New Overnight Developments Abroad - Daily Update
U.S. Economy Pulling Out Ahead of the Crowd of Other Economies
December 16, 2024
The S&P Global U.S. preliminary composite purchasing managers index jumped 1.7 points to a 33-month high of 56.6 in December. This result far exceeded analyst expectations, led by the service sector whose subindex reached a 38-month high on the prospect of widespread deregulation by the incoming Trump administration. America’s good December report card contrasted with […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: December 14-20, 2024
December 13, 2024
Central Banks: Monetary policies will be reviewed at the Federal Reserve and in Indonesia, Hungary, Georgia, Great Britain, Thailand, Japan, Mexico, Norway, Sweden, Taiwan, the Philippines, Russia and China. The Fed, which is expected to cut its interest, will unveil updated macroeconomic forecasts. Chairman Powell, Bank of England Governor Bailey, Bank of Japan Governor Bailey, […] More
New Overnight Developments Abroad - Daily Update
Mid-Friday Briefing
December 13, 2024
Compared to Thursday closing levels, ten-year sovereign debt yields have risen five basis points in the United States, Germany, Spain and U.K., four bps in Italy, and six bps in France. In spite of higher November CPI, PPI and import price inflation, the Federal Reserve is widely expected to cut its interest rate next Wednesday […] More
Central Bank Watch
Rate Cuts in Euroland and Switzerland
December 12, 2024
A 25-basis point cut in Euroland’s key interest rates including the deposit rate to 3.0% had been widely expected by investors. The European Central Bank statement includes updated macroeconomic forecasts that lower projected GDP growth to 0.7% this year and 1.1% next year as well as total projected CPI inflation to 2.4% in 2024 and […] More
Central Bank Watch
Rate Hikes in Brazil and Ukraine
December 12, 2024
The Central Bank of Brazil’s Selic interest rate was lifted by a greater-than-predicted full percentage point to a one-year high of 12.25%. This more forceful move than previous interest rates totaling 75 bps in September and November, according to a released statement from officials was necessitated by a backdrop of “additional de-anchoring of inflation expectations, […] More
New Overnight Developments Abroad - Daily Update
Divergent Interest Rate Decisions, Geopolitical Concerns, and Higher U.S. PPI Inflation Than Forecast
December 12, 2024
Central bank interest rates have been hiked by 100 basis points in Brazil and 50 bps in Ukraine but were also cut today by 50 bps in Switzerland and 25 bps in Euroland. The threats of coming tariff hikes and other sharp diversions in long-established U.S. policies have other economies around the world on edge. […] More
Central Bank Watch
December 11, 2024
officials at the Bank of Canada reviewed their policy today and announced an as-expected rate cut of 50 basis points to 3.25%. There had also been a reduction of 50 basis points made at the prior review in October and three 25-basis point cuts before that. A peak of 5.0% had been maintained from July […] More
New Overnight Developments Abroad - Daily Update
Investors Relieved after November U.S. CPI Data Arrive in Line With Expectations
December 11, 2024
Investors had expected U.S. consumer price inflation to edge up 0.1 percentage point last month due mainly to energy base effects but were braced for a biggest acceleration that could throw cold water on the likelihood of a further Federal Reserve interest rate cut next week. That possibility didn’t happen. The CPI increased 0.3% on […] More
Central Bank Watch
Armenian Central Bank Interest Rate Cut
December 10, 2024
The Central Bank of Armenia’s refinancing rate was cut another 25 basis points to 7.0%, its lowest level since September 2021 and 350 basis points below the peak of 10.5% maintained from December 2022 until an initial reduction in August 2023. Although CPI inflation had risen from 0.6% in October to 1.4% in November, that […] More
New Overnight Developments Abroad - Daily Update
Data Cyclone
December 10, 2024
This Tuesday was greeted with a heap of price and industrial production data, a downward revision to U.S. unit labor cost growth, Chinese trade figures, and central bank rate decisions in Australia and Armenia. The dollar strengthened overnight by 1.1-1.2% against the Australian and New Zealand currencies, 0.6% relative to the yen, and 0.4% versus […] More
