Deeper Analysis
August 2022 in Figures
August 31, 2022
The month of August served as a reality check to July’s fantasy that decades’ high inflation around the world could be doused successfully, speedily, and lastingly with only modest shock to the real economy. As a result, sharp increases in most long-term interest rates, big drops in share prices, and commodity price declines were experienced […] More
New Overnight Developments Abroad - Daily Update
Dollar Trading Near 20-Year High as Markets Digest Data Storm
August 31, 2022
The dollar rose overnight by 0.5% against the Swiss franc and 0.4% versus sterling and continues to hover around parity with the euro. Equity markets closed down 0.8%, 0.6% and 0.4% in China, Singapore and Japan but climbed 2.7% in India and 1.0% in Taiwan. European stock markets are moderately lower, while U.S. share prices […] More
New Overnight Developments Abroad - Daily Update
Bottom-Fishing and Lots of Data
August 30, 2022
Share prices in the Pacific Rim rebounded 2.7% in India, 1.2% in New Zealand, 1.1% in Japan, and 1.0% in South Korea. The German Dax, Paris Cac and Milan exchange currently show gains so far today of 1.4%, 0.6% and o.9%, but U.S. share prices are pretty listless, suggesting that a market bottom has not […] More
New Overnight Developments Abroad - Daily Update
Further Retreat of Equities
August 29, 2022
The realization that central bank rate normalization isn’t stopping has depressed equities further, although share prices are currently above intra-day lows in the United States and Europe. Markets in the Pacific Rim closed down 2.7% in Japan, 2.3% in Australia and Taiwan, 2.2% in South Korea and 1.5% in Indonesia. British markets are shut for […] More
New Overnight Developments Abroad - Daily Update
Powell Predictably Didn’t Pull Any Punches in Jackson Hole Speech
August 26, 2022
The tone of Fed Chairman Powell’s keynote address today at the Jackson Hole Symposium was hawkish in spite of data released earlier in the day that revealed a larger July downtick in inflation than was forecast. Monetary policy will err toward restraint until officials are very sure that inflation is returning all the way to […] More
Central Bank Watch
Another South Korean Central Bank Rate Hike and More to Come
August 25, 2022
The Bank of Korea‘s policy interest rate was raised by 25 basis points to 2.5%. This was the seventh normalizing hike over the past year from a starting rate level of 0.50%. All of the moves except the prior one in July of 50 basis points have been by a quarter of a percentage point. […] More
Uncategorized
Dollar and Stock Markets Partly Reverse Direction as Jackson Hole Symposium Kicks Off
August 25, 2022
In overnight action, the dollar fell 0.8% against the Australian dollar and 0.5% versus the kiwi. The greenback eased back only 0.2%, however, relative to the euro, yen, Swiss franc, sterling, loonie and weighted DXY index. Stock markets advanced 3.6% in Hong Kong, 1.2% in South Korea, 1.0% in China, 0.9% in Taiwan, 0.6% in […] More
Central Bank Watch
Latest Icelandic Central Bank Rate Hike… and More Promised Ahead
August 24, 2022
the Iceland’s seven-day term deposit rate was raised by 75 basis points to a six-year high of 5.5%. The current tightening cycle in Iceland began in May 2021 from a base of 0.75% and has further distance to go, according to a statement from the Central Bank of Iceland’s Monetary Policy Committee released today. Icelandic […] More
New Overnight Developments Abroad - Daily Update
Continuing Dollar Uptrend
August 24, 2022
Investors remain focused on the Federal Reserve’s annual symposium at Jackson Hole, Wyoming, which starts tomorrow. This coming event has put the theme of tightening monetary policy into the spotlight. The Fed has been at the forefront of the fight against inflation, and the dollar continues to be well-bid, rising another 0.5% overnight against its […] More
Central Bank Watch
Bank Indonesia Tightens
August 23, 2022
Bank Indonesia had been one of very few hold-outs against interest rate normalization but today announced its first rate increase a 25 basis point hike to 6.0% in November 2018. There had been five 25-basis point hikes in 2020 punctuated by a sixth drop of similar size in February 2021. That lowered the key rate […] More
