Deeper Analysis
September 2024 in Figures
September 30, 2024
Quite a few central banks changed interest rates during September, mostly in the direction of lessening restraint. Reductions of 50 basis points were done by the Federal Reserve, Swedish Riksbank, and monetary authorities in Hong Kong, the U.A.E., Bahrain, Honk Kong and Colombia. Central banks that cut interest rates by 25 bps included those Chile, […] More
New Overnight Developments Abroad - Daily Update
Quarter-End and Supercharged 8.1% Leap in Chinese Equity Market Sucks the Energy Out of Other Stock Markets
September 30, 2024
Just prior to China‘s week-long national holiday, more measures were announced to support that economy’s depressed housing market and help secure this year’s overall goal of 5% GDP growth. The release of September purchasing manager surveys suggest that the stimulus is badly needed. The government-compiled NBS non-manufacturing PMI printed at a 21-month low of 50.0, […] More
Uncategorized
Next Week’s Menu: September 28-October 4, 2024
September 27, 2024
Central Banks: Monetary policies are to be reviewed in Romania, Poland and Iceland. The Bank of Japan’s quarterly Tankan survey of corporate conditions and expectations will be published. So will a summary of this month’s Board meeting. Chairman Powell heads a long list of Fed officials slated to speak publicly that includes Williams, Collins, Barkin, […] More
Central Bank Watch
Mexican Central Bank Cut
September 27, 2024
The Bank of Mexico‘s policy rate was cut late yesterday to 10.5% from 10.75%. That was the third reduction following others of 25 bps done in August and March of this year. A peak of 11.25% had been maintained for a full year from March 2023 until March 2024. Core Mexican CPI inflation is now […] More
New Overnight Developments Abroad - Daily Update
China and Japan Grab the Early Focus, but U.S. Personal Consumption and PCE Deflation Are Now On Deck
September 27, 2024
China’s previously announced 50-basis point cut in the required bank reserve ratio and several interest rate cuts took effect today, lending further support to that country’s stock market. The Shanghai Composite index and Hang Seng index of Hong Kong closed 2.9% and 3.6% higher today. The need for policy stimulus was underscored by the release […] More
Central Bank Watch
Switzerland’s Third Interest Rate Cut since March
September 26, 2024
The Swiss National Bank today announced a policy rate reduction of 25 basis points to 1.0% that follows similar-sized cuts in June and March. The SNB only reviews policy on a quarterly basis. At 1.0%, the new policy rate level drops to its lowest level since March 2023. As before, officials used this opportunity to […] More
New Overnight Developments Abroad - Daily Update
Reaction to Promised Chinese Stimulus Lifts Confidence in Other Markets
September 26, 2024
Equity markets around the Pacific Rim enjoyed a powerful rally Thursday, closing up 4.2% in Hong Kong, 3.6% in China, 2.9% in South Korea, 2.8% in India and Japan, 2.1% in New Zealand and 1.0% in Australia. The upward momentum carried into Europe where the German, French, Italian and Spanish stock markets current show gains […] More
Central Bank Watch
Central Bank Rate Cuts in Sweden and the Czech Republic
September 25, 2024
The Swedish Riksbank’s cut to 3.25% followed similar moves done in May and August and was accompanied by a notably dovish statement of explanation. If the outlook for inflation and economic activity remains unchanged, the policy rate may also be cut at the two remaining monetary policy meetings this year. A cut of 0.5 percentage […] More
New Overnight Developments Abroad - Daily Update
Rate Cut Fever
September 25, 2024
In the wake of a disappointing and unexpected relapse in U.S. consumer confidence in the Conference Board’s monthly measure this month, financial markets are attaching greater odds to another interest rate cut by the FOMC at its early November meeting following the sizable 50-bp initial reduction made earlier this month. The consumer sentiment index printed […] More
Central Bank Watch
Downward Rate Cycle Resumed in Hungary
September 24, 2024
From a base rate peak of 13.0% maintained for nearly a year, officials initiated a declining trend eleven months ago that methodically made cuts at ten straight monthly meetings until the one in August when the rate was kept at 6.75%. CPI inflation had crested slightly above 25% in January 2023 and fallen to 9.9% […] More
