New Overnight Developments Abroad - Daily Update
Equities and Dollar Up Ahead of FOMC Announcement
January 26, 2022
Share prices so far today have climbed 1.8% or more in Germany, France, Spain, Italy and Great Britain. Futures trading in the S&P 500, DJIA, and Nasdaq show overnight gains of 1.0 – 1.8%. Equities in Asia closed narrowly mixed with drops of 0.4% in Japan and South Korea but gains of 0.7% in China […] More
Central Bank Watch
50-Basis Point Central Bank Rate Hike in Hungary Beats Forecasts
January 25, 2022
The National Bank of Hungary unexpectedly stepped up its pace of interest rate normalization this month, lifting the base rate by a half percentage point to 2.9%, a 97-month high. This was the eighth consecutive monthly increase. From a starting base rate level of 0.6%, there had previously been two increases of 15 basis points […] More
New Overnight Developments Abroad - Daily Update
Global Equity Prices Remain Highly Unstable
January 25, 2022
Five problems are contributing to stock market volatility around the world: The highest geopolitical tensions between the United States and Russia since the Cold War ended. A high probability that tomorrow’s Fed statement and press conference will signal a rate hike liftoff in March. Uncertainty over how inflation will evolve in 2022 after last year’s […] More
New Overnight Developments Abroad - Daily Update
Dollar Buoyed by Risk Aversion Ahead of FOMC Meeting and Also Fanned by Ukraine Tensions and Weak Purchasing Manager Surveys
January 24, 2022
The dollar has stremgthened 0.3% against the euro, loonie and on a weighted DXY basis. Even sharper advances can be seen of 0.7% relative to the Australian dollar and 0.5% versus sterling. The global sell-off of equities has resumed, with losses today of 2.6% in India, 1.5% in South Korea, 1.3% in New Zealand and […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: January 22-28, 2022
January 21, 2022
Central Banks: The Federal Reserve heads a list of scheduled monetary policy board meetings that also includes South Africa, Canada, Hungary, Chile and Colombia. Fed Chairman will hold a press conference that is expected to prepare investors for the possibility of a rate hike at the following meeting in March. A summary of the this […] More
New Overnight Developments Abroad - Daily Update
Rout of Risky Assets Continues
January 21, 2022
The third week of January has seen relentless selling pressure against riskier financial assets, and Friday is not providing any respite. At next Wednesday’s post-FOMC press conference, Fed Chairman Powell is widely expected to signal a likely rate hike in March and other coming steps to rein in the accommodative policy stance. Equities around the […] More
Central Bank Watch
National Bank of Ukraine
January 20, 2022
Officials at the National Bank of Ukraine, who had lifted their policy rate by three full percentage points to 9.0% last year, could not afford to pause rate tightening at this juncture. Instead at today’s first scheduled policy meeting of 2022, the rate was lifted by a fourth full percentage point to 10%, surpassing analyst […] More
Central Bank Watch
Rate Hike at Central Bank of Sri Lanka
January 20, 2022
The Central Bank of Sri Lanka‘s policy interest rate was also lifted today. An initial increase had been engineered last August of 50 basis points to 5.0%, and today’s move was also a half percentage point to 5.5%. There had been five cuts in 2020 totaling 250 basis points, so the rate remains 150 bps […] More
Central Bank Watch
Second Chinese Interest Rate Cut This Week
January 20, 2022
Officials at the People’s Bank of China, who on Monday of this week had cut their 1-year and 1-week interest rates by five and 10 basis points respectively, doubled down today with a reduction of another ten basis points in the 1-year loan prime rate to 3.70% as well as a 5-basis point cut of […] More
New Overnight Developments Abroad - Daily Update
Dollar Little Changed on Day that Saw Many Central Bank Meetings and Thick Menu of Released Data
January 20, 2022
The weighted dollar edged up by a marginal 0.1% overnight. It gained 0.1% against the euro and Swiss franc but is unchanged against the yen and sterling and down 0.1% versus the Canadian dollar. Stock market action in the Pacific Rim was widely varied, with Japan Nikkei and Hong Kong’s Hang Seng indices closing 1.1% […] More
