OVERNIGHT MARKETS AND NEWS March E-mini S&Ps (ESH15 +0.23%) this morning are up +0.28% and European stocks are up +0.84% as energy producers rose after the price of crude oil stabilized. The Russian ruble rallied up to a 1-week high against the dollar while yields on Spanish and Portuguese 10-year government bonds fell to record lows….
Asian stocks rose Monday, with the regional index headed for its steepest three-day advance in almost two months, as commodity shares climbed amid a rally in crude oil. New Zealand’s dollar dropped while Japanese bonds extended gains. The MSCI Asia Pacific Index climbed 0.6 percent by 11:04 a.m. in Tokyo, bringing its gain since Dec. 18…
Can a Central Bank Lend Money to Firms, Individuals or Households? by Dirk Ehnts, Econoblog101 Or, put differently, can firms, individuals or households borrow from the central bank? The answer for modern central banks is: no. Here is an excerpt from “the Statute”: CHAPTER IV MONETARY FUNCTIONS AND OPERATIONS OF THE ESCB Article 17 Accounts with the…
Banks are selling a record amount of U.S. structured notes tied to the stocks of fast-growing, volatile technology companies such as Facebook and Twitter. As Bloomberg Briefs reports, sales of securities linked to Facebook soared to $457.6 million this year, more than double the $204.2 million issued during the same period of 2013. Bloomberg notes that investors…
On December 16, 2014, U.S. zero-interest-rate policy (ZIRP) entered its seventh year. Happy belated birthday, ZIRP! And on Wednesday, the Federal Reserve noted that it can be “patient in beginning to normalize the stance of monetary policy.” Thankfully, after six long years of this emergency measure, the Fed is going to remain “patient.” A slight…
The holiday-shortened week has begun. Some causes of consternation have eased. Oil prices are firmer after the pre-weekend recovery. The Russian rouble, where the focus has been greater than the exposure, has continued to recover following signs that China may be willing to offer it more assistance. Its up 5.4% to bring its two-day recovery to…
I will be keeping posts to a minimum until the New Year. Friday finished with a bit of a high volume flourish, which added a nice gloss to Thursday’s big gains. The Russell 2000 managed to go one step further with a breakout. Watch this index over the coming days; if it can hold the…
Looking for a last minute book to purchase this holiday season for the bright business or economics student in your life? Perhaps the student in your life appreciates mixing economic theory with murder, as in The Mystery of the Invisible Hand by Marshall Jevons. Marshall Jevons is the pseudonym of economics professors Kenneth Elzinga of the University of…
EUR/USD Signal Update Last Thursday’s signals expired without being triggered as none of the key levels were hit. Today’s EUR/USD Signals Risk 0.75% Trades may only be taken between 8am and 5pm London time. Short Trade 1 Short entry after bearish price action on the H1 time frame immediately following the next touch of 1.2360. Put…
This is getting out of hand. A recent post received too many high quality comments. I discuss the discussion some here. The general view expressed in the discussion is that it sure looks as if non residential fixed capital investment as a percent of GDP expressed (nrfinvgdp) and nominal interest rates are positively correlated, because high non residential…
