Several Points of Focus Today November 20, 2024 Third-quarter earnings from the Nvidia, which arrive after markets close today, could be highly influential in determining where the stock market goes from here. Forward guidance from the AI chipmaker holds the key. Disinflation and sluggish growth in the euro area are the backdrop to the recent…
Investor Flight to Safety After Putin Threatens Use of Nuclear Weapons November 19, 2024 Geopolitical risk took a turn for the worse today. Russian President Putin widened conditions under which nuclear weapons might be used not only against Ukraine but allies of Ukraine whose long-range missiles are used against Russian sites by Ukraine. The clear…
Quiet Monday So Far Aside from Large Gains in Tesla and Crypto November 18, 2024 The weighted DXY dollar index has ticked 0.1% higher due to a 0.7% rise against the yen but mitigated by marginal dips against the euro, Swissy, and sterling. DOW and SPX futures are little changed, while a 3% advance in…
Next Week’s Menu: November 16-22, 2024 November 15, 2024 Central Banks: Monetary policies will be reviewed in China, Indonesia, Iceland, Turkey, Hungary and South Africa. Guindos and Schnaebel of the European Central Bank and Collins and Hammack of the Federal Reserve are some of the monetary officials with public speaking engagements in the period. Special…
Mexico’s Third Central Bank Rate Cut Thus Far November 15, 2024 The Bank of Mexico’s overnight interbank funding rate as expected was cut a third time since August to 10.25%. Like moves then and in September, today’s announced reduction was by a cautious 25 basis points. Mexico remains in Trump’s cross-hairs, and one risk is…
Next Week’s Menu: November 9-15, 2024 November 8, 2024 Central Banks: The Bank of Mexico holds a scheduled policy review, and the Bank of Japan publishes a summary of its latest Board meeting. Fed Chairman Powell heads an extensive list of Fed officials with speaking engagements. Bank of England Governor Bailey, Reserve Bank of Australia…
Central Reserve Bank of Peru Cuts Interest Rate November 8, 2024 After cutting Peru’s central bank interest rate for an 11th time since September 2023, the BCRP board released a statement that at 5.0% “the real interest rate is approaching the level estimated as neutral. Headline and core consumer price inflation printed at 2.0% and…
Attention Shifts to Other Countries from the United States November 8, 2024 The broad Republican Party victory in Tuesday’s U.S. election has been center-stage in global financial markets most of this week. Running on a platform calling for sweeping changes on a wide range of policies, Trump got a slim majority of the popular vote…
FOMC Statement and Press Conference November 7, 2024 The Federal Open Market Committee, as had been expected, voted to lower the federal funds target by an additional 25 basis points to a range of 4.5-4.75%. A released statement made minimal cosmetic changes. In discussing the U.S. labor market, the prior observation that job gains have…
FOMC Preview November 7, 2024 The unexpected breath of this week’s Republican Party election victory is not expected to impede previous signals by the Fed of a likely modest interest rate hike at this month’s scheduled monetary policy review. There previously has been only a single 50-basis point cut from peak, which happened at the…