More Record Highs for Equities?

17 July, 2017

Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week. Data released shows China GDP at 6.9% (markets had expected 6.8%), indicating the Chinese economy has stabilized. In addition, Chinese President Jinping said that “the central bank will play a stronger role in defending against risks” and he called for more work on safeguarding the financial system and modernizing its regulatory framework. The buoyant Global equity markets were also helped as Chicago Federal Reserve President Evans expressed concerns on Friday about the Fed’s inflation target running below 2% and that such economic conditions required a very gradual rise in interest rates. The most recent CME Fedwatch tool has seen the chances of a December hike in US rates fall to 43.1% from 55%. As global economic conditions improve, and with a degree of caution on raising interest rates too quickly, one can foresee global equities remaining strong and reaching new highs.

Japanese markets are closed today for Marine Day.

In relatively quiet early tradingВВВ EURUSDВВВ is trading around 1.1460, staying close its yearly high.

GBPUSDВВВ has been a major recipient of recent USD weakness and is currently trading around the psychological 1.3100 level.

With the Japanese holiday todayВВВ USDJPYВВВ trading has been lackluster and is currently trading around 112.60.

GoldВВВ has risen 0.2% so far on the day, to currently trade around $1,231.

After last week’s indication of lower US inventories and stronger demand, Oil has continued to move higher and currently trades 0.2% higher at today’s high of $46.90.

The major focus today will be the release of the Eurozone Consumer Price Index (YoY) (Jun) at 10:00 BST. With the markets expecting an unchanged number at 1.2%, traders will be interested to see how the Eurozone is fairing compared to other Global Economies and if the current increase in sentiment in Europe’s economies is holding true.


Source link  
Fed pushes down stocks

Markets have started the week under pressure. Expectations that the Federal Reserve will cut interest rates by 50 points in July collapsed...

Gold updates new 6-years highs

Gold benefits from a combination of two factors: lower interest rates in debt markets and continuing hopes that the global economy...

Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...


Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...

Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...

Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...


Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...

Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...

Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

  


Share it on:   or