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Are Central Banks Exaggerating Deflation Risks?

March 02, 2016
Deflation is portrayed as the great economic scourge. It exacerbates debt servicing costs and encourages consumers to defer purchases.  Central banks in Japan and Europe have responded with aggressive, unorthodox measures, often combining asset purchase programs with negative interest rates.  
However, deflation is not very deep, and the measuremen…
Are Central Banks Exaggerating Deflation Risks? Are Central Banks Exaggerating Deflation Risks?  Reviewed by Marc Chandler on March 02, 2016 Rating: 5
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Markets Take Another Step Away from the Edge

March 02, 2016
The angst that characterized the first several weeks of the year continues to dissipate. Major equity markets are extending their two-week recovery into a third week. Immediate concerns about the US falling into a recession have eased. 
The market have withstood some downward pressure on the Chinese yuan. Late yesterday Moody's cut its outlook …
Markets Take Another Step Away from the Edge Markets Take Another Step Away from the Edge Reviewed by Marc Chandler on March 02, 2016 Rating: 5
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Great Graphic: Gold Triangle--Continuation or Reversal Pattern?

March 01, 2016
During a period in which the zero bound no longer is the floor of interest rates, and many central banks continue to ease policy,  we have been watching gold a bit closer.  
In early January, we noted that the technical pattern warned of breakout.  Our first objective was $1110-$1135. 
In early February, we updated our view with gold trading near $…
Great Graphic: Gold Triangle--Continuation or Reversal Pattern? Great Graphic:  Gold Triangle--Continuation or Reversal Pattern? Reviewed by Marc Chandler on March 01, 2016 Rating: 5
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Great Graphic: Surplus Capacity is not the Same as Insufficient Aggregate Demand Great Graphic:  Surplus Capacity is not the Same as Insufficient Aggregate Demand Reviewed by Marc Chandler on March 01, 2016 Rating: 5
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Markets Find Steadier Footing

March 01, 2016
It could have been a disaster.  US faltered yesterday, with the S&P 500 again struggling in the 1945-1950 area, and China's PMIs were weaker than expected.  However,  after initial weakness Asian shares turned higher.  The nearly 0.9% rise allowed the MSCI Asia Pacific Index to close at its best level in five sessions. 
European bourses ar…
Markets Find Steadier Footing Markets Find Steadier Footing Reviewed by Marc Chandler on March 01, 2016 Rating: 5
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