Daily Comment
Daily Comment (October 24, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Good ISM data from Europe (see below) lifted global equity markets. Mergers are another factor affecting financial markets, with the biggest being Time Warner (89.48, +6.84) and ATT (37.49, -1.15). This one is getting lots of political attention. Donald Trump has already indicated that his administration… Read More »
Daily Comment (October 21, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] The dollar is higher this morning on speculation that the Fed interest rate policy will diverge from the easy monetary policies implemented in Europe and Asia. The dollar rose yesterday and the euro fell as investors interpreted ECB President Draghi’s comments as an indication that stimulus… Read More »
Daily Comment (October 20, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] ECB President Mario Draghi is giving his press conference as we write this. The ECB maintained its benchmark lending rate at zero, the deposit rate at -0.4% and the asset purchases at €80 bn a month. Draghi said that the central bank expects interest rates to… Read More »
Daily Comment (October 19, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] It’s a relatively quiet morning on the macro front. Chinese data came in on forecast to slightly weaker than expected. While GDP rose 6.7% annually, as expected, industrial production rose 6.1% annually, weaker than expected. Yesterday afternoon, the Treasury International Capital (TIC) net monthly flows report… Read More »
Daily Comment (October 18, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Equity markets are enjoying a strong morning as financial markets prepare for a modest credit tightening in December. Chair Yellen’s recent comments about allowing the economy to run hot were somewhat offset by Vice Chair Fischer yesterday when he cautioned against letting the economy and inflation… Read More »
Daily Comment (October 17, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] The weekend was full of political news and some policy news as well. On the political front, the Trump campaign is pressing its point that the elections could be “rigged” but has widened the definition beyond mere poll manipulation, suggesting the mainstream media is aligned against… Read More »
Daily Comment (October 14, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Global equity markets are trending higher this morning; the rise is being attributed to inflation running a bit higher than expected in China (see below), reducing the issue of deflation. China’s practice of exporting deflation has been a concern for some time, but mildly positive inflation… Read More »
Daily Comment (October 13, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] The FOMC minutes did have some interesting information but no real surprises. It confirmed what the dissents and the dots chart indicated—the FOMC is divided on policy. The hawks are concerned that waiting too long to raise rates could lead to an overheating economy and force… Read More »
Daily Comment (October 12, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] The big news overnight was that PM May will allow Parliament to debate on her plan to exit the EU. The GBP rallied strongly on the reports. However, there is nothing to suggest that she is planning to let the legislature vote on Brexit. There is… Read More »