More global easing

While markets were disappointed that the FOMC minutes from the June meeting didn’t throw any QE meat to the dogs, the weak data since, like the ISM mfr’g, ISM services and June payrolls, has made the minutes dated. Bernanke on Tuesday though will get us up-to-date on Fed thinking with his semi annual testimony on the economy and monetary policy. The Fed will print more money I’m sure with just the question remaining of when. In the mean time, Brazil last night cut rates by 50 bps as expected to 8% “given the fragility of the global economy” they said and its “disinflationary” impact. South Korea unexpectedly cut rates by 25 bps to 3% and they said “we can’t sit by idly with deteriorating external conditions cutting our economic growth.” The BoJ raised its QE program by 5T but reduced by 5T its loan facility to banks due to little demand. Indonesia kept rates unchanged. After its market closed, China reported greater than expected loan growth of 920b yuan in June, the 2nd most since Jan ’11. It’s FX reserves did rise slightly to $3.24T but is down from the end of Q1. Australia said they lost 27k jobs in June vs the estimate of no change. In Europe, IP in May unexpectedly rose .6% m/o/m but is still down 2.8% y/o/y.

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