Global Economic Prospects 2015

The global economy is still struggling to gain momentum. Read more ...

Development Prospects

Providing information, analysis, and advice on global trends in the world economy.  Find out more ...

Global Economic Monitor

Now free. Daily and monthly updates on global economic developments and relevant topical issues. Find out more ...

Syndicate content

Global Macroeconomics Team's blog

Global Daily: U.S. consumer sentiment rises more than expected in April

Global Macroeconomics Team's picture

Financial Markets

Global equities tumbled on Friday as investors grappled with renewed worries over Greek finances, fears of a regulatory clampdown on stock trading in China, and a flurry of disappointing U.S. corporate earnings. Most Asian markets closed lower Friday with Japan's Nikkei index losing 1.2%, but China’s benchmark Shanghai Composite index rose 2.2% to the highest level since March 2008. However, just after market closing the China Securities Regulatory Commission announced that it has imposed sanctions on over-the-counter margin trading, which has been a major driver of China’s stock market rally. The Chinese stock-index futures slumped over 5% following the news, weighing on global investor sentiment. Europe’s Stoxx 600 index fell 1.8%, ending the week down 2.2%, the steepest weekly drop since December. U.S. equities slumped as well with the Dow Jones Industrial Average and the S&P 500 index falling 1.5% and 1.1%, respectively.
 

Global Daily: U.S. jobless claims rise more than expected

Global Macroeconomics Team's picture
Financial Markets

The S&P Rating Services slashed its sovereign rating on Greece further into junk territory as pressure mounted on the country to secure funding or risk a possible default. The rating agency downgraded Greece’s rating to ‘CCC+’ from ‘B-‘ with negative outlook, and it warned that “without deep economic reform  or further relief”, it expects Greece’s debt obligations will be “unsustainable.” Greece’s 3-year and 10-year bond yields surged to their highest levels since 2012 on the back of the downgrade.

Global Daily: U.S. industrial production drops in March

Global Macroeconomics Team's picture

Financial Markets

U.S. government bonds advanced on Wednesday, gaining for a fourth day, after a report showed industrial production fell more than expected in March, adding to signs that U.S. economic growth is lagging expectations as the Federal Reserve weighs raising interest rates for the first time since 2006. Yields on benchmark 10-year Treasury notes fell 3 basis points (bps) to 1.87%. Meanwhile, Germany’s 10-year note yields fell to a fresh record low of 0.12% amid renewed concerns about Greece’s threat of default and pressure from the European Central Bank’s ongoing €1.1 billion QE program.
 

Global Daily: Eurozone industrial production grows more than expected in February

Global Macroeconomics Team's picture

Financial Markets

U.S. Treasuries rallied on Tuesday after a report showed retailed sales climbed less than analysts forecasted in March, bolstering speculation the Federal Reserve is unlikely to rush to raise interest rates. The yield on the benchmark 10-year Treasury note fell 7 basis points (bps) to 1.86%, while the 30-year bond yield dropped 8 bps to 2.51%. Along with the disappointing nonfarm payrolls data earlier this month, the decline in consumption was interpreted among traders as a sign that the Fed might push back the timing of monetary tightening.
 

Global Daily: U.S. dollar rise against euro on Fed hike speculations

Global Macroeconomics Team's picture

Financial Markets

The dollar strengthened on Monday versus the euro on renewed optimism among investors that the U.S. Federal Reserve will raise interest rates in coming months. The greenback climbed 0.4% to $1.0565 per euro. It reached $1.0458 on March 16th, the strongest level since January 2003. Meanwhile, the dollar weakened against the Japanese yen amid uncertainty surrounding the Bank of Japan’s stimulus polices, slipping 0.1% to 120.08 yen.

Global Daily: India’s industrial production posts strongest growth in nine months

Global Macroeconomics Team's picture

Financial Markets

World stocks markets remained robust on Friday as Asian and European shares posted their biggest weekly gains in months. China’s Shanghai Composite Index closed above the 4,000 level for the first time since 2008 with a weekly gain of 4.4% and Japan’s Nikkei index past 20,000 points for the first time in 15 years with an increase of 2.4% for the week. Europe’s Stoxx 600 index closed 0.9% higher to surpass its all-time closing high reached yesterday. U.S. equities traded higher as well with both the S&P 500 and the Dow gaining 0.4% in midday trading.

Global Daily: U.S. jobless claims rise less than expected last week

Global Macroeconomics Team's picture

Financial Markets

Global stocks markets advanced on Thursday as Greece’s repayment of a €450 million loan installment to the International Monetary Fund lifted European stocks to a seven-year high. With recent weak data possibly pointing to less economic readiness for a rate hike, growing expectations that the Fed will delay the timing of monetary tightening until the latter part of the year also helped boost stocks. Meanwhile, U.S. Treasury yields rose as an auction of $13 billion in 30-year Treasury bonds saw weak demand and a smaller-than-expected jobless claims pointed to strengthening U.S. labor market.

Global Daily: Eurozone retail sales fall in February

Global Macroeconomics Team's picture
Financial Markets

Mexico is issuing its first 100-year euro-denominated bonds and its third so-called century bond as the country seeks to take advantage of attracting pricing conditions in the single currency. The Latin American sovereign is offering €1.5 billion of debt due in April 11, 2115 at a yield of 4.2%. Emerging-market sovereign and corporate borrowers from Bulgaria to China sold €20 billion of euro-denominated bonds in the first quarter of 2015 as they seek to lock in lower borrowing costs in Europe.

Global Daily: ECB meets bond-buying target for quantitative easing

Global Macroeconomics Team's picture
Financial Markets

The European Central Bank said it has reached its bond-purchasing target of some €60 billion in the first month of its quantitative easing program. The ECB purchased €47.4 billion of public-sector bonds in March, and settled the rest of the monthly quota with covered bonds and asset-backed securities. The central bank has committed to buy about €60 billion of government and corporate debt a month until at least September 2016, making the stimulus package’s total value about €1.1 trillion.

Pages