No wind for indices sails

11 December, 2015

The Bank of England took a dovish stance yesterday expressing a more bearish outlook for inflation in the light of lower oil prices, causing a little softness in sterling. Crude prices continue their downward spiral with Brent heading to sub $40 a barrel levels again yesterday and we’re just there this morning. The recent weakness in the dollar has done little to help crude prices which you would usually expect to get a little support, meanwhile metals have seen some buying on the back of a slightly lower greenback in recent days. As we build up to next week Wednesday’s Federal Reserve interest rate decision we could see an increase in volatility as investors prepare themselves for the commencement of monetary tightening.

In this environment it’s hard to see much upside to equities and this morning is expected to see many European indices open slightly in the red. This year’s Christmas rally has yet to materialise and over the course of the year many indices are now no higher than where they were back in January. Unquestionably this has been a tough year for investors and is unlikely to get any easier as things start to wind down for the festive season. Today there is some US data to watch in the form of US Retail Sales at 13.30 GMT and Michigan Consumer Confidence at 15.00.


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: