New Overnight Developments Abroad - Daily Update
Dollar Softens but Stocks Take a Step Back ahead of U.S. Data
November 17, 2020
The dollar overnight lost 0.5% against sterling and the Chinese yuan, 0.3% relative to the yen, 0.2% versus the euro, Swiss franc and loonie, and 0.1% vis-a-vis the Australian dollar. Share prices had closed down 0.2% in China and South Korea and are currently down 1.2% in the U.K. and Spain, 0.4% in Germany and […] More
New Overnight Developments Abroad - Daily Update
Encouraging Vaccine News and Economic Data Send Equities and Oil Higher Up But Depress Dollar
November 16, 2020
A second Covid vaccine developer, Moderna, reported 94% effectiveness in early trials, and the pace of new cases in France, which was soaring, has subsequently slowed a bit. Japanese real GDP rebounded more sharply than anticipated in the third quarter, climbing at a 21.4% annualized rate, breaking a streak of three straight quarterly declines, and […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: November 14 – 20, 2020
November 13, 2020
Central Banks: Monetary policies will be reviewed in Thailand, Iceland, Turkey, Indonesia, South Africa, China, The Philippines, and Hungary. NY Fed President Williams speaks publicly as do Bank of Japan Board member Masai, Reserve Bank of Australia Governor Lowe, and Governor Bailey and MPC members Haldane and Ramsden of the Bank of England. Minutes from […] More
Deeper Analysis
White House Transitions and Financial Market Volatility
November 13, 2020
This update examines how financial markets performed between America’s Election Day in early November and the ensuing presidential inauguration on the following January 20th. It considers only those times when the party affiliation of the president changed, which happened five times between 1980 and 2016. More times than not, these periods experienced market volatility of […] More
New Overnight Developments Abroad - Daily Update
Additional Leap in U.S. Covid Cases; Euroland 3Q GDP and U.S. PPI Headline Data Menu
November 13, 2020
The dollar is slightly weaker today, with overnight losses of 0.4% against the peso, 0.3% versus sterling, 0.2% vis-a-vis the yen and Australian dollar, and 0.1% relative to the Swiss franc. The dollar is also unchanged against the yuan and euro. Covid News continued to weigh on Asian equities, which dropped 0.9% in China, 0.7% […] More
New Overnight Developments Abroad - Daily Update
Lower Bond Yields, Mixed Dollar and Softer Equities in Face of Relentless Covid
November 12, 2020
Covid cases in the last 24 hours exceeded 600k and 140k globally and in the United States. Global and U.S. deaths from the illness over the past two days averaged more than 10k and 1.45k per day. While vaccine development seems to be making good progress, a new worry is that Covid’s ability to mutate […] More
Central Bank Watch
Reserve Bank of New Zealand Adds a New Feature to Monetary Stimulus
November 11, 2020
Reserve Bank of New Zealand’s scheduled policy review. The record low 0.25% Official Cash Rate was not changed. Such had been cut by 75 basis points last March and from as high as 3.50% prior to June 2015. Officials also reaffirmed its quantitative stimulus intended to buy a maximum of NZD 100 billion by mid-2022. […] More
New Overnight Developments Abroad - Daily Update
Tech Stocks Rebound, Covid Cases Soaring, and a Holiday is Observed
November 11, 2020
On the eleventh day of the eleventh month of 1918, an armistice was signed in Compiegne, France between World War I allies and Germany that ended the so-called “war to end all wars.” Each year on November 11th, that event 102 years ago is commemorated in three countries but by three different names: Armistice Day […] More
New Overnight Developments Abroad - Daily Update
Covid Concerns, U.S. Political Tensions, Disinflation, and Weak Demand
November 10, 2020
Yesterday’s vaccine news spurred a stock market rally, but pandemic prospects remain poor until vaccines and therapeutic treatments are widely available. The public is being warned of a grim winter just ahead. New global Covid cases topped half a million yesterday, including a fresh record U.S. number exceeding 130k. U.S. hospitalizations are hovering near 60k. […] More
New Overnight Developments Abroad - Daily Update
Investors Excited by Vaccine Trial News and U.S. Election Results
November 9, 2020
Stock markets are rallying on two pieces of news. Initial results of Pfizer’s large-scale trials of a Covid-19 vaccine have reportedly demonstrated 90% effectiveness among people without a prior condition. Donald Trump has lost his bid for a second term as president, but Republicans appear to have retained control of the senate. This combination of […] More
