Why Asian Markets Rebounded on August 14
Asian markets rebounded on Monday as concerns about the geopolitical tensions between North Korea and the United States abated.
Macroeconomic Analysis
Is Strong Economic Expansion in the Eurozone Driving the ECB?
The European economy has expanded in the last 17 consecutive quarters. The Eurozone’s annual growth rate is 2.1%—the highest growth rate in the last six years.
Inflation in Colombia Continues to Fall in July 2017
Consumer prices in Colombia (GXG) rose 3.4% on a year-over-year basis in July 2017, lower than the 4.0% rise in June 2017.
Asian Markets Continue to Weaken amid North Korean Strife
With an additional weakness in the markets due to tensions in North Korea, Japan’s Nikkei Index fell on Thursday to the lowest level in more than two months.
Marginal Rise in Industrial Confidence in Colombia in 2017
Industrial confidence in Colombia (GXG) improved in June 2017 to -5.4% as compared to -8.8% in May 2017.
Should We Be Worried about Greenspan’s Bond Market Warning?
Greenspan cites rapid inflation growth as the reason for a bond market collapse. But the markets and Fed officials think otherwise.
Can There Really Be a Bubble in the Bond Market?
Fundamentally, bonds (AGG) are a discount instrument and are generally never expected to be in a bubble. Let’s see why that’s the case.
Why Eurozone Manufacturing PMI Dropped in July 2017
According to a report by Markit Economics, the final Eurozone manufacturing PMI (purchasing managers’ index) stood at 56.6 in July 2017 as compared to the 57.4 in June 2017.
Asian Markets Are Weaker amid North Korea Tensions
On August 10, the Shanghai Composite Index fell 0.42% and ended at 3,261.75. The market is looking forward to the release of China’s new loans data.
Spain’s Manufacturing Activity Fell in July
According to a report by Markit Economics, the final Spain Manufacturing PMI stood at 54 in July 2017 as compared to 54.7 in June.
Why Big Five Tech Companies Could Keep Dominating Markets
The big technology companies (XLK) are expected to continue dominating the markets (SPY) (QQQ) thanks to their size, innovations, acquisitions, and investments in 2017.
How France’s Manufacturing Activity Trended in July
According to data provided by Markit Economics, the final Markit France manufacturing PMI (purchasing managers’ index) stood at 54.9 in July 2017 compared to 54.8 in June 2017.
How Did Germany’s Manufacturing PMI Trend in July?
The final Markit Germany manufacturing PMI (purchasing managers’ index) stood at 58.1 in July 2017 compared to 59.6 in June 2017.
Chart in Focus: A Look at the British Pound
The British pound recorded another multi-month high of 1.3266 against the US dollar before the Bank of England announced its inflation report and interest rate decision on August 3.
Asian Markets Pulled Back amid North Korea Tensions
On Wednesday, the Nikkei opened the day lower and closed at more than two-month lows. Increased tensions with North Korea weighed on the Nikkei Index.
Is the Euro Running Out of Steam?
The German DAX (DAX) was up ~1.1%, Euro Stoxx (FEZ) was up ~1.1%, and France’s CAC was up ~1.4% in the week ended August 4, 2017.
Why Indonesia’s Manufacturing Activity Fell
Manufacturing activity in Indonesia In July 2017, manufacturing activity in Indonesia (EIDO) fell at the fastest pace in 19 months, mainly due to sharp decline in its output. Indonesia’S (EEM) manufacturing PMI (purchasing managers’ index) fell to 48.6, compared with 49.5 in June 2017, according to an IHS Markit report. New orders also fell in July […]
Why Manufacturing Activity in Brazil Is on a Decline
Manufacturing activity in Brazil In July 2017, the manufacturing PMI (purchasing managers’ index) in Brazil (BRZU) continued to decline, falling to 50 from 50.5 in June 2017. July 2017 brought a slowdown in both output and new business. US companies doing business in Brazil include Walmart (WMT), ExxonMobil (XOM), Chevron (CVX), and Apple (AAPL). Brazil (EWZ) […]
Global Manufacturing Activity Picks Up the Pace in July 2017
In this series, we’ll look at the performance of global (ACWI) manufacturing indexes and manufacturing activity in emerging markets.
How Market Volatility Is Trending
Volatility plays an important role in the market. VIX fell nearly 8.2% in July 2017 and 20% on a year-to-date basis.
Asian Markets Were Weak on August 4, Decreased Risk Appetite
On August 4, the Shanghai Composite Index fell 0.33% and ended the day at 3,262.08. The SPDR S&P China ETF (GXC) fell 0.05% to $96.77 on August 3.
Why Indonesia’s Consumer Confidence Was Down in June 2017
Consumer confidence in Indonesia (EIDO) fell to 122.4 in June 2017 from an all-time high of 125.9 in May 2017.
Manufacturing Activity in Indonesia Contracted in July 2017
Manufacturing activity in Indonesia (EEM) in July 2017 fell at its fastest pace in the last 19 months mainly due to the sharp decline in its output.
Indonesia’s Exports Fell in June 2017
Exports from Indonesia (EIDO) in June 2017 stood at $11.6 billion, a fall of 11.8% on a year-over-year basis and 19% on a month-over-month basis.
Here’s Why Indonesia’s Trade Surplus Rose in June 2017
Indonesia’s (EIDO) trade surplus in June 2017 stood at $1.6 billion as compared to $1.1 billion in the corresponding period last year and $0.57 billion in the previous month.
Inflation in Indonesia Fell in July: Is It a Correction or Trend?
Inflation in Indonesia (EEM) in July 2017 stayed in line with the market expectation of 3.9%.
South Korea’s Business Confidence Remains Steady in July 2017
Business confidence in the manufacturing sector in South Korea (EWY) has remained stable at 78 in July 2017.
Equities in South Korea Rise with Tech Rally in July 2017
South Korean equities are soaring in 2017, with the Korea Composite Stock Price Index (or KOSPI), its benchmark index, reaching an all-time high of 2,451.5 in July 2017.
Asian Markets Were Mixed in the Week Ending July 28
After gaining for five consecutive trading weeks, China’s Shanghai Composite Index started the week ending July 28 on a stronger note.
Asian Markets Started This Week on a Positive Note
After gaining for six consecutive trading weeks, China’s Shanghai Composite Index started this week on a stronger note.
What to Expect from the US Dollar
The US Dollar Index (UUP) continued to slide in the previous week due to the FOMC’s dovish statement and weaker-than-expected economic data.
International Monetary Fund Sees Renewed Brexit Pain for the UK
International Monetary Fund slashes UK growth forecast In its World Economic Outlook update, released on July 23, the International Monetary Fund (or IMF) downgraded its growth outlook for the United Kingdom. The IMF said that it expects the UK economy (EWU) to grow at a rate of 1.7% this year, compared with its previous forecast […]
Why the International Monetary Fund Expects Continued Euro Growth
Growth projections for Euro area upgraded The International Monetary Fund (or IMF) has revised its growth projections for France, Germany, Italy, and Spain. Growth projections for Germany (FGM), France (EWQ), and Italy (EWI) were upgraded by 0.2% for 2017, and 0.1% for 2018. Spain (EWP) had a higher upgrade to growth expectations, with a change of […]
Why Bond Prices Rose after the FOMC’s Statement
US government bonds gained after the FOMC (Federal Open Market Committee) indicated in its July 2017 statement that near-term inflation could remain below its 2% target.
US Unemployment: The Fed’s Favorite Metric Continues to Improve
In a statement following the conclusion of its two-day monetary policy meeting, the FOMC stated that US labor market growth was solid.
India’s Service Sector Activity Strengthened at the End of 2Q17
The service sector PMI (purchasing mangers’ index) in India (INDA) rose to 53.1 in June 2017, compared to 52.2 in May.
Asian Markets Pulled Back on July 28
On July 28, the Shanghai Composite Index rose 0.11% and ended the day at 3,253.24. The SPDR S&P China ETF (GXC) fell 0.48% to $95.76 on July 27.
Why Manufacturing Activity in India Fell in June 2017
Uncertainty related to India’s new goods and services tax, which was implemented on July 1, 2017, seemed to affect India’s manufacturing activity in June 2017.
The Japanese Yen Could Keep the US Dollar Company
Another week of appreciation The Japanese yen (JYN) had another positive week, posting gains of 1.3% and closing at 111.12 against the US dollar (UUP). The previous week’s close for the currency pair was 112.53. This strength was primarily driven by the US dollar, rather than positive news from the Japanese economy. Most of the […]
Why the British Pound Failed to Stay above 1.30
Investors not confident the Bank of England will raise rates The British pound (FXB) has had a roller coaster ride over the last few weeks, as mixed signals were given by the Bank of England. After a hawkish tone at its June meeting, the Bank of England has turned dovish in recent weeks. The British pound […]
This Is Why the US Dollar Could Slide Further
US Dollar index reaches a 14-month low The US Dollar Index (UUP) continued with its fall as investors preferred major peers. In the week ended July 21, the US Dollar Index closed at 93.78, falling 1.7% from the week prior. It is headed for its fifth consecutive month of loss this year. Conflicting news from […]
Why the US Dollar Took a Hit after the FOMC’s July Statement
Most of the statement released by the Federal Open Market Committee (or FOMC) following its two-day monetary policy meeting was in line with the market’s expectations.
Why Equity Markets Celebrated the FOMC’s Statement
In a week dominated by corporate earnings, which have been driving the US markets higher, the FOMC’s dovish stance in its July statement sweetened the deal for equity investors.
Will the US Balance Sheet Unwind Affect the Markets?
After the July FOMC meeting statement was released, market participants came to believe that the Fed would begin the process of balance sheet normalization soon.
Is Consumer Spending Rising in India amid Reforms in 2017?
Consumer spending in India (INDA) is expected to grow via remonetization and other reforms undertaken by its government in 2017.
Asian Markets Maintained Strength on July 27
On July 27, the Shanghai Composite Index rose 0.06% and ended the day at 3,249.78. The SPDR S&P China ETF (GXC) rose 0.91% to $96.22 on July 26.
What Drove the Rise in Mexico’s Manufacturing Activity in June?
Mexico’s manufacturing activity posted a strong performance after its output, new orders, and employment picked up the pace in June 2017.
Did Inflation Pose a Huge Concern for Mexico in June 2017?
Consumer prices in Mexico (EEM) surged 6.31% year-over-year (or YoY) in June 2017, compared to their 6.16% rise YoY in May.
Mexican Unemployment Edged Up in June—Is the Rise Temporary?
Global (ACWI) recovery in 2017 has helped labor market conditions to improve across OECD (Organisation for Economic Co-operation and Development) nations.
Mexico’s Economic Activity Rebounded in May 2017
Economic activity in Mexico rose 3.1% year-over-year (or YoY) in May 2017, a rebound from its YoY fall of 0.57% in April 2017.