Macro observations Data from both the US and China disappointed last week, and subsequent pressure on the US Dollar all but confirmed that investors’ attention is fixed there rather than on emerging markets. It’s all about monetary policy and, while markets tend to bet on stimulus and other sorts of meddling from the People’s Bank of China when there’s…
While many investors have sat on the side lines, lamenting Brexit and economic Armageddon in the UK, 6000 has become 6900. US stock markets have continued to make record highs despite having a central bank that’s desperate to have everyone believe it’ll raise interest rates. Of course markets there are very happy indeed that it…
The UK 100 index is now just 200 points from making fresh record highs. It’s been an incredibly strong finish to the week with the UK blue chip index shrugging off a heavy 36 point dividend impact on Thursday to break back above 6900 – a bullish sign that markets are reacting well to the…
8 Aug Telegraph Augustin Eden, of Accendo Markets, said: “A flat opening call comes after Chinese trade data disappointed, although a negative start was likely averted with market watchers noting that data lags reality, so this shouldn’t worry too much. Asian markets have in fact outperformed after Friday’s impressive US Jobs report. This served to strengthen the…
Macro observations One of the most pertinent drivers last week was the surprisingly strong US jobs report. US rate hike expectations increased on the news with the probability of a September move rising, but a December hike more likely still. Markets still appear to be pricing in neither, however, as US and global monetary policies diverge like never before. So…
How low central bank rates boost equities We’re living in a new era of very low central bank rates, so we’d do well to understand how they help boost equities! At face value it’s pretty simple: the central bank lowers interest rates which encourages people and businesses to put money to work in the economy,…