ANNOUNCEMENTS

Negative rates and Europe’s stable FX, bond markets By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group Negative Rates: Four Real World Experiences Sluggish growth, low inflation led to adoption of negative rates. Four central banks, including ECB and BoJ, cut rates below zero. The goal was to increase credit flow, exports, … Read More

British pound’s Brexit orbit and do negative rates strengthen currencies? By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group The British Pound, Brexit, and the Pandemic Long-term trend shows British pound is swayed by UK-EU Brexit talks. Pound falls against euro when UK and EU move toward a ‘no-deal’ Brexit. In turn, … Read More

Sweden exits negative rates & oil weakens Norway’s krone By Erik Norland, Senior Economist, CME Group Sweden’s Experiment with Negative Rates Sweden takes the lead in exiting negative interest rates. Sweden’s Q1 economic activity outperformed the Eurozone’s. Swedish exports likely to fall amid sluggish Eurozone growth. Krona has fallen 19% against euro, 34% vs. US … Read More

Why Small-Cap Stocks are Lagging and Impact of Fed’s Asset Purchases By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group Why Large Caps Have Done Better Than Small Caps Russell 2000 small caps underperformed big caps by 15% Jan.-April. Small-cap stocks often outperform during times of economic distress. Could underperformance be due … Read More

The Widening Emerging-Developed Market Gap By Erik Norland, Senior Economist, CME Group The Widening Emerging-Developed Market Gap Fiscal stimulus in emerging markets has been much less robust than in the US and other Developed Nations. Emerging markets can mitigate the damage of the pandemic through other means: currency devaluation and short-term interest rate cuts. Large fiscal … Read More