IFO
Wide Spectrum of Developments Elicit Financial Market Response
July 25, 2017
In an escalated barrage of complaints, President Trump has lashed out at a range of adversaries: Attorney General Sessions, Congressional Republicans, Hillary Clinton, Bob Meuller, and the press. A vote on repealing the Affordable Care Act seems likely in the Senate this afternoon. The Federal Open Market Committee began a two-day policy meeting today. U.S. […] More
Tuesday-Wednesday Two-Day Highlights
March 23, 2016
The dollar on Wednesday extended Tuesday gains and has appreciated since the Monday closing by 1.3% against sterling, 0.7% vrsus the yen, 0.9% vis-a-vis the kiwi, 0.5% relative to the euro and Swiss franc, and 0.3% against the Chinese yuan. Chicago Fed President Evans made bullish remarks about the likelihood of more interest rate hikes […] More
Fresh Distractions
December 18, 2014
The Yellen press conference gave reassurance to a market unsure of the direction of Fed policy, and it triggered strong gains in stocks and the dollar plus a rebound in long-term interest rates. But now the market has moved on to new distractions. The Swiss National Bank at an unscheduled meeting and just a week […] More
IFO Claims "The German Economy is No Longer Running Smoothly"
September 24, 2014
The IFO Institute’s German business climate index dropped 1.6 points to a 17-month low of 104.7. Such has dropped 6.5 points since April. Current conditions slid 0.6 points to 110.5 in September, down from 115.3 last April. Expectations fell 2.4 points to 99.3, 9.5 points weaker than last January. Manufacturing, construction, retail and especially wholesaling, […] More
Attention on FOMC and Davos
January 25, 2012
The annual World Economic Forum in Davos opens today with a speech from German Chancellor Merkel. A PSI agreement between Greece and holders of its debt still hasn’t been reached. The FOMC releases its policy statement at 17:30 GMT. This will be followed by forecasts including the interest rate expectations of individual members, and Fed […] More
France and German Still Apart over EU Debt Bailout Plan
October 21, 2011
The dollar has risen 0.4% against the euro, 0.3% versus the kiwi, and 0.2% relative to the Australian and Canadian dollars. It’s unchanged against sterling and the yuan and down 0.2% versus the yen and by 0.1% against the Swissie. These moves suggest lingering risk aversion. And why not? French President Sarkozy and German Chancellor […] More
Markets Accepting Greek Rescue Plan So Far
July 22, 2011
Markets so far have not challenged the new EUR 109 billion EU rescue plan for Greece, which entails selective defaults, a doubling of loan maturities, and reduced lending rates. Attention now turns to the U.S. debt ceiling negotiations, where time remaining to do a deal is getting dangerously short. Stocks in the Pacific Rim climbed […] More
Markets Watching Summit of EU Leaders
March 25, 2011
Commodity currencies fell Friday after rising Thursday. New Zealand, Australian and Canadian dollars are 0.5%, 0.3% and 0.2% lower. A carry trade-friendly environment in which low-yielding currencies fund such positions is taking shape. The U.S. dollar rose 0.6% against the Swiss franc and 0.4% relative to the yen. The dollar elsewhere is up 0.1% against […] More
Geopolitical Tensions Boost Commodity Prices
February 21, 2011
North American markets will be closed today to commemorate President’s Day in the United States and Family Day in Canada. Wintry weather has returned to the Northeast. China too has caught the contagious bug of social unrest. President Hu urged tighter controls of the internet. High food costs, as in the middle east, have been […] More
Muted Reaction to Large Downgrade of Irish Credit Rating
December 17, 2010
Moody’s credit rating service knocked down Ireland’s rating by five notches to Baa1, just three steps above investment grade, and left the outlook at “negative,” thus signaling the possibility of an additional downgrade. The dollar nevertheless fell 0.5% against the euro and 0.4% relative to the Swiss franc. The move reflects 1) a further improvement […] More
