•
Russia hikes rates sharply to defend the
collapsing RUB
– Move will
depress the domestic economy but may not stem capital flight
•
Oil resumes its decline – technical say it’s
headed still lower
•
EM currencies react largely as one might
expect to lower oil prices
– One major
exception: TRY hits record low on Turkish political risk
•
Gold, silver decline despite increased
turmoil & uncertainty
– Trading
more like commodities than investment vehicles?
– Lack of
safe-haven flows into gold suggest it’s losing some attraction
•
RBA discussed why market is pricing in chance
of rate cut
– May be
the precursor to more considered discussion of rate cut = AUD-negative
•
China PMI falls further than expected into
contractionary territory
•
Today:
– Eurozone: PMIs for
Germany, France, Eurozone expected to have risen; ZEW survey forecast to have
risen = EUR-positive
– Sweden:
Riksbank may hint at (or take) extraordinary measures.
SEK-negative
– UK:
CPI expected to slow; bank stress test results coming out
– US: Housing
starts & permits; preliminary Markit PMI expected to rise
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