U.S. small business sentiment
Reevaluating Scope for Lessening Monetary Restraint
January 9, 2024
Ten-year sovereign debt yields climbed five basis points overnight in Germany, France and Spain and by four bps in the United Kingdom. The 10-year Treasury yield is unchanged from Monday’s 4.03% closing level but 24 basis points higher than its close on December 27th. Inflation around the world has fallen significantly below peak, but doubts […] More
Federal Reserve Tightening Imposing Strain on Global Economy
October 11, 2022
When Federal Reserve officials began to raise interest rates in mid-March of this year, they were already far behind the eight ball, especially since tightening began from an historically low federal funds target of zero to 0.25%. By the time of that belated reaction, U.S. inflation was at 7.9% and 6.3% measured by the consumer […] More
Awaiting Powell Confirmation Hearing and a Disturbing Covid Data Point
January 11, 2022
There’s been no significant developments on the economic data front today. Investors are looking ahead to tomorrow’s data menu featuring U.S. consumer prices, Chinese CPI and PPI, Euroland industrial production and the Japanese current account and economy watchers index. The market’s immediate focus now is on Fed Chairman Powell’s confirmation hearings today before the Senate […] More
Persistent Inflation Concerns Upsetting Equity Markets and Dollar to Lesser Extent
May 11, 2021
A sampling of Asian stock markets suffered loses Tuesday of 3.8% in Taiwan, 3.1% in Japan, 2.0% in Hong Kong, and 1.2% in Singapore and South Korea. Australia’s market fell 1.1%, and in Europe, markets are down currently by between 1.4% and 2.3% in Switzerland, Spain, Italy, France, the U.K. and Germany. Technology stocks have […] More
Weak Data and Revised Forecasts Deliver A Reality Check
June 9, 2020
The mood of investors has turned bearish again. The 10-year U.S. Treasury yield fell four basis points and is 8 bps below its recent high. 10-year Japanese JGB and British gilt yields slipped 3 and 1 basis points overnight. The price of WTI oil settled back 0.6%, while that of gold, which benefits from risk […] More
Markets Unsure of Implications of Reopening Economies
May 12, 2020
Markets seems to have entered an indecisive phase as politicians weigh pros and cons of reopening business activities. The dollar lost modest ground overnight, falling 0.2% against the yuan, yen, euro and sterling and by 0.1% relative to the Swiss franc. The dollar fell more significantly against the kiwi (0.6%) and Australian dollar (0.4%) but […] More
Dollar and Stock Markets Up
November 12, 2019
The dollar traded up overnight by 0.4% against the kiwi, 0.3% relative to the Swiss franc, 0.2% vis-a-vs the euro, loonie and sterling, and 0.1% against the Australian dollars. Stock markets in the Pacific Rim advanced by 0.8% in Japan, South Korea, Taiwan and Singapore and by 0.5% in Hong Kong and Indonesia. India is […] More
Safe Haven Assets in Lessening Demand
September 10, 2019
Some of the recent uncertainties for investors seem somewhat less anxiety-provoking. British Prime Minister Boris Johnson seems to now be intent on working out a Brexit deal with the EU instead of a no-deal exit. Reports have surfaced that the Merkel government in Germany is considering a relaxation of its rigid insistence on balancing the […] More
Dead Cat Bounce
May 14, 2019
The escalation of trade war hostilities between the U.S. and China rattled global financial markets significantly yesterday, but today’s mood has been more encouraging. Share prices in Europe are up so far by 1.2% in France, 1.0% in the U.K. and Italy, and 0.9% in Germany. In Asia, equities fell 1.8% in Hong Kong, which […] More
Sterling Takes a Hit… Brexit Not Going Well
March 12, 2019
Sterling depreciated 0.9% overnight against the dollar, which is otherwise down 0.2% against the yuan and Swiss franc and by 0.1% vis-a-vis the euro and kiwi. The dollar is also unchanged relative to the yen, loonie, Australian dollar and Mexican peso. Prime Minister May’s attorney general said changes in the handling of the Irish border […] More
