The relationship between exchange rate fluctuations and monetary policy has always been a subject of debate among economists and policymakers. Recently, Bank of Japan Deputy Governor Ryozo Himino highlighted the need for vigilance regarding the impact of the yen’s moves on the economy. This brings to light the complexities involved in considering exchange rates when
Economy
European shares saw a positive trend for the third consecutive session on Monday, as investors anticipated an interest rate cut from the European Central Bank (ECB). The STOXX 600 index closed 0.3% higher, with notable gains in Spanish and Italian stocks leading the way. This surge in stock prices was driven by expectations of a
Upon assuming office, Mexican president-elect Claudia Sheinbaum will be tasked with upholding her promises of expanding social programs, despite inheriting a budget deficit that reached its highest level since the 1980s due to increased spending by her predecessor. With a deficit of 5.9% of GDP in 2024, up from 4.3% in previous years, Sheinbaum will
As Asia kicks off the new trading month for global markets, all eyes are on the latest manufacturing PMI data from the continent’s biggest economies. This data will set the local tone and provide valuable insights for investors who are eagerly anticipating potential interest rate adjustments. With a mix of economic indicators coming out of
The Australian housing market continues to show strength, with home prices climbing steadily despite economic challenges. According to data from property consultant CoreLogic, national home prices rose by 0.8% in May, marking the largest monthly gain since October. This trend of growth has persisted for sixteen consecutive months, with prices up by 8.3% compared to
Stock markets in the Gulf showed positive movement on Sunday, with the Saudi index leading the gains. After hitting a five-month low, the benchmark index in Saudi Arabia rose by 1.1%. This increase was driven by growth in various sectors, particularly in IT, utilities, and healthcare stocks. Notable performers included ACWA Power with a 4.4%
Following Standard & Poor’s (S&P) decision to downgrade France’s long-term sovereign debt rating from “AA” to “AA-“, the financial markets are expected to react slightly with a potential spread between French and German benchmark bonds widening by 3-5 basis points. This minor impact may push the spread to approximately 50 basis points, a level comparable
Recently, the Russian government made adjustments to the mandatory sales of foreign currency for exporters, particularly those in industries like fuel, energy, metal, chemical, timber, and grain. The changes stipulate that if over half of the value of their contracts is paid in roubles, exporters may be exempt from certain currency sales requirements. This move
The new home prices in China continued to rise for the ninth consecutive month in May, as reported by a private survey. This increase was attributed to the various steps taken by the government to support the crisis-hit property sector. The average new home price across 100 cities saw a 0.25% increase in May, following
Recent economic data has had a significant impact on Asian markets, with stocks rising for the fourth month in a row. The MSCI’s broadest index of Asia-Pacific shares outside Japan increased by 0.55%, marking a 2.7% gain for the month of May. Despite concerns over a slowdown in the U.S. economy due to a downward
The recent surge in U.S. and global bond yields is causing a stir in Asian markets, leading to a strengthening dollar and tightening financial conditions. This shift is taking a toll on risk appetite and investor sentiment, as seen in the significant drop in equity indices worldwide. With a light economic calendar in Asia on
The dollar surged to a two-week high against major currencies on Thursday as a result of a rout in Treasuries. This increase in demand for safe haven assets, combined with higher U.S. yields, boosted the appeal of the dollar. The bond market turmoil has caused global equity markets to slide, prompting investors to flock to