Troubles in China, Big Drop in Oil Price, and Just Three Weeks Left Before America’s Election October 15, 2024 The latest barrage of stimulus measures from China’s government hasn’t persuaded doubting investors to believe the economy may be turning the corner. The Shanghai Composite index fell 2.5% today, dragging Hong Kong’s Hang Seng down 3.7%…
Dollar Kicks Off Week on a Positive Note October 14, 2024 The weighted DXY dollar index rose 0.3% overnight to a nine-week high, with gains of 0.6% against the Swiss franc, kiwi and Aussie dollar, 0.4% relative to the Japanese yen, 0.3% versus the Chinese yuan and 0.2% vis-a-vis the euro, loonie, and sterling. Holidays…
Next Week’s Menu: October 12-18, 2024 October 11, 2024 Central Banks: The European Central Bank heads a list that also includes Turkey, Indonesia, Thailand and the Philippines of monetary authorities that will be reviewing their interest rate stances. Several Fed officials have planned speaking engagements including Bostic, Waller, Kugler, and Goolsbee. ECB President Lagarde and…
South Korea Gets Its First Central Bank Rate Cut October 11, 2024 The Bank of Korea, whose base rate had stayed at a peak 3.50% since a culminating 25-basis point increase in January 2023, finally joined the group of monetary authorities that have begun to lessen policy restrictiveness. Market players had anticipated this decision. Today’s…
Dollar Up Against Yen and Canadian Dollar but Flat Relative to Euro and Sterling October 11, 2024 Yesterday’s U.S. CPI report delivered mixed news, so investors seek further reassurance from today’s producer price inflation due today and projected to dip modestly on both a month-on-month and year-on-year basis. Overnight trading saw the dollar advance 0.4%…
Next Week’s Menu: October 5, 2024 October 4, 2024 Central Banks: While the coming week has a limited number of central banks reviewing their policy stances including those in Peru, India, South Korea and New Zealand, a slew of central bankers have speaking engagements. This includes Kugler, Barkin, Goolsbee, Williams, Logan, Jefferson, Bowman, Bostic, Musalem,…
Marking Time Ahead of U.S. September Labor Market Data Release October 4, 2024 At this writing, the release of U.S. and Canadian labor market statistics is just over an our away. The dollar fell 0.3% overnight against the yen and sterling, but its other major relationships have barely moved. Two developments worth monitoring involve rises…
Reflections on the Vance-Walz Vice-Presidential Debate October 3, 2024 Among the various factors that impact U.S. voter predispositions, vice-presidential debates generally rank low. Nonetheless, last Tuesday’s event was illuminating in helping to shed light on some faulty arguments that are being made. Here are five: Should Vice President Harris be held accountable for things both…
Festering Concerns October 3, 2024 It’s getting harder for investors to overlook the coming U.S. election, now less than five weeks away and still fraught with uncertainty. A strike of U.S. dockworkers along the Gulf and Eastern seaboards could not have come at a more awkward time. The possibility of a full-blown, multi-front war in…
Iceland’s Initial Central Bank Rate Cut October 2, 2024 The Central Bank of Iceland became the latest monetary authority to initiate a cycle of interest rate cuts from an extended highly restrictive level. The key 7-day term deposit had been held at 9.25% since a 50-basis point hike in August 2023 culminated increases totaling 125…