Stagflationary Concerns February 27, 2025 The investment community remains concerned that President Trump’s revolutionary policy agenda, which is proceeding at Blitzkrieg speed, will introduce upside inflationary risks and downside growth risks. The concerns are limited to the U.S. economy. Europe is likely to fair even worse and possibly Asia, too. The disparate possibilities are reflected…
Better Tone in World Equity Markets February 26, 2025 Equity markets in the Pacific Rim rallied 3.3% in Hong Kong, 1.2% in New Zealand and 1.0% in China. Stock markets in the euro area’s four biggest economies so far today are showing net gains of at least 1.0%, while U.S. stock futures and the British…
A Third South Korean Central Bank Rate Cut February 25, 2025 South Korea’s Base Rate peak of 3.5% had been maintained from January 2023 until an initial cut last October. That incremental reduction of 25 basis points was followed by another in November but not changed at this year’s first Bank of Korea policy review….
Unease about the Future February 25, 2025 Equities this Tuesday did poorly in the Pacific Rim, closing down 2.4% in Indonesia, 1.8% in New Zealand, 1.4% in Japan, 1.3% in Hong Kong, 1.2% in Taiwan, 0.8% in China and 0.6% in South Korea. Digital money experienced a stellar 2024 but now two months into 2025…
Worst Case German Election Result Averted February 24, 2025 (203) The German DAX index rallied 0.9% so far on a day that saw many Pacific Rim stock markets falter, including declines of 1.8% in New Zealand, 1.1% in India, 0.7% in Taiwan, 0.6% in Indonesia and Hong Kong, 0.2% in China. U.S. stock futures are…
Next Week’s Menu: February 22-28, 2025 February 21, 2025 Central Banks: Interest rate settings will be reviewed at central banks in Kyrgyzstan, Israel, South Korea, Hungary and Thailand. Minutes from the last European Central Bank Governing Council meeting will be published. Pill and Dhingra of the Bank of England and Hammack, Bostic, and Harker of…
Trump and Ueda Comments and Early February PMI Findings February 21, 2025 After weeks of confrontational trade talk and action, President Trump switched to a good cop approach on trade with China, expressing eagerness to hold talks soon with Xi Jinping and hope that a deal can be struck to lessen tensions over trade and…
European Leaders Huddling About Ukraine, Japanese GDP Exceeds Expectations, and U.S. & Canada Observing Holidays February 17, 2025 (204) Today is Presidents Day in the United States and Family Day in Canada. These holiday observances will make for a shortened day in global financial markets and are apt to sap them of leadership. European leaders…
Next Week’s Menu: February 15-21, 2025 February 14, 2025 Central Banks: Interest rate policies will be reviewed next week by the Reserve Bank of New Zealand, Reserve Bank of Australia (RBA), People’s Bank of China and Bank Indonesia. Policy board meeting minutes will be published by both the Federal Reserve and European Central Bank, and…
U.S. Consumers Pausing for Clarification on Policies and Direction of Inflation February 14, 2025 The dollar’s recent step backward was extended this Friday. The weighted DXY dollar index fell 0.4% overnight and has retreated 2.0% in the three weeks since President Trump’s inauguration. The dollar dropped 0.6% overnight against the New Zealand dollar, 0.5% versus…