Japanese CPI
Financial Markets Remain Unsettled in Wake of Powell and Biden Speeches
October 20, 2023
Despite conceding that officials are carefully monitoring the recent sharp increase in bond yields, Federal Reserve Chairman Powell’s message remained hawkish overall. Inflation is still too high, a restrictive stance will be needed for quite a while longer, and further rate hikes may be required. The U.S. economy has shown resilience in the face of […] More
Investors Uneasy about Several Recessionary Risks
September 22, 2023
Preliminary September purchasing manager survey results out today attest to deepening economic weakness in Europe. Euroland’s composite PMI reading of 47.1 after 46.7 in August and 47.0 in July are consistent with a 0.4% quarter-on-quarter drop in GDP in 3Q. Such would represent a fourth straight listless quarter following a 0.1% dip in the final […] More
Move Out of Equities Drives Back Long-Term Interest Rates
August 18, 2023
Ten-year sovereign debt yields dropped overnight by 11 basis points in Italy, 10 bps in Germany, France and Spain, 7 bps in Great Britain, 4 bps in the United States and 1 basis point in Japan. Global equity markets experienced their most difficult week in five months. The tide didn’t turn as the week draws […] More
Dollar Firm With Focus on Inflation and Central Bank Policy
July 21, 2023
The dollar rose overnight by 1.2% against the yen, 0.8% and 0.6% relative to the New Zealand and Australian currencies, 0.7% versus the Turkish lira and 0.2% vis-a-vis sterling. The euro kept pace with the dollar, and the Russian ruble jumped 1.1%. These movements correlated well with perceived monetary policy stances. A full percentage point […] More
Weaker Growth, Lessening Inflation, But Central Banks Not Done Tightening
June 23, 2023
Preliminary purchasing manager survey findings for June revealed a surprisingly steep softening of growth and subsiding inflation. However, inflation remains well above target and is exhibiting particular downside rigidity in the all-important service sectors. A slew of central bank policy reviews over the past two weeks elicited hawkish announcements for the most part. All in […] More
Dollar a Bit Weaker
May 19, 2023
The dollar is 0.8% and 0.6% weaker today against the New Zealand and Australian currencies and has also settled back 0.4% against the Chinese yuan, 0.3% versus the Swiss franc, 0.2% relative to the euro and sterling and 0.1% relative to the Canadian dollar and Mexican peso. European equity advances so far this Friday range […] More
Fresh Banking Concerns Eclipse Some Encouraging Purchasing Manager Survey Results
March 24, 2023
Investor sentiment hit another air pocket in Friday’s session, with the banking sector absorbing the greatest shock. For example, the share price of Deutsche Bank AG has tumbled 11%, and overall stock markets in Germany, France, Italy, and Spain show declines currently that exceed 2.5% from Thursday’s close. A catalyst for this flight to safety […] More
Prices, Consumer Confidence, and Recessionary Worries
January 20, 2023
On this eve of the Chinese Lunar New Year holiday, investors are digesting the latest inflation data, perusing reports on consumer confidence, but also continuing to worry about the risk of recession to which many economists in both the private and public sectors ascribe better than even odds. The global economy is coming off a […] More
Heaviest Data Release Day of the Week Before Christmas Yields Mixed Results
December 23, 2022
The dollar traded lower by 0.6% against the kiwi, 0.5% versus the Australian dollar, 0.4% vis-a-vis the loonie, and 0.2% relative to the euro but has also risen by 0.4% against the yen, 0.3% vis-a-vis stereling and 0.1% against the yuan and Swiss franc. Ten-year sovereign debt yields are up five basis points in the […] More
Spooky Friday
October 21, 2022
With Halloween just ten days away, investors are hitting the weekend in a very defensive mood. Philadelphia Federal Reserve President Harker added to the hawkish drumbeat, predicting a Fed rate above 4% by December. Dollar strength against a whole spectrum of other currencies is casting a big shadow over expected corporate earnings in the coming […] More
