May 23, 2016
European and U.S. equity markets recovered moderately after signs from the U.S. Federal Reserve pointing to a possible rate hike already in June had deteriorated investors’ sentiment. The EuroStoxx 50 climbed about +1.0% on Friday. On Wall Street, the S&P 500 index was able to break away from a seven-week low amid friendly economic data and driven by technology shares.
May 20, 2016
The possibility of a potential early further interest rate increase by the Federal Reserve (Fed) put pressure on European and American stock exchanges, while the U.S. dollar continued to gain ground. At the same time, The Conference Board’s monthly leading indicator – an index gathered from ten different leading economic data – rose +0.6% (consensus +0.4%) pointing to a stronger growth pace of the overall U.S. economy.
May 19, 2016
The U.S. Federal Reserve (Fed) seems still considering a possible further rate hike at the next meeting on June 15 according to the FOMC Minutes published yesterday evening. Some council members might consider another tightening of interest rates in June as justified, if more signals of an economic improvement become visible.
May 18, 2016
Japan’s real interest rates began to rise last summer, underpinning the yen’s broad-based gains over the past year. More recently, global risk aversion and confusion about the Bank of Japan’s intentions have only further amplified yen strength. But that has yet little to do with a presumed failure of Japan’s recent monetary policy choices, which are actually beginning to grip.
May 11, 2016
Last week’s weak US payroll data may have marked the low point in the global cyclical slowdown that began last sum-mer. Since then, warned by increased financial market volatility, the US has postponed monetary tightening, Europe and China have taken additional measures to support their economies, while Japan is almost certain to act as well if extreme yen strength persist.