Archive for May 2021

New Overnight Developments Abroad - Daily Update

Another Down Day Looms in U.S. Equities

May 20, 2021

U.S. stock indices fell on the first three trading days of this week, and futures point to a further slight loss at the open. FOMC minutes from the April 27-28 meeting revealed some committee members itching to begin considering a discussion on when to start tapering stimulus if U.S. data continue to show rapid improvement […] More


Central Bank of Iceland Raises Interest Rate to 1.0%

May 19, 2021

The Central Bank of Iceland today became the first Western European central bank authority to raise its interest rate. During 2020, the monetary policy committee had slashed its policy rate from 3.0% to 0.75% in five incremental cuts. But a released statement after today’s scheduled meeting showed that officials are taking current 8-year consumer price […] More

New Overnight Developments Abroad - Daily Update

Bitcoin Disaster, Equities Fall Again, and Mixed Inflation News

May 19, 2021

The Bitcoin fallout from Elon Musk’s reversal on Tesla-for-bitcoin transactions has been huge. The cryptocurrency dropped over 20% overnight and at its intra-day low was showing a 43% loss over the past five weeks to its lowest level in 11 weeks. Wednesday’s been a difficult day for equity trading as well, with losses in the […] More

New Overnight Developments Abroad - Daily Update

Dollar Slides to Lowest Level Since Early January

May 18, 2021

The weighted DXY dollar index fell 0.4%, penetrating the key 90.00 threshold and touching an intra-day low of 89.75 versus a 52-week trough of 89.21. Bilateral dollar losses overnight totaled 0.6% against the Swiss franc and kiwi, 0.5% relative to the euro and sterling, 0.4% versus the Australian dollar, 0.3% vis-a-vis the loonie and yuan, […] More

New Overnight Developments Abroad - Daily Update

Renewed Downward Pressure on Equities and the Dollar

May 17, 2021

Equities this Monday fell 3.0% in Taiwan, 1.8% in Indonesia, 0.9% in Japan, and 06% in South Korea. Losses so far range from 0.3% to 0.7% in the U.K., Germany, France and Spain, and U.S. futures point to a drop at the open of about 0.3%. Ten-year sovereign debt yields have climbed six basis points […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: May 15 – 21, 2021

May 14, 2021

Central Banks: Monetary policies are scheduled for review next week in South Africa, Iceland, and Sri Lanka. The People’s Bank of China will set its one- and five-year Loan Prime Rates for the coming month. Minutes will be published from the last Australian and FOMC monetary policy meetings. Events and Holidays: EU finance ministers hold […] More

New Overnight Developments Abroad - Daily Update

Another Batch of Important U.S. Data Due Later Today

May 14, 2021

Thursday’s ebbing of inflation phobia in financial markets extended into overnight trading, and now investors await this morning’s release of U.S. import prices, retail sales, industrial production, and the U. Michigan index of consumer sentiment. Equity markets in the Pacific Rim rebounded 2.3% in Japan, 1.8% in China, 1.1% in Hong Kong, kand 1.0% in […] More

New Overnight Developments Abroad - Daily Update

Bracing for the Potential of More Disruptive U.S. Releases Today

May 13, 2021

Last Friday brought the biggest monthly under-performance of U.S. jobs relative to analyst expectations, and yesterday’s consumer price report crushed market forecasts. Instead of monthly and yearly rises of 0.2% and 3.6%, the total CPI jumped 0.8% on month and to a 151-month year-on-year high of 4.2%. Even worse, core CPI recorded its largest monthly […] More

New Overnight Developments Abroad - Daily Update

CPI Inflation Rose in April to 24-, 14- and 151-Month Highs Germany, France and the United States

May 12, 2021

Equity markets remain vulnerable to fears that higher inflation will compel central banks to raise interest rates sooner than forward guidance has been suggesting. Markets closed down today by 4.1% in Taiwan, 1.6% in Japan, 1.5% in South Korea, and 0.7% in Singapore and Australia. U.S. stock futures are somewhat lower, too. Share prices recovered […] More

New Overnight Developments Abroad - Daily Update

Persistent Inflation Concerns Upsetting Equity Markets and Dollar to Lesser Extent

May 11, 2021

A sampling of Asian stock markets suffered loses Tuesday of 3.8% in Taiwan, 3.1% in Japan, 2.0% in Hong Kong, and 1.2% in Singapore and South Korea. Australia’s market fell 1.1%, and in Europe, markets are down currently by between 1.4% and 2.3% in Switzerland, Spain, Italy, France, the U.K. and Germany. Technology stocks have […] More