Download PDF Conventional economic theory suggests that Central Banks (CBs) should only intervene to influence short-term interest rates and allow the market to set long-term rates. However, in modern economic history, this belief has been put into question: most notably, the US and the Euro Area have reacted to the Read more…
In mid-September, there has been a liquidity crisis in the money market of secured overnight borrowing. We have analyzed this in an article published one month ago, headed “Liquidity Squeeze: What is the Repo-Scarcity Premium?”. Since then, the Federal Reserve proceeded to inject more than 230 billion over the period Read more…
Introduction The 2008 Global Financial Crisis (GFC) and subsequent Great Recession pushed the US Federal Reserve to deploy two main tools of monetary interventionism: 1) Quantitative Easing (QE) 2) Reduction of the federal funds rate to unprecedented historical lows The Federal Reserve began purchasing both sovereign and corporate bonds in Read more…
[edmc id= 3290]Download here the Weekly Market Brief[/edmc] United States A flurry of US data came out this week. Consumer sentiment came in at 91.3 in November, below an initial reading of 93.1. New home sales rose to 10.7%, taken as positive despite coming in below consensus. Consumer spending increased 0.1% Read more…
[edmc id= 3279]Download here the Weekly Market Brief[/edmc] United States Once again, the discussion around the expected Fed policy decisions in December has dominated the week in the US markets. The minutes of the Fed October meeting, released on Wednesday, hardened expectations of an interest rate hike. They also hinted at Read more…
[edmc id= 3197]Download here the Weekly Market Brief[/edmc] United States The one just ended has been a pretty volatile week for the US market, with investors continuing to show some concern about the possibility of a rate hike in December in an environment of still uneven economic growth. Deteriorating growth outlooks Read more…
[edmc id= 3174]Download here the Weekly Market Brief[/edmc] United States US economy has seen many macroeconomic data being released this week, in particular regarding the labour market, while the FED governor had a speech that has strongly affected the markets on Wednesday. The labour market has been the main actor of Read more…
The purpose of the article is to provide an explanation on the economic policies of the third largest economy in the world. In particular, explanation of Abenomics’ three arrows, their effects on Japanese economy and our view on the next steps that policy makers are likely to undertake. With this Read more…
[edmc id= 3109]Download here the Weekly Market Brief[/edmc] United States This week has been very intensive due to the large amount of macroeconomic data that have stricken the US economy. On the labour market side, the situation continues to improve. In fact, the initial jobless claim beat expectations, 260K requests against Read more…
[edmc id= 3009]Download here the Weekly Market Brief[/edmc] United States October still seems to be a very positive month for US equities. Some analysts pointed it out as the month for a possible rate hike, but it ended up being positive so far, even if uncertainties about the long-awaited rate hike Read more…
[edmc id= 2948]BSIC Weekly Market Brief[/edmc] United States The new positive data regarding the labour market and the speech of the FOMC regarding the recent decision of the FED not to hike interest rates have impacted US markets in the past week. For what concerns the labour side, the Initial Read more…
BSIC Weekly Market Brief United States The major benchmarks were mixed as worries over China’s waning commodity demand and the potential for new rules on drug pricing gave way to a late-week rally. Stocks fell sharply at the start of the week, reaching back toward the lows that they had Read more…
BSIC Weekly Market Brief United States Last week decision by the FED to keep the cost of money unchanged was still affecting the stock market, pushing the S&P500 down during the first part of this week. On the other hand, the yield on the 10-year Treasury Notes has floated quite Read more…
This week the market division wrote about US, UK and EU, with a particular focus on what is happening in Greece. US The market mover this week in US was the inflation figure – consumer prices fell 0.1% in March with respect to last year, but the core measure of Read more…
U.S. U.S. equities experienced a negative performance during the past week. Stocks suffered sharp losses also on Friday and the main indexes registered a decline for a third week in a row, finishing what has turned out to be a turbulent five-day trading stretch. The Dow Jones industrial average fell Read more…