Here we go again

26 January, 2016

The market’s ability to reverse any risk appetite at the moment indicates that we are not at the bottom yet of the current downward spiral. Chinese indices are 6% lower overnight, Japanese over 2% in the red and oil is back below 30 bucks a barrel. Volatility has been rising throughout the year so far but we’re still someway off the big spike in the Vix (volatility index or ‘fear gauge’) last August and so there’s potential for moves in markets to get even more dramatic.

The week builds up from today on the economic calendar front and the focus will be on central banks from tomorrow onwards. The Federal Reserve has confirmed that its FOMC meeting is due to go ahead tomorrow after concerns the recent snow storm would postpone it, then on Friday the Bank of Japan makes its latest monetary policy decision. Data releases from the US today will put the FOMC in the spotlight as we see the Case-Shiller Home Price Index expected to rise from 5.5% to 5.7%, after that the Markit services and composite PMI figures and then consumer confidence due remain stable at 96.5. Also worthy of note is that the Bank of England Governor Mark Carney speaks to the UK parliament at 10.45 GMT so we could see some movements in sterling. He’s been very dovish of late and along with the background concerns over the UK referendum on EU membership, the outlook for the pound remains bearish, having weakened some 7% on a trade weighted basis since mid-December.


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: