China policy support gains momentum
Jul 22, 2015 03:43 am UTC| Commentary
The PBoC monetary policy and policy to support equity markets and valuation are supportive of Chinese equities. Hong Kong-listed shares are preferrable.The room for monetary policy easing remains high, as the inflation and...
China monetary policy easing stabilises markets, as usual
Jul 22, 2015 03:39 am UTC| Commentary
In the current distressed market conditions, a large monetary policy response is the answer, only liquidity injections by the PBoC can stabilise the China market. Indeed, the central bank appears poised to do more in the...

BOJ's Kuroda's policy guided by ‘Adaptive’ inflation expectations
Jul 22, 2015 01:51 am UTC| Commentary Central Banks
Kuroda subscribes to a hypothesis that inflation expectations are adaptive, rather than rational, meaning that people form future inflation expectations based on past or current actual inflation. From his speech on 19...

Leading Australian index losing momentum
Jul 22, 2015 01:03 am UTC| Commentary
Westpac Research notes: The six month annualised deviation from trend growth rate in the Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months in the...
BOJ's inflation ‘goalpost' is 2 percent
Jul 22, 2015 00:23 am UTC| Commentary
Two-percent inflation is the BOJs stated goalpost, and the Kuroda BOJ is strongly committed to achieving it, but investors should not rule out the possibility that this goalpost becomes more flexible. A 2% inflation...
BOJ policy: Secular policy mix and an external factor
Jul 21, 2015 23:57 pm UTC| Commentary
Ending deflation requires a coordinated monetary and fiscal reflation policy. While Japan does not have the luxury of policy flexibility on the fiscal side, a premature tightening of fiscal policy will likely be avoided...

DM rates: What’s different in 2015; ECB, liquidity & corporate supply
Jul 21, 2015 23:36 pm UTC| Commentary
Seasonal patterns are usually best left to the numbers without second guessing with macro rationale. Nevertheless, there are two reasons why the impact could be exaggerated this year and one taking away from it. First, the...