Daily update
Daily update
- The Bank of Japan, well known for its masterful inactivity on policy, was masterfully inactive on policy today. A change to yield curve control in the first quarter is possible if wage data supports such a move—it is wise never to get too excited about Bank of Japan action.
- A number of Federal Reserve speakers have been "explaining" (which means "refuting") Fed Chair Powell's apparent dovish shift. The comments seem suspiciously coordinated. They don't mean rates will not be cut. They suggest markets should not get over-eager.
- Several nations are forming a naval task force to protect commercial shipping from attack in the Red Sea. The oil company BP suspended sailings there yesterday, which had a modest impact on the oil price. While container shipping may be disrupted, weaker durable goods demand in Europe blunts the macroeconomic impact.
- Final November Eurozone consumer price data is not a focus for markets as it almost never changes. US housing starts data is due but it is too early to see the effects of lower rates in these numbers. Fed speakers are likely to continue the coordinated market-calming commentary.
