Temporary return of risk appetite

5 October, 2015

Risk assets are to be given a boost this morning following a very strong end to the week for US indices last Friday and a buying frenzy in Asia overnight. Even Glencore, the recently much unloved stock that was looking like it was going to be the commodity sector’s first ever Lenham Brothers, is rallying strongly up over 12% at the time of writing, firmly back above the 100p level at the open in London’s session. The return of investor appetite has been fuelled by last Friday’s poor nonfarm payroll data which pushed the expectations of a December interest rate hike out causing dollar weakness and a spike in US Treasuries.

This week the focus remains on central banks with the Bank of England set to announce its rate decision on Thursday where the focus will be on whether any other hawks join the lone voter Ian McCafferty calling for a hike in rates. Today sees the usual beginning of month services PMI survey data for the Eurozone and UK, as well as Eurozone retail sales and then we get services PMI from across the pond later this afternoon. It will be interesting to see how these PMIs are faring in the current environment as even before the recent turmoil in the financial markets some survey data was starting to soften.


Source link  
USD Index Retesting Significant Lows

The Economic calendar for today is very light, with main events in focus for the European trading session concentrating around German PPI...

Economic calendar is relatively light

Today is Martin Luther King’s Birthday, which is a Bank Holiday in the United States. As a result, the Economic Calendar is relatively light today...

US Tax Bill passes

On Wednesday, the US Senate approved the tax bill 51 for and 48 against, while the House of Representatives gave it final approval, passing it for the second time in two days after...


US dollar 'treading water'

USD is treading water ahead of the expected enactment of President Trump’s tax bill. The initial euphoria of lower corporation tax, that many...

CB Monetary Policy Unchanged

Thursday saw the latest Monetary Policy Committee (MPC) report from the Bank of England. The BoE stated that further modest increases...

No Surprises as Fed Raises Rates

The Federal Reserve, as expected, raised its benchmark interest rate by a quarter of a percentage point, to a range of 1.25% to 1.5%. The latest hike...


CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...

No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

Moderate Gains for USD

On Monday, the US Commerce Department released Factory Orders data for October, indicating that the continued strength in the Manufacturing...

  


Share: