ECB
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
Amid Rising Inflation, Some Central Banks React and Others Do Not
April 14, 2022
The weighted DXY dollar index slid 0.3% so far today and is 0.9% below its year-to-date high hit in intraday trading yesterday. Losses of 0.2-0.3% today have occurred against the euro, yen, kiwi, loonie and sterling, while marginal upticks have occurred versus the Swiss franc and Australian dollar. Stock markets closed up 1.2% in Japan […] More
European Central Bank And Czech National Bank
February 3, 2022
The European Central Bank‘s cluster of interest rates (a -0.50% deposit rate since September 2019 and a zero percent refinancing rate and 0.25% Marginal Lending Facility rate since March 2016) were not changed today. Bond purchases as part of the Pandemic Emergency Program will cease after next month however, and quantitative support through the monthly […] More
Omicron, Central Banks, ISIS, Metaverse, OPEC, Russia, Inflation and January PMIs Vying for Market’s Attention
February 3, 2022
The top leader of ISIS and his family have died after a U.S.-led raid in Syria. Geopolitical tensions between the U.S. and Russia remain very high. A total of 3,623 Covid-19 deaths yesterday in the United States were the greatest single-day total in a year. Omicron affected numerous service-sector and composite purchasing manager surveys reported […] More
A Parade of Central Bank Announcements and PMI Releases, Plus Another Strong U.S. Labor Market Indicator
December 16, 2021
The rally late yesterday in U.S. equities carried over into Thursday trading. Share prices rose 2.1% in Japan, 0.8% in China, 0.7% in Taiwan and 0.6% in South Korea. The British, German and French stock markets show gains so far of more than 1.0% today, and the DJIA has gone up by a further 0.6%. […] More
ECB PEPP Tapering to Begin but Precise Change in Pace Not Disclosed
September 9, 2021
The European Central Bank left its -0.50% deposit rate, zero percent refinancing rate and 0.25% marginal lending facility rate unchanged. These record lows have been maintained since March 2016. But an initial step toward tapering quantitative stimulus was announced. While the overall size of the Pandemic Emergency Purchase Program (PEPP) stays at 1.85 trillion euros, […] More
Thursday Spotlight on Central Banks but Attention Also Maintained on Covid and Inflation
September 9, 2021
The dollar fell overnight by 0.3% against the Swiss franc and 0.6% versus sterling but remain unchanged on balance against the euro. Dips of 0.1% occurred against the yen and weighted DXY index. Share prices are higher in the United States and Continental Europe but are down in Great Britain. Earlier in the Pacific Rim, […] More
Financial Markets Continuing to React to American Rescue Plan
March 11, 2021
The $1.9 trillion American Rescue Plan will be signed by President Biden tomorrow. This is an aggressive relief effort aimed predominantly at the middle class and includes another round of direct payments to households, an extension of unemployment benefits, and — something excluded from the CARES act — support for state and local governments. In […] More
No Deals and Many More Covid Cases… Also Several Central Bank Meetings
December 10, 2020
Talks last night between British Prime Minister Johnson and EU Commission President Von Der Leyden failed to achieve a trade deal. The U.S. senate grinch, Mitch McConnell, put the brakes on efforts to nail down a fiscal stimulus. U.S. Covid deaths yesterday nudged above 3k, and that pace has accelerated to 3,340 over the last […] More
ECB Account Identifies Near-Term Outlook Deterioration
November 26, 2020
Minutes from the October 28-29 meeting of the European Central Bank‘s Governing Council warn of a “clear deterioration in the near-term outlook” following the strong third-quarter rebound. Known as the ECB Account, the document cites euro appreciation as well as week demand and lower wage pressures as factors behind very subdued inflation. The second Covid […] More
