Central Bank Watch
Bank of Mexico Interest Rate Cut Again
November 15, 2019
The Governing Board of the Bank of Mexico voted 5-2 in favor of a third consecutive 25-basis point interest rate cut, which becomes 7.5%. The two dissenters wanted a 50-basis point reduction. The combined 75-basis point reduction remains small in comparison with 500 basis points of tightening during 2016-18. Officials released a statement that notes […] More
New Overnight Developments Abroad - Daily Update
Out of Fixed Income Assets and Into Stocks
November 15, 2019
After a few days that saw sovereign debt yields decline, ten-year U.S. Treasuries, German bunds and British gilts each rose two basis points overnight. In stock market action, equities rose 0.9% in Australia, 1.1% in South Korea, 0.7% in Japan and Taiwan but slipped 0.6% in China. European stock markets so far show gains of […] More
New Overnight Developments Abroad - Daily Update
Important Japanese, Euro Area, and Chinese Data Released
November 14, 2019
Japanese real GDP expanded at a lower-than-forecast 0.2% last quarter at a seasonally adjusted annualized rate. It was the weakest quarterly growth rate in a year. Net exports and inventories combined to exert a 1.8 percentage point drag on GDP growth. The GDP price deflator rose 0.6% between the third quarters of 2018 and 2019. […] More
Central Bank Watch
Reserve Bank of New Zealand Didn’t Cut Interest Rates Further
November 13, 2019
There’s already been one central bank surprise, this from the Reserve Bank of New Zealand. Officials there had been expected to extend their easing. New Zealand’s Official Cash Rate previously this year had been reduced by 25 basis points in May and 50 basis points to a mere 1.0% in August, but policymakers decided not […] More
New Overnight Developments Abroad - Daily Update
A Little Bit of Everything This Wednesday
November 13, 2019
Investors have much to watch today including two separate congressional events of great interest. Public hearings on a possible impeachment of President Trump begin at 10:00 EST in the House Intelligence Committee, and one hour later Fed Chairman Powell testifies on the economic outlook before the Joint Economic Committee. There’s already been one central bank […] More
New Overnight Developments Abroad - Daily Update
Dollar and Stock Markets Up
November 12, 2019
The dollar traded up overnight by 0.4% against the kiwi, 0.3% relative to the Swiss franc, 0.2% vis-a-vs the euro, loonie and sterling, and 0.1% against the Australian dollars. Stock markets in the Pacific Rim advanced by 0.8% in Japan, South Korea, Taiwan and Singapore and by 0.5% in Hong Kong and Indonesia. India is […] More
New Overnight Developments Abroad - Daily Update
Active Day for Markets In Spite of Holidays
November 11, 2019
Equity markets are open despite today’s observance of Veterans Day in the United States, Remembrance Day in Canada and Armistice Day in France, which observes the 101st anniversary of the end of World War I. Investors are reacting to some meaningful data and other developments. Street protests in Hong Kong turned more violent, sending the […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: November 9-15
November 8, 2019
Central Banks: Monetary policy reviews are scheduled next week in New Zealand, Sri Lanka, the Philippines and Mexico. Fed Chairman Powell gives two days of testimony on the U.S. economic outlook, appearing Wednesday before the Senate Economic Committee and Thursday before the House Budget Committee. Other Fed officials speaking in public during the week include […] More
Central Bank Watch
Central Reserve Bank of Peru
November 8, 2019
The Central Reserve Bank of Peru late yesterday announced a 25-basis point reduction of its reference interest rate to 2.25%. This follows a similar cut in August. There were also two 25-basis point cuts in the first quarter of 2018 and three such cuts in the second half of 2017. A released statement observes weakness […] More
New Overnight Developments Abroad - Daily Update
Dollar and Sovereign Debt Yields Firm… Commodity and Share Prices Lower
November 8, 2019
The dollar appreciated overnight by 0.6% against the kiwi, 0.3% versus the Australian dollar, 0.2% relative to the loonie, yuan, and peso, and 0.1% vis-a-vis the yen, euro, sterling and Swiss franc. The 10-year gilt and U.S. Treasury yields extended their rise by another three basis points. Comparable sovereign debt yields in Italy, Greece, Portugal […] More
