Christmas rally commences?

7 December, 2015

The market is now pricing in over an 80% chance that the Fed will raise rates next week. For those still in the minority camp of expecting a rate hike in 2016, last week’s nonfarm payroll was yet further evidence to suggest the Fed will move on 16th December. It’s hard to hold onto a view when the latest data is heavily supportive of a hike this month. Ultimately it is economic conditions that dictate what will eventually materialise and just as financial markets move constantly, forecasters have to adapt their views to reflect those changing conditions.

Risk assets are set to open in the black this morning following a strong rally in US stocks last Friday after the nonfarm payroll data gave investors greater certainty over the Fed next week. For US indices the Christmas rally is under way, but the same cannot be said for European indices which remain below the levels they commenced December. For the FTSE near term resistance is seen around 6350 and in the Dax 11,100 is the near term hurdle. The economic calendar is quiet today but overnight there’s Japan’s Q3 GDP expected to see growth return to 0.0%.


Source link  
Fed Holds Rates for Now But...

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that...

UK Unemployment at 42 Year Low

UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment...

US Equities at Record Levels

US equities closed at record levels on Wednesday, as improved risk-on sentiment returned to the markets and news that the US economy...


USD Stabilizes

Hurricane Irma has, reportedly, inflicted less damage on the US mainland than was originally predicted, thereby reducing the economic impact of the devastation it was expected to...

Markets on Edge

With the markets risk appetite dampened after North Korea’s most powerful nuclear test to date, USD and Global equities fell whilst Gold, Yen and Sovereign Bonds all rose....

Risk Appetite Returns

North Korea official news agency reported on Monday that leader Kim Jong Un will watch the actions of the United States for a while longer before making a decision to fire missiles at Guam...


US-Korean Tensions Rattle Markets

Markets were cautious on Wednesday, as safe-haven assets pushed higher after tensions grew between the US and North Korea. Markets are concerned...

Global Manufacturing Grows

Recent data releases have shown that global manufacturing saw an increase in July, further confirming global economic momentum has carried into H2...

All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

  


Share: