The Dollar reaches its highest level versus the euro since 2003 “The market can remain irrational longer than you can remain solvent”. Supposedly the English economist John Maynard Keynes said this after suffering losses on a series of highly leveraged trades. He was then “humbled” by the market, a euphemism for losing badly. And yes, […]
The Fed raises interest rates, indicates more raises to come in 2017 and raises hope that the USA economy will thrive Decision day arrived for the FOMC and the most widely predicted and communicated rate rise in years was finally announced; the rate is now 0.75%. The accompanying narrative indicated that Janet Yellen, chair of
If not now when? DJIA closes short of 20,000, as FOMC decision looms “The market” is betting that there is a 100% chance of a 0.25% base interest rate rise being announced tomorrow by the FOMC (Federal Open Market Committee), at the start of its two day conference. Thereafter, market makers, movers, investors and traders
Oil slips back during Monday’s trading sessions as the reality dawns; USA shale extraction can now increase Most analysts recognise the necessity for both OPEC and the non OPEC members to rigidly stick to a production cut deal, in order for the current price rise to be maintained. The fact that past agreements have been
The Federal Reserve Hike Is A 100% Certainty, Apparently… The FOMC (the federal reserve’s open committee) meets for the final time this year on Wednesday. The expectation, courtesy of the analysts polled, is for a unanimous FOMC agreement to raise USA base rates by 0.25%, representing the first (and last) interest rate rise in 2016.
When did a trillion become so trifling? From time to time it pays to take a step back from our markets, in order to recalibrate our perceptions. Apologies in advance for the mixed metaphors but occasionally; “taking a view from the hill”, being able to “see the woods from the trees”, is essential in order
As USA equity markets reach record highs, has the Santa Rally started early? Bah Humbug! A Santa Claus rally is considered to be the rise in equity prices during the month of December, however, it’s generally seen (and limited to) the final week of trading, prior to the new year. This phenomena has occurred 26
Are banks now all too big to fail? History doesn’t repeat itself, but it does rhyme Mark Twain – “History doesn’t repeat itself, but it does rhyme.” Voltaire – “History never repeats itself. Man always does.” Occasionally, events occur that remind us of times gone past. Is it only eight years since the global financial
The markets remain calm after the Italian referendum vote In yesterday’s morning roll call we highlighted the immediate calm market reaction to the Italian referendum vote. Moreover, we suggested that the effects and the potential aftershocks of the NO vote, might not materialise immediately and might take some time to become apparent. We also suggested
Referendum decisions only signal the beginning of the process The Italian referendum NO vote market moves were subdued in comparison to that witnessed in the wake of the Brexit vote and Trump’s victory. Shortly after the markets opened on Sunday evening, gold was up 0.6% and yen had risen by 0.3% versus
