That european equities are largely on holiday and think that trend does actually continue. The stoxx 600 is down by 1. 1 today. Theres a big china effect, but in this youre looking at names like hsbc, which has a u. K. Effect as well, but also a chinese effect. Plus some of the miners acting as a little bit of a drag. So stoxx 600 down, maybe moving away from that 460 level. The names that i think are actually interesting today speak kind of against that narrative. The european consumer seems to be alive and well right now. The u. K. Consumer seems to be alive and well right now, which is surprising considering what is being chucked at them. Marks and spencer, the stalwarts of the british high street, has been revamping its stores, refining its strategy. Its beginning to work. Theyve upgraded their numbers. But its interesting, its not just in clothing. Its also in high end groceries as well. This is fascinating. This was unexpected. Marks and spencer responding to it. Look at that sha
Over the past 25 years, central banks in emerging Asia have improved their monetary policy frameworks, helping to anchor inflation expectations and support broader macroeconomic stability. While this has also contributed to enhancing the resilience of Asian economies .
Sebastian Edwards, Luis Cabezas 08 April 2021
The nominal exchange rate plays a dual role in macroeconomic adjustments – it is part of the transmission mechanism of monetary policy, and it also helps accommodate external and domestic shocks through its effect on the real exchange rate. This column uses disaggregated price index data from Iceland to test how exchange rate pass-through varies with the international tradability of goods and with the monetary policy framework. It shows that pass-through is significantly higher for tradables relative to nontradables. In addition, it finds that improvements in the credibility of the central bank are associated with declines in the exchange rate pass-through.