ECB pares the way for more QE by year-end, expect further EUR downside

Oct 25, 2015 20:25 pm UTC| Commentary Central Banks

The ECB surprised markets last week, strongly hinting additional policy stimulus at its December meeting, when the committee updates its economic projections. A time extension of the PSPP program by 6-9 months is the most...

ECB underpins risk assets while pushing yields and EUR lower

Oct 23, 2015 17:00 pm UTC| Commentary Central Banks

The ECB surprised by being much more dovish than we expected yesterday and more or less pre-announcing easing in December. We now look for a deposit cut from the ECB of 10bp on top of an extension of the QE programme...

Euro zone PMIs is not yet compatible with QE2

Oct 23, 2015 16:52 pm UTC| Commentary

ECB President Draghi gave prospects yesterday of monetary easing in December. But the condition for this is a deterioration of the outlook for economic growth and inflation. The purchasing managers indices for October only...

Euro area composite PMIs smashed expectations in October

Oct 23, 2015 16:47 pm UTC| Commentary

Services PMIs were up 0.5 points to 54.2, close to the highs reached earlier this year, while manufacturing output was down slightly to 53.3 (-0.2 points), a five-month low. New orders and hiring intentions diverged in the...

Mexico's lower participation in labor market suggests only a temporary improvement

Oct 23, 2015 16:22 pm UTC| Commentary

Mexicos unemployment rate had an important decline reaching 4.23% sa in September from 4.32% sa previously; this drop is mainly explained by the reduction in seasonally adjusted terms of the participation rate by almost...

Euro area PMIs indicate stable growth above trend

Oct 23, 2015 16:17 pm UTC| Commentary

The Euro-area PMIs came in solid, signalling continued strength in the service sector and no additional weakness in the more export-exposed manufacturing sector. For the short-term, the numbers indicate ongoing growth that...

China delivers monetary easing and financial reform in one step

Oct 23, 2015 16:10 pm UTC| Commentary Central Banks

China delivered another dual cut today to support the struggling economy, 25bp to the interest rates and 50bp to the reserve ratio. As a historical move, the deposit rate ceiling was removed, making interest rates fully...