New Overnight Developments Abroad - Daily Update
Week of Bad News Limping to a Close
August 20, 2021
Equity markets experienced another difficult day in Asia but have showed scant net change so far in Europe or the United States. Share prices closed down 1.8% in Hong Kong, 1.2% in South Korea, 1.1% in China and 1.0% in Japan. The weighted DXY dollar index touched a 9-month high of 93.73 overnight but is […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: August 21 – 27, 2021
August 19, 2021
Central Banks: Monetary policies will be reviewed in Iceland, Poland, Hungary, South Korea, and Israel. Special Event: The Kansas City Fed’s annual central banking symposium in Jackson Hole, Wyoming runs from August 26th through 28th. Scheduled U.S. Data Releases: Quarterly GDP. Monthly personal income, spending and PCE price deflator, Kansas City Fed and Richmond Fed […] More
New Overnight Developments Abroad - Daily Update
Divergent Trends Continue in Equities (Down) and the Dollar (Up)
August 19, 2021
Equity markets on Thursday tumbled 2.7% in Taiwan, 2.1% in Indonesia and Hong Kong, 1.9% in South Korea, 1.4% in Singapore, 1.1% in Japan but just 0.6% in China and 0.5% in Australia. In Europe thus far, share prices are down over 2.0% in Germany and France and by more than 1.5% in the U.K. […] More
New Overnight Developments Abroad - Daily Update
Cloudy Picture: Inflation Still Elevated but Delta Variant Poses Growth Risk
August 18, 2021
Central bankers and private investors are continuing to balance the pressures of elevated inflation on the one hand but a less certain strong recovery on the other. This has made for choppy markets. Overnight movements in the dollar were narrowly mixed, with net dips of 0.2% against sterling and 0.1% relative to the euro, loonie, […] More
New Overnight Developments Abroad - Daily Update
Equities Down but Dollar Stronger as U.S. Retail Sales Take a Hit
August 17, 2021
Stock markets in the Pacific Rim on Tuesday fell by 2.0% in China, 1.7% in Hong Kong, 1.2% in Taiwan, and 0.9% in Australia, South Korea, and Singapore. Share prices thus far today in Europe are down 0.9% in Italy, o.7% in Spain, 0.4% in France and 0.2% in Germany. The key U.S. equity indices […] More
New Overnight Developments Abroad - Daily Update
Equities Depressed by Unsettling Monday News on Several Fronts
August 16, 2021
Afghanistan’s government fell to the Taliban in three days, not three months as the U.S. intelligence community had presumed. Washington’s lame attempt to differentiate the fall of Kabul from that of Saigon 46 years earlier is hardly persuading anyone, even among supporters of the Biden Administration. Covid developments over the weekend continued to spiral backwards, […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: August 14 – 20, 2021
August 13, 2021
Central Banks: Monetary policies will be reviewed in New Zealand, Sri Lanka, Indonesia, Norway and China. Minutes of most recent policy reviews by the FOMC and Reserve Bank of Australia Board will be published. Fed Chairman Powell speaks publicly. Holiday: Indonesians observe Independence Day on Tuesday. Scheduled Release of Following U.S. Economic Statistics: Retail sales, […] More
Central Bank Watch
Central Bank Rate Hike in Peru
August 13, 2021
An interest rate hike surprise has been sprung by officials at the Central Reserve Bank of Peru. With inflation accelerating there more than half a percentage point to 3.8% in July, monetary policymakers doubled their policy interest rate to 0.5%. This increase was the first change since a pair of 100-basis point reductions in March […] More
New Overnight Developments Abroad - Daily Update
Inflation Stays in the Spotlight
August 13, 2021
Quite a few indicators of inflation were released this Friday, among which July U.S. import prices caught the most attention. Import prices had posted monthly advances of at least 0.9% in each of the previous seven months but went up just 0.3% in July. This reduced year-on-year import price inflation by a full percentage point […] More
Central Bank Watch
Bank of Mexico Officials Implement Second Straight 25-Basis Point Hike of Overnight Interbank Rate
August 12, 2021
The 25-basis point interest rate increases in June and now reverse cuts last February and September, and the new rate level of 4.5% becomes the highest in a year but well below the pre-pandemic level of 7.25%. A statement from the Bank of Mexico foresees a danger of inflation tracking above its baseline forecast because […] More
