Australian GDP
Financial Market Risk Aversion Persisting
September 4, 2024
Equity markets slumped today by 4.5% in Taiwan, 4.2% in Japan, 3.2% in South Korea, 1.1% in Singapore and Hong Kong, and 0.7% in China. Major European stock markets are down around 0.5-1.0%, and U.S. futures point to a further decline, led by the tech sector. Nvdia, for instance, shows a pre-market slide of 2.1%. […] More
Another Sign of Cooler U.S. Growth, Which Isn’t an Entirely Unwelcome Thing
June 5, 2024
ADP’s monthly calculation of U.S. private-sector employment growth rose by a less-than-anticipated 152k last month. That constitutes the smallest gain since +111k in January. Composite and service-sector purchasing manager readings for the euro area in May of 52.2 (a one-year high) and 53.2 (a 3-month low but the fourth straight score above 50) appear to […] More
Dollar Begins March with a Decline, and Asian Equities Buoyed by Stronger-than-Expected Chinese Growth
March 1, 2023
The dollar fell back overnight by 1.0% against the euro and Chinese yuan, 1.5% versus the kiwi, 0.8% relative to the Australian dollar, 0.7% vis-a-vis the Swiss franc, 0.5% against the Japanese yen, 0.4% relative to the Canadian dollar and Mexican peso, and 0.3% versus sterling. The relaxation of Covid restrictions gave China’s economy a […] More
Hawkish Remark from Powell and Plenty of More Data to Absorb as December Kicks Off
December 1, 2021
Fed Chairman Powell signaled that a faster tapering of Fed quantitative stimulus will be considered at this month’s FOMC meeting. The U.S. economy is showing resilience, and the risk is rising of higher inflation expectations. The dollar dipped 0.1% on a weighted basis overnight. Equities, 10-year sovereign debt yields, and the prices of oil and […] More
Afghanistan, Covid, and August Purchasing Manager Surveys
September 1, 2021
On this 82nd anniversary of the start of World War II, U.S. military forces have left Afghanistan, creating a whole new source of geopolitical uncertainty. The rapidly spreading Delta Variant of the Covid-19 pandemic remains the dominant economic and political wild card. There were over 160k newly identified U.S. cases of Covid yesterday, and almost […] More
Equities Still Well Bid for the Most Part
September 2, 2020
Fed Governor Brainard’s call for more fiscal and monetary stimulus encouraged the risk appetite of investors overnight especially in European trading. Ten-year German bund and British gilt yields fell by 3 basis points each, and stock markets have risen by 2.3% in France and Germany, 2.2% in Italy, 1.7% in Switzerland, and 1.6% in Great […] More
U.S. Urban Protests Persist but So Does Equity Rally
June 3, 2020
U.S. city protests extended last night into an eight day but became more peaceful. Moreover, investors continued to buy up stocks in anticipation of business reopening. The rise in share prices continues to be a global phenomenon and not limited to the United States. In the Pacific Rim, share prices rose Wednesday by 3.4% in […] More
Tuesday’s Resilience in U.S. Stocks Doesn’t Prevent More Weakness in Asian and European Share Prices Today
September 5, 2018
Global investors are nervous for several reasons: Emerging market economies squeezed by trade tensions and Fed tightening. The possibility of a U.S. government shutdown over Trump’s insistence on funding for a Mexican border wall. A new book depicting the Trump Administration on the verge of a nervous breakdown. Unresolved geopolitical hot spots. Seasonal concerns. In […] More
A Focus on Central Banks
September 7, 2016
Money markets are discounting only a one in four likelihood that the fed funds rate gets hiked on September 21 despite hawkish remarks overnight from San Francisco Fed President John Williams, who voiced confidence in current U.S. economic conditions and opined that moving sooner is better than doing so later. The Fed’s Beige Book of […] More
PMI Report Card and Other News
June 1, 2016
Today is the first day of June, a month that sees the ECB Governing Council meet tomorrow and both the FOMC and BOJ Board hold policy meetings at mid-month. Markets only discount a one in four chance of Fed tightening this month but more than even odds for an interest rate increase by the July […] More
