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  
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...

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...

More Record Highs for Equities?

Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week...


US Data brings on USD bulls

U.S. job growth surged more than expected in June and employers increased hours for workers, with signs of a labor market strengthening that is likely...

Biggest Quarterly Drop in 7 Years

USD recovered marginally on Friday, but had its biggest quarterly decline against several currencies in nearly 7 years following hawkish signals...

Markets look to Central Bankers

Asian Equities traded higher on Tuesday approaching near two-year highs on Tuesday as USD strength helped exporters...


Global Economic Optimism Continues

Global equities moved higher on Monday as optimism continued to improve on global economic growth. However, USD...

BOJ Monetary Policy Remains Steady

The Bank of Japan maintained their monetary policy on Friday whilst upgrading their assessment of private consumption...

Final Confirmation for a June Rate Hike

The crucial US labour market data for May will be released today, June 2nd at 13:30 BST. It includes non-farm payrolls...

  


Share: