Archive for June 2023

Deeper Analysis

Second Quarter 2023 in Figures

June 30, 2023

Stickier inflation than elsewhere in the U.K., where the CPI remained at 8.7% in May, was reflected in a bigger increase during 2Q in long-term interest rates as well as a more aggressive 75-basis point Bank of England rate hike. In a quarter when share prices rebounded in other industrialized economies, the British Ftse closed […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: July 1 – 7, 2023

June 30, 2023

Central Banks: Monetary policies to be reviewed in Australia, Poland, and Malaysia. The Bank of Japan releases its quarterly Tankan survey of corporate conditions and expectations. Minutes will be published of the last FOMC meeting. PMI Week: Various and sundry purchasing manager surveys covering manufacturing, services and construction activities will be reported during the week. […] More

New Overnight Developments Abroad - Daily Update

Many Data to Absorb on Final Day of Second Quarter

June 30, 2023

It’s been a good Friday for equities, which closed up by 1.3% in India and 0.6% in China and South Korea. A sharper-than-forecast 1.6% drop of Japanese industrial production in May left the Nikkei with a 0.1% downtick, and Hong Kong’s Hang Seng index also slipped 0.1% on the day. However, share prices are showing […] More

Central Bank Watch

Sweden’s Third Central Bank Rate Hike of 2023 Lifts Such to a 15-Year High of 3.75%

June 29, 2023

The Swedish Riksbank today became the latest central bank to hike its interest rate higher. That central bank’s policy rate had been -0.50% from early 2016 until an initial hike late in 2018 but was still a mere zero percent when raised 25 basis points in April 2022. By end-2022, such had been raised to […] More

New Overnight Developments Abroad - Daily Update

Almost Solid Front of Hawkish Central Bank Policies With a Mounting Focus on Squelching Wage Pressure and Service Sector Prices

June 29, 2023

The leaders of the Federal Reserve, Bank of England, European Central Bank and Bank of Japan participated in a panel discussion yesterday. Powell, Bailey, and Lagarde attempted to outdo each other in displaying their commitment to lowering inflation. Whatever the cost in the short run, each insisted the long-term costs would be even greater if […] More

New Overnight Developments Abroad - Daily Update

Dollar Recovers Some Ground

June 28, 2023

Tuesday’s dollar dip has been reversed, with overnight gains of 1.2% against the kiwi, 0.8% versus the Aussie dollar, 0.5% relative to sterling, 0.3% against the Swiss franc and Canadian dollar and 0.1% versus the euro. Dollar/yen remained steady. The price of Bitcoin dropped back 1.1%, and gold is 0.4% softer. WTI oil is up […] More

New Overnight Developments Abroad - Daily Update

Investor Mood Torn Between Faith That Beijing Will Boost Chinese Growth and the Near Certainty that the ECB and Fed Aren’t Done Raising Interest Rates

June 27, 2023

Chinese Premier Li said Chinese growth appears to have strengthened this quarter and predicted that the government’s 5% growth target for 2023 is attainable. Share prices closed up today by 1.2% in China, 1.9% in Hong Kong, 2.3% in Taiwan and 0.7% in India but also dipped 0.5% in Japan. European Central Bank President Lagarde […] More

New Overnight Developments Abroad - Daily Update

Assessing the Situation in Russia and What It Portends for Global Growth and Inflation

June 26, 2023

U.S. stock futures this Monday are effectively unchanged. Investors are uncertain if the aborted coup in Russia will endure and how the global economy will be affected by Russian political instability.¬†Share prices closed down by 1.5% in China, 0.9% in New Zealand, 0.8% in Taiwan, 0.5% in Hong Kong and South Korea, and 0.3% in […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: June 24 – 30, 2023

June 23, 2023

Central Banks: Monetary policy reviews are scheduled in Colombia, Sweden and Thailand. A summary of the Bank of Japan’s Board meeting earlier this month will be published. Bostic and Williams of the Federal Reserve and Pill and Teneryro of the Bank of England are some of the central bank officials scheduled to speak publicly. The […] More

New Overnight Developments Abroad - Daily Update

Weaker Growth, Lessening Inflation, But Central Banks Not Done Tightening

June 23, 2023

Preliminary purchasing manager survey findings for June revealed a surprisingly steep softening of growth and subsiding inflation. However, inflation remains well above target and is exhibiting particular downside rigidity in the all-important service sectors. A slew of central bank policy reviews over the past two weeks elicited hawkish announcements for the most part. All in […] More

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