Central Bank Watch
Central Bank of Russia Cuts Interest Rate Again
September 16, 2022
the Central Bank of Russia’s policy interest rate was sliced by 50 basis points to 7.5%, which is only about half as much as August’s 14.3% year-on-year rate of Russian CPI inflation. According to a released statement, Russian GDP is liable to contract 4% or slightly more this year, and subdued consumption should promote a […] More
New Overnight Developments Abroad - Daily Update
Intensifying Exodus from Equities
September 16, 2022
Led by a nearly 21% overnight plunge in Fed Ex shares, key U.S. stock market indices are down about 1%. Stock markets in the Pacific Rim had closed down 2.3% in China, 2.3% in China, 1.9% in Indonesia, 1.8% in India, 1.3% in Australia and 1.1% in Japan. The German Dax and Paris Cac are […] More
New Overnight Developments Abroad - Daily Update
Marking Time Ahead of U.S. Data and Xi/Putin Meeting
September 15, 2022
There’s been little financial market reaction from data released overnight. Investors are looking ahead to a slew of U.S. releases later today, including retail sales, import prices, industrial production, the Empire State and Philly Fed monthly manufacturing surveys, and weekly jobless insurance claims. Markets will also be keeping an eye on face-to-face talks later today […] More
New Overnight Developments Abroad - Daily Update
Inflation Remains the Paramount Market Driver
September 14, 2022
U.S. equities on Tuesday experienced their largest selloff in two years, triggered by a disappoint consumer price report that showed the U.S. core inflation rate jump 0.4 percentage points to 6.3%, food price inflation of 11.4% (most since 1976), and a higher-than-forecast 12-month increase in total CPI inflation of 8.1%. The move out of riskier […] More
New Overnight Developments Abroad - Daily Update
Dollar Starts Week on Back Foot
September 12, 2022
News from the war between Russia and Ukraine has taken an unexpected turn favoring the victim, not the aggressor. The weighted dollar index dropped 0.8% overnight and is 2.4% weaker than last week’s 20-year peak. The dollar this Monday is down by 0.9% against the euro, Swiss franc and sterling, by 0.7% relative to the […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: September 10 – 16, 2022
September 9, 2022
Central Banks: Officials at the Bank of England and Bank of Russia will be reviewing monetary policies next week. Holiday in China: Mid-Autumn Day to be observed on Monday. U.S. Economic Statistical Releases: Consumer prices, producer prices, import prices, retail sales, industrial production, capacity utilization, monthly federal budget, Empire State and Philly Fed manufacturing surveys, […] More
Central Bank Watch
Another Rate Hike in Peru
September 9, 2022
The Central Reserve Bank of Peru’s policy rate had been raised for the 14th time since August 2021, but the incremental rise after this month’s policy review unexpectedly reverted back to the 25 basis points done initially. all the other increases had been by 50 basis points, and the rate in total has gone from […] More
New Overnight Developments Abroad - Daily Update
Weeks’ End Finds Investors Willing to Take Some Risk
September 9, 2022
Early in the U.S. trading day, the rises in key U.S. stock market indices range from 0.5% in the DOW to 1.2% in the Nasdaq. Share prices in the Pacific Rim had closed up 2.7% in Hong Kong, 1.2% in Taiwan, 0.9% in Singapore, 0.8% in China, 0.7% in Australia and 0.5% in Japan, and […] More
Central Bank Watch
Bank Negara Malaysia
September 8, 2022
Malaysia’s central bank policy rate was raised by 25 basis points at a scheduled monetary policy review. Such was the third such increase since May, lifts the rate to 2.50%, and brings the reversal of pandemic related relief to 75 bps of the 125 basis points of reduction in 2020. Consumer price inflation increased a […] More
Central Bank Watch
75-Basis Point ECB Rate Hike
September 8, 2022
An initial 50-basis point interest rate hike at the European Central Bank in July has been followed by a 75-bp hike at this month’s scheduled meeting. The three interest rates now included a 1.25% refinancing rate flanked by a 0.75% deposit rate and a 1.50% marginal lending facility rate. Prior to July, there had not […] More
