Friday, 06 November, 2015
Watch out for interest rate risks {www.afr.com/news/economy/interest-rate-risks-rise-20151105-gks9ym} While the Reserve Bank of Australia was not inclined to cut rates in November, it certainly looks like Federal Reserve chairwoman Janet Yellen will find the courage to lift her cash rate off its near-zero level on December 16, some seven years after the global financial crisis first hit. Since RBA governor Glenn Stevens regularly communicates with Yellen, he may have been privy to her thinking on this […] Read More
Thursday, 05 November, 2015
(Bloomberg) — Mark Carney signaled the U.K. needs record- low interest rates for a while longer as China drags on the world economy. “Monetary policy must continue to balance two fundamental forces -– domestic strength and foreign weakness,” the Bank of England governor said at a press conference in London on Thursday. “The outlook for global growth has weakened since August. Many emerging-market economies have slowed markedly this year, and the committee has downgraded its […] Read More
Thursday, 29 October, 2015
(Bloomberg) — Federal Reserve officials pivoted toward a December interest-rate increase, betting that further job gains will lead to higher inflation over time and allow them to close an unprecedented era of near-zero borrowing costs. The Federal Open Market Committee dropped a reference to global risks and referred to its “next meeting” on Dec. 15-16 as it discussed liftoff timing in a statement released Wednesday in Washington, preparing investors for the first rate rise since […] Read More
Monday, 26 October, 2015
(Bloomberg) — Asian stocks pared gains, while the Australian dollar strengthened after China cut interest rates and lenders’ reserve requirements on Friday. The U.S. dollar slipped against major peers after capping its longest winning streak since January. The MSCI Asia Pacific Index rose for a second day. The Hang Seng China Enterprises Index erased an early advance, while metals were mixed after the People’s Bank of China’s move helped a gauge of emerging-market shares cap […] Read More
Wednesday, 21 October, 2015
(Bloomberg) — Oil and industrial metals retreated with emerging markets on signs a slump in global trade is deepening. Shares advanced. The Bloomberg Commodity Index slipped 0.4 percent, as aluminum dropped for a sixth day. The Shanghai Composite Index tumbled the most in a month amid speculation a recent rally was overdone. European shares and U.S. stock index futures rose, while Credit Suisse Group AG dropped after announcing a rights issue. Commodity-related currencies declined, including the […] Read More
Tuesday, 06 October, 2015
–Lower Job Gains Validates FOMC’s September Decision to Delay Liftoff –Willing to Wait on First Rate Hike ‘If We Get Weaker Data’ –Not Seeing Impact on Domestic Economy From Global Growth Concerns By Karen Mracek BOSTON (MNI) – The below-expected reading of the September jobs report validates the Federal Reserve’s decision to hold off raising rates last month, Boston Federal Reserve Bank President Eric Rosengren said in an interview. But with an unemployment rate at […] Read More
Tuesday, 06 October, 2015
AFR: What happens when the US jobless rate has a 3-handle? From AFR Contributing Editor Christopher Joye In The Australian Financial Review today I consider the history of the US business cycle and the relationship between recessions, changes in the jobless rate, and inflation (click on that link to read outside the paywall via Twitter or AFR subs can use the direct link here). This is crucial because the Fed has for the first time admitted what we long […] Read More
Friday, 25 September, 2015
(Bloomberg) — European stocks rallied the most in a month, the dollar strengthened and Treasuries led bonds lower as Federal Reserve Chair Janet Yellen reassured investors the turmoil in emerging markets won’t kill off U.S. economic growth. All but 14 out of 600 shares in Europe’s benchmark index advanced and futures signaled U.S. equities will halt a three- day decline. The dollar’s biggest gains came versus the euro and gold headed for its steepest drop in […] Read More
Tuesday, 22 September, 2015
(Bloomberg) — The trepidation that characterized last month’s turmoil is seeping back into global financial markets. U.S. stocks joined a worldwide rout in equities as a selloff in commodities resumed. The widening Volkswagen AG emissions scandal did little to calm nerves, dragging down automotive shares on speculation it may lead to tougher regulations. Demand for safety assets bolstered the yen and Treasuries. Equity volatility spiked from Europe to America as renewed concern about China’s strength sent […] Read More
Monday, 14 September, 2015
(Bloomberg) — The dollar was weaker against most peers as investors weigh the chances of an interest-rate increase going into this week’s Federal Reserve meeting. Asian stocks tracked losses in Chinese equities after weak industrial production and investment reports underscored slowing growth. The yen rallied with the euro, helping to drive Bloomberg Dollar Spot Index toward an almost three-week low, with traders and economists split on whether the Fed will boost borrowing costs for the […] Read More
