenting votes from McCafferty and […] More
Central Bank Watch
Bangko Sentral ng Pilipinas
March 22, 2018
Filipino officials didn’t tighten their monetary stance at the latest review but left the door open to such a move in the future. The overnight reverse repo rate and lending rate have been at 3.0% and 4.0% for some time. In mid-2016, officials switched from a point target to a 3-4% target range. A released […] More
Central Bank Watch
Bank Indonesia
March 22, 2018
Indonesia’s seven-day reverse repo rate was last changed in September 2017 when such was sliced 25 basis points to 4.25%. The March monthly review kept it there as well as retaining the deposit facility rate and lending facility rate at 3.5% and 5.0%, respectively. The repo rate was also reduced by 25 bps in June […] More
Central Bank Watch
Central Bank of the Republic of China (Taiwan)
March 22, 2018
At the end of the latest policy review, Taiwanese monetary officials retained a 1.375% discount rate. It’s been at that level since four consecutive cuts of 12.5 basis points from September 2015 through the meeting in June 2016. Taiwan continues to experience positive growth and stable, sub-2% inflation. The appropriateness of the present interest rate […] More
