Chinese corporate profits
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
Fading Hopes That Fed Will Consider a Rate Cut By March
January 29, 2024
Investors are concluding that Wednesday’s Fed Chairman Powell press conference will not signal that a rate cut might be considered as soon as the following FOMC meeting set for March. U.S. GDP growth last quarter surpassed expectations, and the labor market is still too tight. Although the core PCE price deflator put inflation below 3.0%, […] More
Higher Equities, Weaker Bonds, and a Mixed Dollar
March 27, 2023
The tone of equities began weakly overnight in Asia where share prices closed down 1.8% in Hong Kkong, 0.8% in Indonesia, 0.5% in Taiwan and 0.4% in China but brightened in Europe and U.S. stock futures. The German, French, British, Italian and Spanish stock exchanges currently show gains of 0.9% or more this Monday, and […] More
World Financial Markets React to Street Protests in China Against Covid Policy
November 28, 2022
A Fresh burst of risk aversion to start the week sent the dollar up 0.8% against the Australian dollar, 0.7% relative to the kiwi, 0.5% versus the loonie and Chinese yuan, 0.4% vis-a-vis sterling, 0.2% against the yen, and 0.1% versus the Swiss franc. The euro notably edged 0.1% higher against the dollar, aided by […] More
Financial Markets Generally Quiet Ahead of FOMC Meeting and President Biden’s Speech on Wednesday
April 27, 2021
The weighted dollar is trading at its overnight low but down less than 0.1% on balance. The U.S. currency is unchanged against the euro and sterling, up 0.1% relative to the yen and 0.1% softer versus the Swiss franc. U.S. stock futures are little changed. Corporate earnings reports have been mostly solid. Share prices closed […] More
U.S. Stock Futures Down but Dollar Marginally Stronger
March 29, 2021
Few significant developments abroad have been reported this Monday. The biggest story, associated with a bank-intensive drop in U.S. equity futures, has been the the suspected large losses just before the weekend of the Archegus hedge fund, which was believed responsible for some heavy block selling on Friday. The week ahead will be shortened by […] More
Stock Markets and Bitcoin Rise in First Post-Xmas Trading; Dollar Weak but Steady
December 28, 2020
After threatening not to sign the $900 billion U.S. pandemic relief package that extends extra jobless benefits and continues the half on shelter evictions, President Trump did sign the bill over the weekend. A possible federal government shutdown has been averted. Markets remain closed today (Boxing Day) in the U.K., Australia, New Zealand and Canada. […] More
Reopening Fuels Optimism But Escalating U.S./Chinese Political Tensions Introduce Caution
May 27, 2020
Movements overnight in the dollar were mixed, with gains of 0.3% against the yuan, 0.4% relative to the Swiss franc, and 0.1% versus the yen but declines of 0.5% relative to the kiwi, 0.4% versus the euro, 0.3% against the loonie and Australian dollar and 0.1% relative to the peso. European stock markets advanced in […] More
Political Strains Batter Equities Again
January 28, 2019
Prospects weakened over the weekend for a border security deal between President Trump and Congressional Democrats by the February 15th deadline. The president attaches less than even odds to that happening and insists that a wall will be built. The negotiation of withdrawal terms for Brexit is going nowhere. The EU rejects any renegotiation of […] More
Less Volatility Than Earlier in the Week
March 27, 2015
The dollar rose overnight by 0.5% versus the euro, 0.4% against the Australian and New Zealand dollars, 0.3% relative to the Swiss franc, 0.2% vis-a-vis the loonie and 0.1% against the yuan and yen but slipped 0.2 against sterling. Concern has subsided about the impact on oil prices from the air strike on Yemen. West […] More
