German and Euroland ZEW expectations

Wait and See

September 12, 2023

Financial markets are marking time ahead of tomorrow’s ECB rate announcement and press conference and the release of U.S. consumer price, producer price and import price data later this week. In spite of speculation that the peak in central bank interest rates may be close at hand, there have been adverse surprises regarding corporate earnings. […] More

Several Significant Developments for Investors to Process

August 15, 2023

Chinese July data have deepened concerns about the world’s second largest economy. Weaker-than-anticipated on-year growth in China’s retail sales of 2.5% was down from 8.2% in the first half of 2023. Industrial production growth of 3.7% year-on-year also undershot expectations. The unemployment rate edged up to a 4-month high of 5.3%, and fixed asset investment […] More

Global Equities Extend Rise

July 11, 2023

Stock markets in the Pacific Rim rose 1.5% in Taiwan and Australia, 1.7% in South Korea, 1.0% in Hong Kong and Indonesia and 0.6% in China. An exception was a 0.3% dip in Japan’s Nikkei-225. The British FTSE thus far has also slipped 0.3%, but continental European share prices and U.S. stock futures are in […] More

Some Surprises But Not All in Same Direction

April 18, 2023

Chinese data reported this Tuesday exceeded expectations, but officials cautioned that solid recovery isn’t yet firmly entrenched. Real GDP last quarter rose 2.2% on quarter, and the prior quarter’s change was revised to an increase of 0.6% from the earlier estimated zero percent quarterly growth rate. Year-on-year growth of 4.5% in 1Q was up from […] More

Fed’s Two-Day Policy Review Begins with Market Consensus Fixed on Likely 25-Basis Point Interest Rate Increase

March 21, 2023

Steps by big banks to protect vulnerable mid-sized banks and by central banks to ensure ample liquidity have calmed world financial markets even on this day before an expected additional Federal Reserve interest rate hike. The dollar and yen, which prospered from safe haven-seeking capital inflows have settled back. The U.S. currency fell overnight by […] More

Case for Central Bank Authorities to Pause Tightening

February 21, 2023

With markets in the United States and Canada set to reopen following their 3-day weekends, ten-year sovereign debt yields have climbed today by 12 basis points in the U.K., 7 bps in the United States and Italy, and 4 basis points in Germany, France and Spain. The yield on the 10-year Japanese government bond is […] More

Fresh Developments Driving Investor Hopes

November 15, 2022

Equities in the Pacific Rim rose by 4.1% in Hong Kong, 2.6% in Taiwan, and 1.6% in China as yesterday’s talks between the presidents of the United States and China went as well as could have been expected considering their government’s significant differences. The South Korean Kospi rose only 0.2%, and Japan’s Nikkei dipped 0.1%. […] More

Equity Rebound Extended and Dollar Up Somewhat Too

October 18, 2022

With China’s 20th National Congress still ongoing, officials there elected to delay today’s scheduled release of GDP, industrial production, retail sales, unemployment and fixed asset investment. Investors await U.S. industrial production and the National Association of Homebuilders’ housing index, but otherwise it’s been another light day from a data release standpoint. Appetite for risk was […] More

Policy Support Overriding Covid-19 and Geopolitical Concerns at Least for Now

June 16, 2020

The weakness of stock markets early Monday dramatically reversed direction when the Federal Reserve announced an expansion of its corporate bond purchases. That turnaround extended overnight into trading in the Pacific Rim, where markets closed up 4.9% in Japan, 5.3% in South Korea, 3.9% in Australia, 2.4% in Hong Kong, 2.0% in Singapore, 1.8% in […] More