A Focus on China and Japan

June 10, 2013

Released Chinese data were not as good as expected. Export growth slowed to a 1.0% on-year pace in May, which was a 10-month low.  Imports were 0.3% lower than in May 2012, and the trade surplus of $20.4 billion was close to expectations. Industrial production growth edged lower to 9.2%. Analysts were predicted 9.3%, same […] More

A Busy Day

May 22, 2013

Many things are happening today.  One spotlight is on central banks.  The BOJ did not change policy of aggressive quantitative easing.  The economic assessment was upgraded, but market players are somewhat disappointed that no concrete modifications were announced to stop the erratic yet sharply rising trend in JGB yields, which have roughly doubled since early […] More

Euro Sharply Higher Against Yen

March 7, 2013

The spotlight today has been on central bank activity. Shirakawa’s outgoing Bank of Japan Board stuck to the status quo, but significant further easing is expected next month from the new BOJ leadership team. The European Central Bank also made no changes but accentuated issues that tend to buoy the euro.  Growth forecasts were lowered, […] More

Confidence Continuing to Build into the New Year

December 19, 2012

An optimistic mood surrounds the fiscal cliff talks. The German IFO business climate index rose to a 5-month high in December despite a softer reading on current conditions. Peripheral sovereign debt yields slipped further in the euro area.  S&P removed the “Selective Default” designation on Greek debt. Japan’s Nikkei soared 2.4%, its best single session […] More

Bank of Japan Preview

July 10, 2012

The Bank of Japan will not immediately join its counterparts in the euro area, China, and Britain, which seemingly eased in coordinated fashion last Thursday.  A two-day meeting of the Bank of Japan Policy Board, which begins Wednesday, will neither cut the interest rate target nor expand quantitative easing.  The target range for the overnight […] More

A Foul Mood to Start the Final Eighth of 2011

November 16, 2011

Investors continue to view European prospects very dimly and to opt for low-risk assets.  This helped the dollar, yen and Japanese bonds but hurt stocks and commodities.  The ECB via the SMP program has reportedly been buying Italian and other troubled debt, but monetary officials continue to oppose expressing a readiness to engaged in “unlimited” […] More

Thank God It’s Friday and a Quiet One at That

May 20, 2011

Not to much is happening this Friday.  No U.S. data releases are scheduled.  The euro has dipped back under $1.43.  The Bank of Japan made no further changes at this month’s Policy Board meeting despite a big drop in the latest all-industry index reading.  French Finance Minister Legarde appears to be the front-runner to succeed […] More

Very Busy Day

February 15, 2011

Central bank decisions have been announced in Japan, Sweden and Turkey.  Euroland fourth-quarter GDP figures were weaker than forecast.  The United States released retail sales, import prices and international capital flows, while Britain reported a 4.0% on-year rate of CPI inflation, most since November 2008 and twice the targeted pace. The dollar is mixed, falling […] More

Awaiting U.S. Jobs Report

November 5, 2010

A mildly firmer dollar reflects posturing ahead of this week’s final big event, not any lessening of cynicism over U.S. dollar policy.  Nowotny of the ECB observed the obvious fact that the Fed and ECB monetary policies are becoming more divergent. The dollar is 0.7% stronger against the kiwi and sterling and up 0.5% versus […] More

Markets Anticipating Lower Interest Rates

October 6, 2010

Stocks advanced further overnight, bond yields fell, and the dollar remained weak across the board as markets look to more central banks easing as the BOJ did yesterday. The Nikkei advanced 1.8%, and the yield on 10-year JGBs fell eight basis points to 0.84%, lowest since June 2003.  However, an unacceptably strong yen, which triggered […] More