Markets

By cutting 50 bp in one swoop, the Norges Bank hopes to get ahead of the curve. This is part insurance against addition headwinds, but also responds to the recent data indicating an economic slowdown.

One of the characteristics of the investment climate that we have tracked over the course of the year is the tight relationship between the euro and the S&P 500. The following observations are based correlations conducted on percentage…

Here’s a couple ugly charts we’re monitoring: China’s Shanghai Composite stock index and Commodity Research Bureau Index (CRB). Do you think there’s causality here? Remember the “China is buying/hoarding every commodity” story?

Volatility tends to drop when market risk is building up and leverage is rising, luring investors into complacency. Indeed, the lower volatility justifies investors taking on more leverage; if volatility has dropped by a third, why not take…

Below is the press release issued by ratings agency Moody's in response to the most recent initiative in Europe to solve the sovereign debt crisis.

Three events took place last week that will shape the general investment climate in the weeks and months ahead.

Many were disappointed that the EU Summit didn’t conclude with a hard number backstop for the ‘zone’s sovereign debt rolling over next year. We believe if you scratch the surface the bazooka is there.

The following are the press releases Moody's issued this morning, downgrading the credit ratings of three large French banks.

Like many, we at the Global Macro Monitor believe the only solution to the European debt crisis is to write down bad debts, but we’re also realistic that it will take time because of the weak and highly levered balance sheets of many of the…

The ECB delivered the much expected 25 bp rate cut, though the decision was not unanimous. There was some immediate disappointment by some players positioned for the outside chance of a 50 bp move. The ECB addressed the liquidity and…