Friday the Dow fell over 275 points on stronger than expected economic data that challenged monetary policy assumptions. Monday there was a 135 point rebound followed by Tuesday’s 335 point drubbing. Yesterday the Dow rose over 250 points on data that was weaker than expected,...
The all-inclusive unemployment data is data is released at 8:30. What will the data suggest? The statistics have a high hurdle to meet given the large January “beat.” Were the labor markets held back by the weather and the slowdown at the West Coast ports?...
The Beige Book stated the economy continued to expand across most of the country amid broad based gains in hiring and rising consumer spending. The Fed found “modest” or “moderate” growth in eight of its 12 districts. Four of the twelve districts reported economic activity...
Stocks fell moderately over fears of the details of the ECB stimulus, profit taking and concerns of the content of the Beige Book and the upcoming jobs data that could challenge the accepted monetary timetable. Oil advanced as it appears Libya’s daily production has been...
According to Bloomberg the first rate cut of 2015 occurred on January 1 by Uzbekistan. Since then, the cuts have come fast, with the People’s Bank of China (PBOC) on Saturday becoming the 17th central bank of the 57 monitored by Bloomberg to pare its...
Several years ago many were pontificating that yields will never go negative and banks would never charge for deposits. I viewed these declarations in the same manner of GM would never go bankrupt and the Federal Reserve would never bail out noninsured institutions....
Equity markets were again relatively quiet. There was some discussion regarding January’s CPI data. A plunge in January’s energy costs pulled the CPI down by 0.7%, the biggest decline since 2008 but ex food and energy, costs rose by 0.2%. The data confirmed the Fed’s...
There are number of countries that already have negative interest rates and JP Morgan was the latest money center bank who will begin charging large depositors a surcharge to hold their deposits. Will this force companies to begin expanding?...
What will be the tone of FRB Chair Yellen’s testimony? Moreover ECB President Draghi also speaks around the same time. Talk about massive headline risk....
Stocks rose handsomely on Friday on reports of a deal between Greece and its creditors. It is my understanding there is a four month extension of Greece’s aid if Greece meets conditions. In my view, most have acknowledged that in most scenarios Greece may not...