The opposing forces on equities

13 May, 2016

In the US at least, there are opposing forces on equities. Continued low interest rates and limited expectations of further tightening are offering support, but at the same time, some of the indicators on the economy have been softening of late. Furthermore, most economic surprise indices for the US (difference between expected and actual) have been falling of late, reflecting this run of disappointment. So do equities trade on the economy or the easy policy? In the early days of the crisis, it was always the latter than dominated. Now, it’s harder for that, not least because the marginal benefit from low rates has diminished rapidly. So it’s hard to see the policy outlook pushing equities substantially beyond the highs seen mid-April. Today, the retail sales numbers in the US will be in focus, perhaps more than usual given the weakness seen in the retail equities of late relative to the overall index.

In the FX world, we’re seeing the dollar firmer into the end of the week, with the Aussie taking it on the chin and back below the 0.73 level. Cable also touching the 1.44 level, with yesterday’s volatility in the wake of the BoE Inflation Report largely behind it. Meanwhile, the Brazilian Real has shown a classic “Buy the rumour, sell the fact” move on the back of the much anticipated impeachment of President Rousseff. The currency has performed well, despite the on-going weakness in the economy and public finances. Now comes the issue of just how quickly a new regime can turn things around. It’s not going to be easy and the Real has already priced in a lot of optimism.


Source link  
Fed can form new basis for EM

Asian bourses remain moderately optimistic since the end of last week. Expectations are encouraging that the Chinese and Turkish authorities should...

Profit-taking after big sell-off

There is a demand for profit-taking in the markets after powerful movements at the end of last week and a very aggressive trading start...

Hot August for currency markets

This August seems hot. Not only temperature but also currency market volatility is rising. The period of active vacations, which is accompanied by a decrease in volumes...


Dollar is close to its important levels

The demand for dollar, provoked by the fears of new US sanctions against a number of countries and expanding trade conflict with China push the American currency close...

Trump raises stakes in the trade war

Two opposite trends prevail in the global markets. Strong reporting of companies, including Apple indicators supports the demand in world...

USD grows on high GDP expectations

The single currency is traded near weekly lows against the dollar, getting under pressure after maintaining the soft tone of the ECB during the regular meeting...


Facebook failure obscured optimism

Yesterday the markets enjoyed a rare portion of good news on international trade. Trump and Juncker agreed not to introduce new tariffs for the period of negotiations...

Trump tosses dollar from highs

The dollar remained under pressure after the Trump's criticism about the strengthening of the national currency. Despite doubts that the influence of the president...

Oil hits 3-month lows

On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets...


In the past 24 hours Bitcoin has gained 2.57% and reached $6485.139007. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.2108% and is now at $1.1431. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 2.62% and is now at $281.686287519. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro80%
5FIBO GroupFIBO Group77%
6FXCMFXCM73%
7AvaTradeAvaTrade68%
8HotForexHotForex67%
9Alfa-ForexAlfa-Forex66%
10XMXM66%
  


Share: