As the USD sinks, equities in most of the European stock markets fell in the past five days partially responding to a poor factory orders in Germany and also due to lower inflationary indices on the common currency area. The ECB once more came up saying that it will fight against the excessively low price […]
Janet Yellen composed her words in a more dovish tone to counterbalance the previous hawkish comments from some FED officials and a new sell off on the US dollar took the currency to a new low on the following sessions. On Friday the nonfarm payroll increased more than expected and the 0.1% higher labor force […]
The FOMC signaled a slower pace of normalization saying that interest rates will be hiked two times instead of the previous announced four times adjustment. While it seemed that the marketplace had priced fewer increases the reaction of the USD proved the contrary with the Dollar Index sharply falling to test the levels seen in […]
Mario Draghi surprised the markets saying that the ECB is done on lowering borrowing costs for now. Initially the reaction on the announced plan of lower rates and to increase the bond purchases making corporate bonds eligible was negative to the Euro, but after Draghi’s speech the currency reversed and had a strong rally of […]
China will to eventually run bigger budget deficits giving not to let GDP growth fall much more and to keep its objective to reach higher per capita income – shadowing Moody’s lower credit outlook of the country’s debt. A more benign macro environment encouraged investors to buy risky assets expecting further help from Central Bankers […]
Central Banks of the G20 met last week to discuss their efforts to shore up the economies re-enforcing their will to keep stimulus measures although not being more specific about which ones and their timing. In China the PBoC today cut the reserve-ratio rates of the banks helping stock markets to recover in Europe while […]
China signaled it does not have interest to make the Yuan weaker and the FED on its minutes from the last meeting acknowledged that the recently turmoil of the financial markets will be taken in consideration on its decision of further interest rate hikes. Saudi Arabia, Russia, Venezuela and Qatar shared their thoughts of keeping […]
US job creation in January was below expected but still above the 150K mark that most economists say to be enough to keep the unemployment rate low. The increase on average hourly gains was read as a signal that the FOMC might eventually consider tightening on its March meeting as inflation shall not ease. At […]
FUNDS SHORTENING AND MACRO SHAKY On Davos last week central banks’ presidents did their job in talking about further “support” for the markets (China) and a potential new wave of liquidity easing (ECB and BoJ). The rhetoric was enough to halt the selling mode that investors were on and provoked a capitulation that drove equities […]
Weekly Coffee Perspective The marketplace has priced a FED lift off at the end of the FOMC meeting on December 16th, with the bets being bolder after the strong job creation number in November and the higher revision for the October data. In fact some analysts believe that the dollar has already accounted for two […]
