Chinese CPI and PPI

Another Weak Round of Chinese Price Data

July 10, 2023

Sharp moves last Friday in equities (down) and the dollar (up) have been only marginally reversed this morning. Share prices in the Pacific Rim closed up 0.6% in Hong Kong and 0.2% in China and Indonesia but dropped 0.6% in Japan and 0.5% in Australia. The German, French and Italian stock exchanges are up 0.6% […] More

Little Market Reaction to Trump’s Indictment on Mishandling Classified Documents

June 9, 2023

The story of former U.S President Trump’s second indictment on criminal charges broke late yesterday. This development is unlikely to damage his prohibitive opinion poll lead among Republican candidates for that party’s presidential nomination next year, nor has it impacted financial markets, which are now awaiting important cues next week from central banks meeting in […] More

Lower Inflation But Spreading Troubles for Regional Banks

May 11, 2023

Investors remain edgy. PacWest is the latest bank to report a big exodus of deposits. Disney stock dropped sharply. The standoff in the debt ceiling talks hasn’t shown any sign of cracking. Equities closed down 0.8% in China, Indonesia, Taiwan and Australia. The German Dax and Dow Jones Industrials are also off 0.8% so far […] More

Equities and Dollar Slip, Japanese Growth Revised Lower

March 9, 2023

With Fed Chairman Powell’s two-day testimony over and the Beige Book published, the dollar fell overnight by 0.7% against the yen, 0.3% versus the Swiss franc, kiwi, Aussie dollar and sterling and 0.2% relative to the euro and Chinese yuan. Powell left scant doubt that multiple additional interest rate hikes like ahead, and the Fed’s […] More

Expectations of Further Disinflation Depress the Dollar to 7-Month Weighted Low

January 12, 2023

The dollar plunged 1.4% overnight against the Japanese yen and edged another 0.1% lower relative to the loonie and euro. The weighted DXY dollar index is hovering near its lowest levels since early June and around 10% below last year’s subsequent high. U.S. December CPI inflation figures, due in around 20 minutes, are widely projected […] More

The Morning After

November 9, 2022

The U.S. midterm elections had been among the most anticipated event of 2022 among financial market participants. What is known at this writing is that Republicans retook control of the House of Representatives and will have a seat majority of 25 or more. Control of the Senate remains uncertain, and composition has change little from […] More

Weeks’ End Finds Investors Willing to Take Some Risk

September 9, 2022

Early in the U.S. trading day, the rises in key U.S. stock market indices range from 0.5% in the DOW to 1.2% in the Nasdaq. Share prices in the Pacific Rim had closed up 2.7% in Hong Kong, 1.2% in Taiwan, 0.9% in Singapore, 0.8% in China, 0.7% in Australia and 0.5% in Japan, and […] More

Inflation Rising, Central Bankers Reacting, Dollar Firmer, and Equities Troubled

June 10, 2022

The dollar rose overnight by 0.4% against sterling and 0.2% relative to the euro, Swiss franc, and in weighted terms. The dollar alternatively dropped against the ruble, Australian and New Zealand dollars and Japanese yen. Following yesterday’s sharp drop in U.S. share prices, equities fell 1.5% in Japan, 1.3% in Indonesia and Australia, 1.6% in […] More

A Day of Bottom-Fishing

March 9, 2022

It’s been a rough period for financial market participants since Russia invaded Ukraine on February 24. After large rises in sovereign debt yields, commodity prices, and the dollar juxtaposed against steep drops in equities, investors this Wednesday have taken their cue from the price of oil and pulled back from recent extremes. At $120.80 per […] More

More Signs of Intensifying Inflation and Another Central Bank Rate Hike

November 10, 2021

The dollar didn’t move much right after U.S. CPI data were released but had already advanced by 0.0.4% overnight on a weighted basis before then to within 0.2% of its 52-week high. Dollar gains amounted to 0.5% against the kiwi and sterling, 0.4% relative to the euro and yen, and 0.3% vis-a-vis the Swiss franc […] More