Reserve Bank of New Zealand
Extreme Stock Market Volatility in China, Central Bank News in New Zealand, India and the U.S., and Historic Storm Front Heading for Florida
October 9, 2024
The Shanghai Composite equity index tumbled 6.6% today, more than reversing yesterday’s 4.6% advance. China’s finance minister reportedly will announce a set of fiscal stimulus measures on October 12, but investors doubt such will amount to what that economy currently needs. The Reserve Bank of New Zealand’s Official Cash Rate was cut at today’s scheduled […] More
New Zealand’s First Interest Rate Cut of the Cycle
August 14, 2024
There’s been a 25-basis point reduction in the Reserve Bank of New Zealand’s official cash rate to 5.25%. Its the first easing of the cycle and was not widely expected by analysts. “Surveyed inflation expectations, firms’ pricing behavior, headline inflation, and a variety of core inflation measures are moving consistent with low and stable inflation,” […] More
Heavy Diet of Price and GDP Growth Data
August 14, 2024
The dollar had lost 0.4% against the euro and 0.2% versus the Swiss franc and Chinese yuan an hour and a half into the U.S. trading day this Wednesday. Larger net movements of -1.0% and +1.0% had been clocked against the Mexican peso and New Zealand dollar, while values of the yen, sterling and Canadian […] More
Markets Okay With Powell’s Policy Message and Ongoing U.S. Political Strife
July 10, 2024
In Senate testimony yesterday, Fed Chairman Powell hardly deviated from the June FOMC meetings signal. Officials want to be more sure that U.S. inflation is returning to the 2% target in a sustaining way before starting to lessen their restrictive stance. Compared to information covering the first quarter of 2024, inflationary pressures and labor market […] More
Central Bank News and Released Data Share Wednesday’s Spotlight
May 22, 2024
The dollar continues to trade buoyantly, firming overnight by 0.3% against the yen, 0.4% versus the Swissy, and 0.2% relative to the euro and Canadian dollar. Ten-year sovereign debt yields are higher, led by an 11-basis point jump in British gilts following higher-than-projected CPI inflation last month of 2.3% but also including rises of six […] More
Bad U.S. CPI News Impacts Financial Markets Immediately
April 10, 2024
U.S. consumer price inflation in March exceeded expectations and continued a 2024 pattern of disappointment for investors hoping to see the Federal Reserve lower interest rates. In response, The weighted DXY dollar index is 0.8% above Tuesday’s closing level. The greenback rose 1.4% and 1.0% against the Australian and New Zealand dollar, 0.9% versus the […] More
Ungovernable U.S. Congress Elevates Uncertainty But Dollar Softens Only Modestly
October 4, 2023
In a startling political development, the U.S. House of Representatives has no Speaker, and it could be quite a while before that critical vacancy is filled. Without that critical step, Congress will be rendered impotent. Ordinarily such a crisis might be expected to weigh discernibly on the dollar, but the other force strongly at play […] More
Asian Growth Concerns.. British CPI and Euroland GDP Figures Release.. And Waiting for FOMC Minutes Due Later Today
August 16, 2023
The Chinese economy remains a concern that weighing on its regional neighbors as well. Property prices in China were 0.1% lower in July than a year earlier. That’s follows zero percent in the second quarter and disappointing retail sales, industrial production, corporate investment, and unemployment data reported yesterday. Equity markets today tumbled 1.3% in South […] More
New Zealand Official Cash Rate Left Unchanged
July 12, 2023
As expected, the Reserve Bank of New Zealand’s scheduled policy review ended with no change in the 5.5% Official Cash Rate level but a pledge by officials to keep their policy stance restrictive for the foreseeable future. Beginning with a doubling of the OCR in October 2021 to 0.50%, the rate was increased at a […] More
Wednesday Double Feature: U.S. CPI Release & Publication of Fed Beige Book
July 12, 2023
Stock markets overnight fell 0.8% in Japan and China but in Europe thus far have climbed by 0.5% (Spain) to 1.2% (Germany). Yesterday’s U.S. share price gains have been modestly extended by U.S. futures. Ten-year sovereign bond yields are lower by 4 basis points in the U.K. and Italy, 3 basis points in France and […] More
