The Australian CPI release for Q2 came in broadly within expectations. Headline CPI reaccelerated to 3.8%y/y from 3.6%y/y the previous quarter. Some of the narrower measures of inflation — trimmed-mean and weighted…
July nonfarm payrolls expanded by 114 thousand workers, a sharp slowdown from June’s downwardly revised 179 thousand, and significantly disappointing expectations of 175 thousand. The unemployment rate unexpectedly edged…
According to BCA Research’s Global Asset Allocation service, there are clear signs that growth is weakening. BCA’s Global Nowcast has been slowing for three months. Behind this slowdown is the fact that the US…
The Bank of England (BoE) lowered its policy rate by 25 basis points to 5% at its meeting on Thursday. While the move was expected, the governing board was split, voting 5 – 4 in favor of reducing the key interest rate.…
We assess the investment implications of the BoJ and Fed meetings, and give our take on the next policy moves. We also assess the impact on asset markets.
The Bank of Japan hiked its policy rate by 15 bps from 0.10% to 0.25% on Wednesday, and announced further quantitative tightening, reducing its pace of monthly bond buying from JPY 6 trillion to JPY 3 trillion. While the central…
FOMC members unanimously voted in favor of keeping rates on hold in July but signaled that a September cut is on the table. Inflationary pressures have indeed continued to ease over the past several months. Notably, the…
Eurozone headline CPI inflation unexpectedly accelerated in July, from 2.5% y/y to 2.6%. Core CPI remained stable at 2.9% despite expectations it would ease. EU Harmonized CPI accelerated in the regions’ three largest…
The Fed kept rates steady today, but teed up an initial rate cut in September while putting more emphasis on the employment side of its dual mandate.
Historically, interest-rate sensitive sectors such as financials and real estate have tended to post the highest returns in the 3 months preceding the first Fed rate cut. Interestingly, industrials, typically a deep cyclical…