August 2020 in Figures
August 31, 2020
Financial markets in August experienced significant increases in share prices and 10-year sovereign debt yields and a pronounced further decline in the dollar’s external value. Central bank policy interest rates again held steady in the U.K., U.K., Switzerland, euro area and Japan but were lowered in several developing economy countries such as Mexico by 50 basis points and Mexico, Romania, and Namibia each by 25 basis points. A modified Federal Reserve reaction function to deviations of inflation from target had been expected but nonetheless was interpreted as signaling a more prolonged delay before the next U.S. interest rate hike.
Among key commodity prices, West Texas Intermediate oil went up more than 5% with a late-month lift from Hurricane Laura’s landfall in Louisiana. Gold poked above $2,000 early in August but quickly abandoned that beachhead.
| 10-Yr Yield | 08/31/20 | 07/31/20 | Change in Aug |
| U.S. | 0.71% | 0.53% | +18 Basis Points |
| Germany | -0.40% | -0.53% | +13 |
| Japan | 0.04% | 0.01% | +3 |
| U.K. | 0.31% | 0.10% | +21 |
| Canada | 0.63% | 0.46% | +17 |
| Switzerland | -0.40% | -0.59% | +19 |
| CB Policy Rate | 08/31/20 | 07/31/20 | Change in Aug |
| Fed funds target | 0.00/0.25% | 0.00/0.25% | 0 Basis Pts |
| ECB deposit rate | -0.50% | -0.50% | 0 |
| BOJ policy rate | -0.10% | -0.10% | 0 |
| BOE Bank Rate | -0.10% | -0.10% | 0 |
| Swiss 3M Libor | -1.25/-0.25% | -1.25/-0.25% | 0 |
| FX | 08/31/20 | 07/31/20 | Aug Chg in $ |
| EUR/USD | 1.1936 | 1.1773 | -1.4% |
| USD/JPY | 105.91 | 105.92 | -0.0% |
| USD/CHF | 0.9037 | 0.9141 | -1.1% |
| GBP/USD | 1.3368 | 1.3081 | -2.1% |
| AUD/USD | 0.7376 | 07141 | -3.2% |
| NZD/USD | 0.6736 | 0.6629 | -1.6% |
| USD/CAD | 1.3044 | 1.3421 | -2.8% |
| USD/CNY | 6.8484 | 6.9752 | -1.8% |
| Equities | 08/31/20 | 07/31/20 | Change in Aug |
| S&P 500 | 3514 | 3271 | +7.4% |
| Nasdaq | 11775 | 10745 | +9.6% |
| Djia | 28430 | 26428 | +7.6% |
| Dax | 12945 | 12313 | +5.1% |
| Nikkei | 23140 | 21710 | +6.6% |
| Ftse | 5964 | 5898 | +1.1% |
| Canada TSE | 16548 | 16169 | +1.1% |
| Swiss SMI | 10136 | 10006 | +1.3% |
| Commodities | 08/31/20 | 07/31/20 | Change in Aug |
| Oil, $ per barrel | 42.61 | 40.27 | +5.8% |
| Gold, $ per ounce | 1967.60 | 1962.80 | +0.2% |
Copyright Larry Greenberg 2020. All rights reserved. No secondary distribution without express permission.
Tags: equities, foreign exchange rates, gold and oil prices, sovereign debt yields
ShareThis
