New Overnight Developments Abroad - Daily Update
Nothing but Red on the Screens
May 19, 2022
It’s no longer about the data, or the news for that matter. A self-perpetuating technically-driven downward dynamic has taken over financial markets. For the Nasdaq, the bear market threshold was breached a while ago. S&P futures are within a percent of bear market territory, and its only a matter of time before the Dow joins […] More
New Overnight Developments Abroad - Daily Update
Risk Aversion Returns
May 18, 2022
It’s not surprising that the investor move back into riskier assets over the prior three sessions proved to be short-lived because the reasons behind this year slide in equities and rise of the dollar hadn’t disappeared. The three main U.S. stock market indices are down 0.5-1.0% in futures trading. Smaller dips have occurred in Europe. […] More
New Overnight Developments Abroad - Daily Update
Few Rays of Hope
May 17, 2022
Euroland GDP growth last quarter was revised marginally higher. British labor market data showed greater resilience than imagined, and Chinese officials indicated progress against Covid and plans to reopen Shanghai. Recent U.S. earnings reports from retailers have exceeded expectations. Share prices rallied Tuesday, closing up 3.3% in Hong Kong, 2.6% in India, 1.0% in Taiwan, […] More
New Overnight Developments Abroad - Daily Update
Disappointing Chinese Data to Kick Off the Week
May 16, 2022
Investors got some bad news from April Chinese economic data and the European Union’s spring forecast. Equity markets closed down 0.3% in China, South Korea, and India but up 0.5% in Japan and 0.3% in Australia. The German Dax and Paris Cac are down 0.6% and 0.4%, and U.S. stock futures have dropped, too. Ten-year […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: May 14 – 20, 2022
May 13, 2022
Central Bank: Monetary policy reviews are scheduled in the Philippines, Sri Lanka, South Africa, China, and Thailand. Minutes from this week’s Reserve Bank of Australia board meeting get published. Holiday: Several countries commemorate Buddha’s birthday early in the week. Scheduled U.S. Data Releases: Retail sales, industrial production, capacity usage, housing starts, building permits, existing home […] More
New Overnight Developments Abroad - Daily Update
Investor Bottom-Fishing
May 13, 2022
Within bear markets, brief interruptions happen typically as investors pause to take in the carnage and test markets to see if perhaps enough has been lost to secure a trend reversal. Today’s been one such instance. Share prices rose in Pacific Basin markets by 2.7% in Hong Kong, 2.6% in Japan, 2.1% in South Korea, […] More
Central Bank Watch
Peruvian Central Bank Rate Hike
May 12, 2022
The Central Reserve Bank of Peru’s policy interest rate had been at 2.25% when the pandemic struck in early 2020. Back-to-back percentage point cuts in March and April pinned the rate at 0.25% where it remained for fifteen months. Peruvian CPI inflation of 1.6% in June 2020 had constituted an 18-month low and in the […] More
Central Bank Watch
Another Hike of Mexico’s Overnight Interbank Interest Rate Target
May 12, 2022
The Bank of Mexico’s Governing Board was still in an accommodating mood one year after the pandemic’s onset and made one final cut of its policy interest rate in February. But as inflation in Mexico and around the world began to heat up that spring, it did not take the central bank officials long to […] More
Central Bank Watch
Second Serbian Central Bank Rate Hike
May 12, 2022
The National Bank of Serbia, which in April authorized its first interest rate hike in over ten years, just matched the 50-basis point size of that initial increase. A noted above, Serbian CPI inflation has accelerated more than threefold over the past year to 9.6% and is well above target. The new central bank interest […] More
New Overnight Developments Abroad - Daily Update
Intensifying Global Risk Aversion
May 12, 2022
Equities hit an air pocket on Thursday in the Pacific Rim and Europe, closing down 2.2% in Taiwan and Hong Kong, 3.2% lower in Indonesia, and off 1.8% in Japan and Australia, 2.1% in India, 1.6% in South Korea and 1.9% in Singapore. Share price declines of 2.0% or more have so far occurred in […] More
