Stabilisation doesn’t mean end to rout
2 September, 2015
For the second time this year some time out of the office has coincided with tumultuous movements in the financial markets. The first was back in January when the SNB removed its Swiss franc ceiling and a summer break has seen a considerable spike in volatility as Asian markets go into a tailspin. Not planning any more extended breaks for the rest of the year so perhaps the rout is over, but there remain a number of things that indicate this is unlikely to be the case. Whilst European indices are expected to bounce this morning, further evidence of a slowing China’s impact on the global economy came overnight in the form of weaker Australian GDP data. This pushed the Aussie down further to a fresh six and a half year low against the US dollar, finding support for now around the 0.7000 level.
Many central bankers have been citing their concerns over China throughout this year and the recent volatility will undoubtedly impact policy making. A rate hike from the Fed this month is looking less and less likely and this week’s nonfarm payroll number will play a huge role ahead of the decision on September 17th. Ahead of this today sees the release of the ADP private payroll data expected to come in at just over 200k and anything weaker than this will only serve to strengthen the argument for a December rate hike at the earliest.
Source link
Related materials
A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...
Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...
Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...
President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...
Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...
The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...
Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...
British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...
Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...
Top 10 Forex Brokers 2019
| 1 |  | 89% |
| 2 |  | 88% |
| 3 |  | 86% |
| 4 |  | 84% |
| 5 |  | 82% |
| 6 |  | 81% |
| 7 |  | 78% |
| 8 |  | 77% |
| 9 |  | 72% |
| 10 |  | 70% |