Reluctant New Highs for Equities

8 June, 2016

Stocks in the US squeezed out a new high for the year yesterday, but it has been a slow crawl higher in the wake of last Friday’s US Employment Report and the subsequent dovish tone to Yellen’s speech on Monday. Once again, this demonstrates the waning impact that low rates and monetary policy in general is having on stocks and asset markets in general. As for the dollar, it remains at 1 month lows on the main dollar index, having shed around 2% in the adjustment after the payrolls data. It also remains pretty un-interested in the US election primaries and the on-going story there, something that is likely to remain the case until we get much nearer the actual polling day later this year. The poll that continues to dominate markets is the UK EU referendum one in just over two week’s time. There was a surge in registrations as yesterday’s registration deadline passed, with two-thirds of those registering below 35, the cohort that polls suggest are more inclined to vote to remain in the EU.

For today, the ECB starts its corporate bond buying program, announced as part of its measures back in March. This should not impact markets, but there will be a focus in coming days on the success (or otherwise) of the program. We also see the New Zealand rate decision later today, where rates are seen steady at 2.25%, although there is decent risk of a move lower according. It mostly hinges on the housing market, which has remained pretty buoyant. We also see UK manufacturing data ahead of that.


Source link  
New Chinese stimulus promises

China continues to struggle for economic growth, as it aims to resist the effect of trade disputes with the U.S. The editor of an influential...

Best currency rally heading for a crash

The analyst who most accurately predicted the ruble's rally in the second quarter is now its most pessimistic forecaster. The Bank of Russia's switch to...

Trade truce 2.0, or new currency wars?

Tensions around trade wars subsided following news reports that both the US and China leaders are set to hold an extended meeting...


Experts predict where crude could go

A top military aide to Iran's supreme leader warned over the weekend that The first bullet fired in the Persian Gulf will push oil prices above...

Morgan Stanley sees global recession

Investors are overlooking the threat posed by the U.S.-China trade war, which could send the global economy into recession in less than a year...

Oil at $100: how will it affect economy?

Brent crude has risen about 33 percent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects...


Oil sector will lose 95% by 2050

Companies in the oil and gas sector, including large groups such as Shell, BP and Exxon, could lose 95% of their value by 2050 if governments...

The US economy recession by 2021

In a recent survey, most business economists believe the U.S. will fall into recession by 2021. Days after the market euphoria over a ceasefire in the...

Fed plans some further hikes

The U.S. Federal Reserve raised interest rates on Wednesday, as expected, but forecast fewer rate hikes next year and signaled its tightening cycle is nearing...

  


Share it on:   or