Foreign Exchange Insights and Next Week
Next Week
December 28, 2018
Holiday Closures: New Year’s Day, which falls on Tuesday, is the most broadly experienced holiday in the world. Russia will be closed also on Monday and New Zealand on Wednesday. Japan is shut on Thursday and will close early on Friday. Much of Switzerland will be observing Berchold’s Day on Wednesday. Central Banks: Minutes will […] More
New Overnight Developments Abroad - Daily Update
Persistent Volatility as 2018 Winds Down
December 28, 2018
U.S. equities whip-sawed wildly in Thursday’s session, closing high. The upward direction carried into early Friday, with markets gaining 0.9% in Taiwan, 0.8% in India, 1.0% in Australia, 0.6% in South Korean, 0.4% in China and Hong Kong but dipping 0.3% in Japan. Markets in Europe are up so far 2.4% in Switzerland and between […] More
New Overnight Developments Abroad - Daily Update
All Markets Back Open but Still in Yearend Mode
December 27, 2018
Today is the oasis between Christmas and New Year market closures. There are but a few data releases and no meaningful central bank policy reviews to report. Whereas some stocks in the Pacific Rim rebounded, those markets in Europe and U.S. futures are down. To wit, equities climbed 3.9% in Japan, 1.9% in Australia, 1.7% […] More
New Overnight Developments Abroad - Daily Update
Will U.S. Stocks Get Boxed Again: That is the Question
December 26, 2018
Many, many markets remained closed today for Boxing Day, St. Stephen’s Day (Italy) or a second day of Xmas (Germany and Hong Kong), but stock exchanges in the United States, where the DJIA tanked over 600 points in an abbreviated session on Christmas Eve, reopen and may set the tone for the rest of the […] More
New Overnight Developments Abroad - Daily Update
A 5% Plunge in Japanese Share Prices on Christmas Day
December 25, 2018
Almost all markets are closed this Christmas Day, Japan’s being the most notable exception. The Nikkei 225 lost 1,010 points or 5.0% while the Topix index dropped 4.9% in continuing panic following yesterday’s largest slide ever in U.S. share prices on the last business day before Christmas. Equities in other open markets fell 2.3% in […] More
Deeper Analysis
Trump and the U.S. Stock Market
December 24, 2018
Earlier in his presidency, Donald Trump would frequently cite rising U.S. share prices as a vote of confidence in his leadership and economic policies. However, less than two years into his term, the Nasdaq and S&P 500 have entered bear market territory, and the Dow Jones Industrials, with a 19.1% slide from peak, is knocking […] More
New Overnight Developments Abroad - Daily Update
Sleepless at The White House
December 24, 2018
The Christmas break, which has begun in many countries around the world, has not halted the the Byzantine atmosphere surrounding the U.S. White House. Defense Secretary Mattis resigned but agreed to stay on through February 28, but President Trump has asked him to be gone by January 1st. The President is reportedly also seeking ways […] More
Foreign Exchange Insights and Next Week
Next Week
December 21, 2018
Holiday Closures: Many countries will be closed either all Monday (Christmas Eve) or for part of the that day. Japan also will be shut Monday in observance of the Emperor’s Birthday even though it actually falls on Sunday. Most markets but notably not Japan are closed Tuesday for Christmas. On Wednesday (Boxing Day and St. […] More
New Overnight Developments Abroad - Daily Update
Dollar Stages Moderate Rebound
December 21, 2018
Broad dollar gains overnight amount to 0.6% against the kiwi, 0.4% relative to the loonie and euro, 0.3% vis-a-vis the peso, Swiss franc, and yuan, 0.2% versus the Australian dollar and 0.1% relative to sterling. Dollar/yen is unbalanced. In the continuing follies that markets have come to expect from the U.S. government, Defense Secretary Mattis […] More
Central Bank Watch
Bank of Mexico Tightens for Fourth Time in 2018
December 20, 2018
A 25-basis point increase in Mexico’s overnight interbank rate to 8.25% announced today brings the cumulative increase this year to a full percentage point, which matches what the Fed did this year and keeps the premium relative to the federal funds target at a very wide six percentage points. Aside from earlier hikes this year […] More
