Category

International Economy

March 24, 2020
0

Wall Street bounces on hopes of USD 2 trillion stimulus

By | International Economy

Bouncing from a three-year low on Tuesday on hopes of a major fiscal stimulus, Wall Street is looking to recover from the economic damage the coronavirus pandemic has caused.

Los tres índices más importantes de EEUU subieron más del 5% recuperándose de una caída masiva a causa de miedos recurrentes de una recesión a medida que países enteros continúan cerrando fronteras para prevenir que el virus continúe propagándose.

The S&P 500 has lost more than USD 9 trillion from its value in mid-February.

Also hopes are running high now that the U.S. Senate is looking forward to pass a USD 2 trillion stimulus bill aimed at providing financial aid to Americans out of work and help affected industries.

Also, there’s a separate proposal from Democrats in the U.S. looking to grant airlines and contractors a USD 40 billion bailout.

Industries worldwide continue to plummet as coronavirus continues to take its toll on international markets and its up to national banks to look for new ways to reactive economies as virus doesn’t look like stopping in the next few weeks.

 

Source:

Uday Sampath Kumar, Medha Singh (Reuters)

URL: https://www.reuters.com/article/us-usa-stocks/wall-street-bounces-on-hopes-of-2-trillion-stimulus-boeing-boost-idUSKBN21B187

Ecuador Economic Indicators:

Nominal GDP (USD millions): 108,398 (2018) 107,562 (2018)

Monthly Inflation: 0.09 (Ju-2019) -0.15 (Feb-2020)

Quarterly Urban Unemployment Rate: 5.57 (Jun-2019) 4.95 (Dic-2019)

Monthly Reference Active Rate: 8.74 (Aug-2019) 8.77 (Mar-2020)

Monthly Reference Passive Rate: 5.92 (Aug-2019) 6.24 (Mar-2020)

Balance Trade Balance% Accumulated GDP: 0.10 (Jun-2019) 0.12 (Ene-2020)

Public External Debt% Monthly GDP: 36.04 (Jun-2019) 38.08 (Ene-2020)

Balance of the Internal Public Debt of the Central Government (USD million): 16,626.16 (Jun-2019) 16,790.32 (Ene-2020)

Dow Jones Index: 26,135.79 (08-19-19) 20,116,19 (24-03-20)

Country Risk: 737 (08-18-19) 6,063 (23-03-20)

Source:

Banco Central del Ecuador (BCE)

URL: https://www.bce.fin.ec/index.php/informacioneconomica

August 21, 2019
0

Trump Urged Fed Cut of 100 Basis Points, Cites World Economy

By | International Economy

President Trump stepped up his assault on the Federal Reserve, urging it to cut the interests rates by a full percentage point as an aid to global growth while complaining the “dollar is so strong the it is sadly hurting other parts of the world”.

The president said “if that happened, our economy would be even better, and the World Economy would be greatly and quickly enhanced—good for everyone”.

The Fed cut rates last month for the first time in a decade and signaled it was open to doing even more amid slowing global growth and uncertainty over Trump´s trade war with China. Concern over this outlook has take its toll on financial markets sending treasury yields towards record lows, flashing recession risks.

Trump has relentlessly attacked the politically-independent central bank for raising rates in 2018, reaching the point where he began asking aides about his ability to oust the Fed chief in discussions reported by Bloomberg News in December.

Source:

Justin Blum (Bloomberg)

URL: https://www.bloomberg.com/news/articles/2019-08-19/trump-urges-fed-to-cut-interest-rates-to-boost-the-world-economy?cmpid=BBD081919_BIZ&utm_medium=email&utm_source=newsletter&utm_term=190819&utm_campaign=bloombergdaily

August 15, 2019
0

U.S. Stocks Retreat as Treasuries, Yen Advance: Markets Wrap

By | International Economy | 241 Comments

U.S. stocks dropped in thing trading and Treasuries rose as political unrest in Hong Kong continues to hit markets already on the edge over trade tensions. Meanwhile, Argentinian peso sank 15% after voters turned against the president on the primary vote.

The S&P 500 Index fell under 2.900 in a 11% volume under the 30-day average. This overnight session turned sour when authorities closed the Hong Kong airport, a Chinese official said the city finds itself in a “critical juncture” as of now.

The weakness on stocks fed demand for haven assets pushing the 10-year Treasury yield even lower and boosting the yen for a fourth day in a row.

This Mondays reversals provided another reminder of the fragility of the markets as well as the beginning of a tumultuous august. Gains for the safest Government bonds show lingering caution among traders who have increased their bets for central bank easing in recent weeks. As the U.S. and China continue to escalate their trade war and a slew of global data point to a slower growth.

Source:

Sarah Ponczek, Olivia Rinaldi (Bloomberg)

URL: https://www.bloomberg.com/news/articles/2019-08-11/stocks-to-dip-after-u-s-drop-as-caution-reigns-markets-wrap?srnd=premium

Ecuador Economic Indicators:

Nominal GDP (USD millions): 108,398 (2018) 108,398 (2018)

Monthly Inflation: 0.09 (Ju-2019) 0.09 (Ju-2019)

Quarterly Urban Unemployment Rate: 5.57 (Jun-2019) 5.57 (jun-2019)

Monthly Reference Active Rate: 8.74 (Aug-2019) 8.74 (ago-2019)

Monthly Reference Passive Rate: 5.92 (Aug-2019) 5.92 (ago-2019)

Balance Trade Balance% Accumulated GDP: 0.10 (Jun-2019) 0.04 (mayo-2019)

Public External Debt% Monthly GDP: 36.04 (Jun-2019) 35.85 (may-2019)

Balance of the Internal Public Debt of the Central Government (USD million): 16,626.16 (Jun-2019) 16,626.16 (jun-2019)

Dow Jones Index: 26,135.79 (08-19-19) 26,287.44 (11-08-19)

Country Risk: 737 (08-18-19) 706 (07-08-19)

Fuente: Banco Central del Ecuador (BCE)

URL: https://www.bce.fin.ec/index.php/informacioneconomica

August 15, 2019
0

Wall Street rises after strong retail sales data, Walmart earnings

By | International Economy

U.S. stocks rose in choppy trading this Thursday, as strong July retail sales show and Walmart´s upbeat results helped ease some fear about U.S. economy slipping into recession.

Cisco Systems Inc. dropped 6.2% becoming the biggest drag of all three major indexes, after the Dow component blamed the U.S.-China trade ware for poor performance this quarter.

This bounce on Wall Street comes a day after the blue-chip Dow index posted its worst day this year as recession fears gripped the market just after the inversion of the U.S. treasury yield curve for the first time in 12 years.

Considering that the Commerce Department said that retail sales rose 0.7% in July, this shows that the weakest economic data people keep pointing out is coming from outside the U.S., said Randy Frederick, vice president of trading and derivatives for Charles Swab in Austin.

China´s finance ministry said it would retaliate to the latest U.S. tariffs, however a spokeswoman for the ministry said later, “we hope the U.S. will meet China halfway, and implement the consensus of the two of the two countries in Osaka”.

Source:

Amy Caren Daniel (Reuters)

URL: https://www.reuters.com/article/us-usa-stocks/wall-street-rises-after-strong-retail-sales-data-walmart-earnings-idUSKCN1V519Z

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