Central Bank Watch
A Second Interest Rate Cut in Switzerland
June 20, 2024
The Swiss National Bank’s quarterly review of policy resulted in an as-expected 25-basis point cut in the bank’s interest rate benchmark to 1.25% following an initial reduction also of 25 bps at the prior review in March. A released statement revised down projected CPI inflation from the second quarter of next year through the outermost […] More
New Overnight Developments Abroad - Daily Update
Several Central Banks Held Policy Reviews Today
June 20, 2024
The dollar, equity markets,and 10-year sovereign bond yields rose overnight. The dollar strengthened most sharply against the Swiss franc (0.7%) but also climbed 0.2% relative to the yen and euro and by 0.1% versus sterling and the Canadian dollar. Stock markets closed up 1.4^ in Indonesia, 0.9% in Taiwan, 0.8% in New Zealand, 0.2% in […] More
Central Bank Watch
Smaller Chilean Central Bank Rate Cut
June 19, 2024
The Central Bank of Chile’s policy interest rate was reduced by a further 25 basis points. This cut was smaller in size than the three earlier easings in 2024 that had totaled 225 basis points. Those moves followed ones during the second half of last year totaling three percentage points from a peak of 11.25% […] More
New Overnight Developments Abroad - Daily Update
On this U.S. Holiday, Share Prices Closed up 2.9% in Hong Kong, 2.6% in Taiwan, and 1.2% in South Korea
June 19, 2024
U.S. financial markets will be shut today for Juneteenth Day. A number of Asian stock markets closed sharply higher, reflecting AI euphoria, yesterday’s advance in U.S. share prices, new hope regarding prospects for the Fed cutting interest rates later this year, and Japanese trade data showing stronger-than-expected Japanese export and import growth in May. The […] More
New Overnight Developments Abroad - Daily Update
Monday’s U.S. Equity Rally Extended Abroad Overnight
June 18, 2024
Share prices in the Pacific Rim today closed with gains of 1.0% in Japan and Australia, 1.2% in Taiwan, 0.6% in New Zealand, 0.5% in China and 0.7% in South Korea. Major stock markets so far in Europe’s day have experienced rises of 1.0% in Italy, 0.4% in France and Spain, 0.3% in the U.K. […] More
New Overnight Developments Abroad - Daily Update
Chinese Monthly Data Out and Markets Unmoved by G7 Leaders Summit
June 17, 2024
The dollar firmed 0.3% against the yen, Mexican peso and Turkish lira but fell 0.1% against the dollar. Share prices closed down 1.8% in Japan, 1.4% in New Zealand, and 0.6% in China but are modestly firmer in Europe. U.S. stock futures have hardly moved away from Friday closing levels. 10-year sovereign debt yields climbed […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: June 15-21, 2024
June 14, 2024
Central Banks: Monetary policy reviews are scheduled in China, Australia, Great Britain, Switzerland, Norway, Moldova, Indonesia, Brazil and Georgia. Central Bank policy minutes will be published in Japan and Canada. Goolsbee, Harker, Barkin and Kuglar of the Fed and Nagel and Schnabel of the European Central Bank will be speaking publicly. Holidays and Special Events: […] More
Central Bank Watch
Bank of Japan Takes a Step Closer to Reducing Quantitative Stimulus
June 14, 2024
While not raising its short-term interest rate additionally, the Board agreed by an 8-1 margin to begin lessening monthly asset purchases beginning after its next meeting in July and to give market forces a greater influence in determining Japanese long-term interest rate movements. The short-term interest rate of -0.1% since January 2016 had been increased […] More
New Overnight Developments Abroad - Daily Update
Far-Right Political Ascendance Around World Freaking Out Financial Markets
June 14, 2024
The relationship between investors and left-right political balance is complicated. On the one hand, the very, very rich enjoy the tax policies favored by far-right politicians. At the same time, all market participants acting in concert are clearly unsettled by the swing of voters toward extreme-right politics. The biggest political event of 2024 will be […] More
Central Bank Watch
Interest Rate Cuts in Ukraine and Serbia
June 13, 2024
The National Bank of Ukraine policy interest rate was lowered to 13.0% from 13.5%. In the early months after Russia first invaded Ukraine in February 2022, the interest rate had been catapulted from 10% to 25% and then kept at that level from June 2022 until a reduction in July 2023. Ten percentage points of […] More
