11 September, 2017
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 cause. The hurricane caused flooding and tidal surges that knocked out power to 4 million homes and businesses in Florida. Meteorologists are now predicting that Irma will weaken to a tropical storm as it travels into northern Florida and Southern Georgia.
Markets had been concerned that another North Korean missile test would occur over the weekend, but such fears were allayed – such concern saw a flight to safe havens last week and a broad USD decline. There is still a concern, as the markets are now awaiting the UN Security Council’s vote later this week regarding further sanctions being imposed on the regime and how North Korea will respond. North Korea’s state run news agency stated on Monday that “North Korea is closely following the moves of the US with vigilance”.
Markets are also awaitingВВВВ nextВВВВ week’s Federal Reserve policy meeting, which will likely focus on economic growth following Harvey and Irma. In an interview with CNBC last week, NY Fed President Dudley commented that he had “marked down” his Q3 growth estimate “a touch” and further commented that US interest rates “are going to move gradually higher over time”. The markets will now focus on US inflation data later this week.
EURUSDВВВВ is unchanged from Friday’s close – currently trading around 1.2015.
USDJPYВВВВ is 0.2% higher in early trading, to currently trade around 108.38.
GBPUSDВВВВ is little changed over the weekend and currently trades around 1.3180.
GoldВВВВ is virtually unchanged and currently trade around $1,338.
WTI edged higher, by 0.6%, in early Monday trading, following reports that the Saudi Oil Minister has discussed extending a pact to cut global oil supplies beyond March 2018 with Venezuela & Kazakhstan. WTI is currently trading around $48.35pb.
At 13:15 BST, the Canadian Mortgage and Housing Corporation will release Canadian Housing Starts (YoY) for August. A robust Canadian economy led to the recent hike in rates by the Bank of Canada, so markets will be looking to see if the housing market is keeping up with demand by improving on the previous release of 222.3K.
The ECB dominated markets yesterday as they shifted their policy stance and signalled their exit from QE. The Bank is looking to reduce its bond buying by...
The FOMC raised rates by 0.25 bps yesterday evening to a 1.75% to 2.00% target range in a hawkish move and reaffirmed its expected forecast of 2 more...
US President Trump and North Korean Leader Kin Jong Un met in Singapore overnight. Progress was made between the two leaders during this first meeting...
Britain's statistics continue to indicate a slowdown in the UK economy. Today's data showed a decline in industrial production by 0.8% during April against...
Yesterday's trading session saw a rotation from the NASDAQ and Tech into the Dow Jones and Industrials. The European Indices have under preformed this week...
Yesterday's session was quite after a pickup in volatility last week and there has been little in the way of movement overnight. This is despite some negative...
On Thursday the markets failed to develop growth momentum. Investors favoured a cautious tone towards riskier assets as the US imposed import tariffs on Canada...
Reports suggesting that Italy has a chance to avoid new elections had a positive impact on world markets. European and American markets retraced the previous...
The political concerns in Italy are spreading across markets causing serious pressure on the banking sector. Global equities have lost about 1.5% in the past 24 hours...