Euroland current account
Seemingly Contradictory Themes
February 20, 2024
Contradictory financial news headlines this Tuesday do not paint a consistent story. For a couple of months, Fed watchers with encouragement from top FRS officials have been trying to discern when and how quickly interest rates will be lowered. Out of the blue today, there’s a headline that the highly credentialed economist and former Treasury […] More
A Further Surge in Market Interest Rates Ahead of Biden & Powell Speeches Later Today
October 19, 2023
The 30-year Treasury yield jumped to a new high overnight of 5.07%, and the 10-year Treasury gained 7 basis points and is within 3 basis points of 5.00% versus 3.68% at the start of 2023. Surging interest rates continue to drain enthusiasm from stocks. Share prices overnight tumbled 2.5% in Hong Kong, 1.9% in Japan […] More
Few Data Releases on Another Late-Summer Day
August 22, 2023
In overnight financial market action, equities tried to muster a rally. Markets in the Pacific Rim closed up 1/0% in Hong Kong, 0.9% in Japan and China, and 0.7% in Indonesia, and the German DAX, Paris CAC, Spanish IBEX and Italian borsa are each up around 1.0%. U.S. stock futures are up to a lesser […] More
Weighted DXY Dollar Index Climbs Back Above 100 Level
July 20, 2023
Against specific other currencies, the dollar recovered overnight by 0.5% against sterling,0.4% vis-a-vis the Swiss franc, 0.3% versus the Mexican peso, 0.2% relative to the euro and yen, and 0.1% against the loonie and kiwi. A six-basis point rise in the 10-year U.S. Treasury yield eclipsed today’s one-basis point increases in the comparable German bund […] More
Equity Slide Gets Extended
February 17, 2023
After decelerating in many countries during the final months of 2022, inflationary pressures intensified last month, and it didn’t take long for U.S. monetary officials to ramp up the projected path of interest rate hikes during the first half of this year. Federal Reserve District Presidents Mester of Cleveland and Bullard of St. Louis each […] More
Contrasting Concerns Among Central Bankers and Financial Market Investors
January 19, 2023
As often is the case, the World Economic Forum in Davos has thrust central bank policies into the spotlight. The primary concern of monetary policymakers remains inflation. Federal Reserve District Presidents Mester of Cleveland and Bullard of St. Louis endorsed a need to crank the federal funds rate target above 5.0%. European Central Bank President […] More
Dollar and Sovereign Debt Yields Lower, while Equities Rebound
November 22, 2022
The dollar fell overnight by 0.8% against the Swiss franc, 0.5% versus the yen and sterling and 0.3% relative to the euro, Aussie dollar and loonie. Ten-year sovereign debt yields dropped six basis points in the U.S., four bps in the U.K. but just a basis point in Germany. The DOW and S&P 500 are […] More
Large Jump in European Long-Term Interest Rates
September 20, 2022
Today is the Astart of the FOMC’s sixth scheduled policy review in 2022. A third straight 75-basis point hike to a range of 3.0-3.25% is anticipated, with the announcement due Wednesday at 14:00 EDT (18:00 GMT). Meantime, officials at the Swedish Riksbank today exceeded street expectations with a policy interest rate hike of a full […] More
Dollar Gain Fueled by Higher Interest Rates, but Stocks and Bitcoin End Week on Very Sour Note
August 19, 2022
Ten-year sovereign debt yields soared overnight by 13 basis points in Germany and the U.K. and by 8 bps in the United States. A parade of remarks from Fed officials to dissuade any thought of an early end to aggressive monetary tightening was backed up by hawkish FOMC minutes released this week. The dollar appreciated […] More
Elevated Price Data, Weak Consumer Confidence, and Changing Central Bank Rate Expectations
July 20, 2022
The dollar had retreated in recent sessions but has rebounded 0.3% so far today against the euro and versus the DXY weighted index. The dollar also strengthened overnight by 0.2% against the Swiss franc, Chinese yuan and Turkish lira and by 0.1% versus sterling. The yen and Aussie dollar are steady, and the greenback dropped […] More
