Day One January 21, 2025 President Trump’s transactional and zero-sum approach to domestic and foreign policy appears to have been validated in financial markets on his first day back in the White House. The dollar appreciated 1.2% against the Mexican peso, 0.9% versus the Canadian dollar, 0.8% relative to the Australian and New Zealand dollars,…
U.S. stock markets and federal offices in the United States will be closed today for Martin Luthur King Jr’s birthday. The holiday coincides with the inaugural ceremony of Donald J. Trump, who plans a radical shift in policy on numerous fronts literally starting on his first day back in office. The presidential transition takes effect…
Next Week’s Menu: January 18-24, 2025 January 17, 2025 Central Banks: Interest rate policy reviews scheduled in the week ahead features the Bank of Japan, which is expected to double the current 0.25% rate level and will also publish a new quarterly Outlook for Economic Activity and Prices with updated forecasts. BOJ Governor Ueda will…
Dollar and Equities Extend Their Divergent Trends January 13, 2025 Today begins the final week before the inauguration of Donald Trump’s second non-consecutive term, which promises to be one of radical experimentation, alliance upheaval and uncertainty around the world. The dollar and share prices had initially responded favorably to Trump’s victory, but while the dollar…
Next Week’s Menu: January 11-17, 2025 January 10, 2025 Central Banks: Monetary policies will be reviewed in Poland, South Korea, Kazakhstan, Indonesia and the Czech Republic. The Fed Beige Book of regional economic conditions and minutes from the December policy meeting of the European Central Bank’s Governing Council will be published. Barkin, Williams, Schmid, Goolsbee…
Multi-Pronged Blow to Stocks and Bonds but Dollar Soars January 10, 2025 The People’s Bank of China announced a temporary suspension to its purchases of government bonds. The U.S. Labor Dept’s December employment situation report revealed more strength than forecast, notably in non-farm payroll jobs whose jump of 256k was the most in nine months…
Next Week’s Menu: January 4-10, 2025 January 3, 2025 Central Banks: Monetary policies will be reviewed in Israel and Serbia. Minutes from the FOMC meeting in December get published, and Kansas City Fed President Schmid and Philadelphia President Harker have speaking engagements. Deputy Governor Breeden and European Central Bank Executive Board member Lane speak publicly…
Difficult Session for Chinese Stock Market and Currency January 3, 2025 The dollar in offshore trading advanced to somewhat above 7.35 yuan, depressing China’s currency to an 18-year low, and the Shanghai Composite equity index tumbled 1.6% after officials let China’s 10-year interest rate slide below previous support levels. Against other currencies, the dollar is…
The New Year’s Opening Act January 2, 2025 Year 2025 in America kicked off with a terrorist act in the deep south city of New Orleans and news of a second straight double-digit decline in U.S. mortgage applications, yet pre-open stock futures point to a rebound from last week’s decline. The dollar also made gains,…
December 2024 and Full 2024 in Figures January 1, 2025 In spite of lessening monetary restraint by many central banks during 2024, long-term interest rates tended to end higher. Among economies featured in the table below, the rise in British interest rates ranked highest for both the whole year and in just December. Between the…