EXCHANGE CORNER

Seven outcomes of the Fed’s pandemic response By Blu Putnam, Chief Economist, CME Group Highlights Fed asset purchases dampened volatility in long-term Treasury securities. Sentiment in US Treasuries has shifted from “Anxious” to “Complacent.” Change in sentiment reflects investor confidence in Fed’s actions. Market participants expect Fed to keep rates low for a long time. … Read More

Economic Spotlight: New Zealand and Australia’s Currencies By Erik Norland, Senior Economist, CME Group Highlights AUD is down 31% vs. USD since 2011, NZD is down 15%. NZD has outpaced AUD amid more robust growth, better export prices. NZD tracks EUR more closely than AUD due to export competitiveness. Interest rates in New Zealand and … Read More

New cases set back recovery, South Africa cuts rates to record low By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group Recovery Setback? Air travel in July was just 40% of pre-pandemic levels. New cases of COVID-19 set back recovery in bar-and-restaurant traffic. Rebound in credit card spending slowed in July as … Read More

View in your browser Dividends: Short-Term Optimism, Long-Term Concern By Blu Putnam, Chief Economist, CME Group Highlights Fed asset purchases support equities, reduce long-term bond yields. Short-term dividend expectations have rebounded with equities. Long-term expectations have flatlined amid economic uncertainty. Can economy make a V-shaped recovery like the equity market? Watch video

Metals’ tug of war and changing expectations for dividends By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group Metals: Caught in a Supply-Demand Tug of War Prices of most industrial metals have withstood shrinking growth. Spread of the coronavirus led to mine closures, reduced demand. Construction sector, China key to demand picking … Read More