Central Bank Watch
European Central Bank Leaves Interest Rates Unchanged and Stops New Asset Purchases
December 13, 2018
The ECB’s interest rate structure has been at a record low since March 2016, consisting of a zero refinancing rate flanked by an overnight deposit rate of negative 0.40% and a marginal lending facility rate of +0.25%. At its last policy review of 2018, the central bank’s Governing Council reaffirmed that these rates are likely […] More
New Overnight Developments Abroad - Daily Update
Many Central Bank Meetings and a Stunning Deceleration of U.S. Import Price Inflation
December 13, 2018
The dollar shows no net overnight change against the Swiss franc, Chinese yuan, New Zealand dollar, or Canadian dollar. The greenback rose 0.8% versus the Mexican peso, 0.4% relative to the yen, and 0.1% versus the euro while dipping 0.1% vis-a-vis the Australian dollar and sterling. Asian equities rallied, but share prices in Europe and […] More
New Overnight Developments Abroad - Daily Update
Political Spectacles and Some Data of Interest
December 12, 2018
President Trump is in engaged in a last ditch effort this month to attain funding for construction of his promised wall along the Mexican border before the Democrats gain control of the House of Representatives. The peso rose 0.8% overnight against the dollar. Trump is believed to be making more progress in trade talks with […] More
New Overnight Developments Abroad - Daily Update
Investors Get Some Better News
December 11, 2018
Equities have rallied after China tentatively indicates plans to cut tariffs on U.S. car imports by more than half. Share prices in Europe have risen 2.4% in Germany, 2.3% in Switzerland, 2.2% in France, 1.9% in Spain and the U.K., and 1.8% in Italy. The Dow Jones Industrials and Nasdaq climbed over 1.0% in very […] More
New Overnight Developments Abroad - Daily Update
Week Opens with A Focus on U.K. and Global Equity Selloff
December 10, 2018
After the European Court of Justice ruled that Britain has the right to unilaterally revoke plans to leave the EU without the permission of other members, British Prime Minister cancelled tomorrow’s scheduled vote on her Brexit plan. She lacks the votes. Several released British data today underscore the huge toll that Brexit and domestic political […] More
Uncategorized
Next Week
December 7, 2018
Central Banks: Monetary policy reviews are scheduled at the European Central Bank and at central banks in Switzerland, Brazil, Iceland, Norway, the Philippines, Ukraine, Turkey and Russia. The Bank of Japan publishes findings of its quarterly Tankan survey of corporate conditions and expectations, and Fed Chairman’s postponed testimony before the congressional joint economic committee will […] More
New Overnight Developments Abroad - Daily Update
U.S. Stocks Under Renewed Selling Pressure
December 7, 2018
The late Thursday rebound in U.S. share prices proved short-lived: the Dow, S&P and Nasdaq at this writing show losses today of 0.9%, 0.8%, and 1.1% despite an equity-strengthening performance earlier in Europe and Asia. A successful conclusion to U.S.-Sino trade talks looks to be in peril. Also, the monthly U.S. labor force report revealed […] More
Deeper Analysis
U.S. PMI Readings Improved Last Month Relative to Euroland’s
December 6, 2018
The ISM-compiled U.S. non-manufacturing PMI rebounded 0.4 points to a reading in November of 60.7. That still reflects rapidly improved conditions. Sub-indices for production, orders and prices climbed by 2.7, 1.0 and 2.6 points between October and last month, but the measure of employment declined 1.3 points. The IHS-compiled service sector purchasing managers index for […] More
New Overnight Developments Abroad - Daily Update
Stampede Out of Risky Assets
December 6, 2018
Japan’s Nikkei fell 1.9% overnight, and share prices are down even more sharply in the United States, Canada, U.K., Germany, France, Spain, China, Hong Kong. 10-year sovereign debt yields have climbed 14 and 10 basis points in Italy and Greece but fallen 8 bps in the U.K., 7 bps in the U.S., 5 bps in […] More
New Overnight Developments Abroad - Daily Update
Service Sector PMIs Out but Many U.S. Cancellations
December 5, 2018
U.S. Treasury market and stock markets are closed for a federal holiday mourning the death of former U.S. President George H.W. Bush. Fed Chairman Powell’s scheduled testimony before the Joint Economic Committee in Congress was scrapped with no announced make-up date yet set, but the Beige Book analysis of regional conditions will be released at […] More
