Central Bank of Sri Lanka

Fresh Wave of Risk-Aversion: Share Prices Now Following the Slide in Long-Term Interest Rates

July 8, 2021

U.S. stock futures point to a drop of around 1.3% at the U.S. open. Share prices Thursday closed down by 2.9% in Hong Kong, 1.1% in Singapore, 1.0% in South Korea, 0.9% in Japan and 0.8% in China. European stock markets so far have lost over 1.5% in German and the U.K. and more than […] More

Another Down Day Looms in U.S. Equities

May 20, 2021

U.S. stock indices fell on the first three trading days of this week, and futures point to a further slight loss at the open. FOMC minutes from the April 27-28 meeting revealed some committee members itching to begin considering a discussion on when to start tapering stimulus if U.S. data continue to show rapid improvement […] More

Somewhat Weaker Dollar

April 8, 2021

The dollar is trading 0.2% lower against its DXY weighted index and versus the loonie, Swiss franc, sterling, Turkish lira and Mexican peso. Larger drops include losses of 0.6% versus the yen, 0.5% against the kiwi and yuan, and 0.4% vis-a-vis the New Zelanad dollar. No net change against the euro limited the weighted dollar’s […] More

Dollar Up, Equities and Bond Yields Lower, and U.S. Capitol on Alert

March 4, 2021

March 4th was the day U.S. presidents were inaugurated until the 1930s, and there’s internet chatter suggesting a possible reprise of the January 6th attack on the Capitol. Widely anticipated geopolitical traumas rarely seem to happen as planned. A notable exception occurred July 1, 1997, the day that Hong Kong reverted to Chinese rule. That […] More

Investors More Inclined to Taking a Risk

January 19, 2021

Stock markets closed on Tuesday up 2.7% in Hong Kong, 2.6% in China, 1.7% in India, 1.4% in Japan and appear headed for a rise of almost 1.0% on the U.S. open. European markets held back, with upticks so far of just 0.2% in Germany and 0.1% in the U.K. and France. Refuge currencies like […] More

Dollar Up Marginally, Stock Markets Mixed, and Americans Observe Thanksgiving Day

November 26, 2020

The U.S. Thanksgiving holiday is depriving financial markets of some degree of leadership. The dollar overnight drifted up 0.1-0.2% against the euro, loonie, yen, kiwi, Swiss franc and Australian dollar. The U.S. currency rose a bit more against the peso (0.4%) and sterling (0.3%). Stock markets in Asia closed up 1.4% in Indonesia, 1.0% in […] More

Investors Eyeing Three Threats

October 22, 2020

The uncertain U.S. election outcome now just twelve days away continues to have markets on tenterhooks. The final Trump-Biden debate is tonight at 21:00 EDT. U.S. Justice Department officials have found evidence of attempted cyber interference in the result by Iran and Russia. Worsening Covid-19 trends are a second source of investor anxiety. More than […] More

Sharp Equity Declines but Mixed Dollar

August 20, 2020

The U.S. equity market correction triggered by downbeat FOMC minutes┬áreleased yesterday afternoon set the tone for overnight losses in European and Asian markets where bourses tumbled 3.7% in South Korea and 3.3% in Taiwan and by at least 1.0% in China, Hong Kong, Japan, Singapore, India, Germany, France, Italy, U.K., and Spain. Indonesia’s market did […] More

Sri Lanka’s Fifth Central Bank Rate Cut of 2020

July 9, 2020

The Central Bank of Sri Lanka became the latest monetary authority to slash interest rates. The Standing Deposit Facility and Standing Lending Facility rates were each reduced by 100 basis points to 4.5% and 5.5%, respectively. Earlier this year, cuts of 25 bps in March and April were sandwiched between 50-basis point cuts in January […] More

Covid Risk and Political Uncertainty on the Market’s Mind

July 9, 2020

The global count of Covid-19 cases rose 216 thousand in the past 24 hours to roughly 12.2 million. In that span, there was a record 62 thousand rise in U.S. reported cases, even as President Trump threatened repercussions to school districts that do not reopen in the fall. The Covid death count stands just above […] More

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