S&P cuts Turkey credit rating deeper into junk territory
Standard & Poor’s took Turkey’s sovereign debt rating even lower on Friday. S&P had already rated Turkey’s bonds as “junk,” but on Friday lowered the the long-term foreign currency sovereign credit rating one notch to a “B+” and the long-term...
US stocks are again headed for new highs while rest of the world’s stock market struggles
The U.S. stock market is well on its way to better-than-average gains this year, but a quick glance at overseas markets reveals a more sobering story. Global stock markets are having a tough 2018. While the S&P 500 is up...
Morgan Stanley cuts its profits estimates for General Motors because of its exposure to China
Morgan Stanley’s outlook on General Motors shares has dimmed due to the escalating trade war between the U.S. and China. The firm reduced its price target to $46 from $50 for General Motors shares and cut its 2018 earnings per...
Which Major Economies Have Exposure to EM Economies?
The Eurozone appears to have the most financial and economic exposure to EM economies. However, if external debt issues in the developing world are not systemic, then we are not overly concerned about that exposure. The Eurozone May Be the...
Is Turkey a Canary in the Emerging Market Coal Mine?
Some other individual emerging market (EM) economies could have their own financial problems à la Turkey. But we think any financial crises in the EM world would be individual episodes rather than systemic. Are External Debt Problems in Developing Economies...
Yen Gains Ground as Greenback Loses Luster
The Japanese yen has posted losses in the Friday session. In the North American session, USD/JPY is trading at 110.45, down 0.40% on the day. On the release front, Preliminary UoM Consumer Sentiment disappointed, dropping from 97.1 to 95.3 points....
Australia & New Zealand Weekly: Inflation Expectations Might be Anchored Despite the Official 2.5% Policy Target
Week beginning 20 August 2018 Inflation expectations might be anchored despite the official 2.5% target. RBA: Minutes, Governor Lowe and Deputy Governor Debelle speak. Australia: Westpac-MI Leading Index, construction work. NZ: real retail sales. US: Fed Chair Powell speaks at...
Week Ahead – Eurozone PMIs and Japanese Inflation Due; Jackson Hole Summit, Trade Updates & Turkey Could Steal the Show
Upcoming releases in the next seven days are pointing to a relatively quiet August week. Among the few stand-out readings are flash PMI prints out of the eurozone, Japanese inflation figures and US capital goods orders. In addition, the minutes...
Weekly Focus: Political Uncertainty Here to Stay
Market movers ahead In Norway, Q2 GDP growth data is due out on Thursday. The print will reveal whether or not a slowdown has been under way in Norway. Next week, we get preliminary PMIs in Europe, the US and...
Loonie Rallies Hard on Inflation Data
Canadian headline inflation this morning beat market expectations and printed a seven-year high last month, while the measure of core-inflation remained relatively stable. Canada’s CPI rose +3.0% y/y, following a +2.5% rise in June. Market expectations were looking for a...