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Market Reaction Muted to Missile Strike in Poland
November 16, 2022
A Russian-made missile struck a grain facility inside Poland, but it remains unclear who fired that round or from where such came. World leaders were fortunately already assembled in Bali, Indonesia, for the Group of Twenty annual summit, and an emergency meeting to forestall a direct Nato-Russian military conflict has so far prevented an outsized […] More
Inflation and Russian Invasion of Ukraine Casting Longer Shadows
March 17, 2022
Equities behaved in a widely diverse way overnight after the Fed enacted the first of many rate hikes. Share prices closed up by 7.0% in Hong Kong, 3.5% in Japan, 3.0% in Taiwan, 1.8% in India, 1.7% in China, and 1.1% in Australia. But stock markets so far are down this Thursday by 1.0% in […] More
China Reports Economic News; U.S. MLK Birthday Holiday Squelches Market Response
January 17, 2022
The U.S. observance of Martin Luther King Jr.’s birthday points to light market trading volume this Monday and will limit any immediate reaction to the release of Chinese data covering fourth-quarter GDP and capacity usage, December retail sales, industrial production, property prices, fixed asset investment, unemployment or the first interest rate cut by the People’s […] More
Many Data Already Reported… Now Waiting for U.S. CPI and FOMC Minutes
October 13, 2021
The dollar slipped overnight by 0.3% against the Swiss franc and sterling, 0.2% versus the euro, peso and on a DXY weighted basis, and 0.1% relative to the Canadian dollar, Chinese yuan, and Turkish lira. Ten-year sovereign debt yields have dropped four basis points in Germany and five bps in the U.K. but only a […] More
Dollar Starting Week on a Rising Note, whereas Share Prices and Sovereign Debt Yields Move Lower
July 12, 2021
The dollar climbed 0.6% against the Mexican peso and New Zealand dollar, 0.5% versus the Australian dollar, 0.4% vis-a-vis the loonie, 0.3% relative to sterling an 0.1% against the yen but is steady versus the euro and yuan. Stocks in the Pacific Rim had closed up 2.3% in Japan, 0.9% in Taiwan, 0.8% in Australia […] More
Awaiting U.S. Import Prices, Jay Powell’s Speech and Fed’s Beige Book
April 14, 2021
The dollar fell 0.7% overnight against the New Zealand dollar and 0.5% relative to the Turkish lira and Australian dollar. But more senior dollar relationships such as the euro, yen, Swiss franc, sterling, and yuan, the dollar is barely changed and down just 0.1% in weighted terms. For the first time in years, markets have […] More
Tension on Several Fronts but Market Moves Muted Overnight
January 14, 2021
President Trump has been impeached by the House of Representatives for the second time in 13 months. The Senate trial will commence soon after he leaves office. New Covid cases and deaths remain highly elevated in many countries. The British daily death toll set a record yesterday. Bank of Japan Governor Kuroda said monetary stimulus […] More
Optimism from the Vaccine and Policy Developments
December 9, 2020
Once again stocks have risen and the dollar fallen from optimism that the arrival of vaccines means the beginning of a return to a better normal. The focus on vaccines coincides with difficult trends in Covid cases, deaths and hospitalizations. New cases in the past 24 hours exceed 600k globally and 216k in the United […] More
Lower Bond Yields, Mixed Dollar and Softer Equities in Face of Relentless Covid
November 12, 2020
Covid cases in the last 24 hours exceeded 600k and 140k globally and in the United States. Global and U.S. deaths from the illness over the past two days averaged more than 10k and 1.45k per day. While vaccine development seems to be making good progress, a new worry is that Covid’s ability to mutate […] More
Monetary Efforts to Counter Covid-19 Economic Damage All in Vain
March 16, 2020
The contagion news over the weekend was very bad. Italy suffered a bigger daily jump in deaths than even China had, and all evidence suggests that governments that did not test extensively for the virus at the first sign of trouble have brought upon their countries larger humanitarian disasters. The United States seemingly falls into […] More
