Trump’s election tax pledge was back on the agenda on Wednesday, this potential reduction of tax, to a suggested 20%, from the current rate of circa 35%, was part of the reason U.S. equities rose sharply during the day. That planned and promised reduction is also the key reason equities have risen since Trump’s inauguration, […]
EURO Versus the majority of its peers, the euro sold off during Tuesday’s trading sessions. The prevailing concerns, with regards to the inconclusive German Federal election on Sunday past, still appear to be weighing heavily on investor sentiment. Allied to this, Eurozone inflation is forecast to remain under the target, which the ECB had provisionally
A Pyrrhic victory is a victory that inflicts such a devastating toll on the victor, it’s tantamount to suffering an actual defeat. Someone who obtains a Pyrrhic victory has been victorious, although the heavy toll negates any true sense of achievement, or profit. Whilst not (by definition) a Pyrrhic victory, Angela Merkel, the current and
The reaction of markets during the early part of the week may be as a consequence of politics as opposed to economics, as (once again) the: inflammatory language of Trump versus North Korea looks set to be raised. Not withstanding this ongoing situation, the German election fallout will be digested, as will be the vague
Markets likely to be moved by politics as opposed to economics on Monday Read More »
After the hawkish narrative, delivered by the FOMC on Wednesday, USA equity investors appeared to take a collective time out on Thursday. Perhaps an atmosphere of puzzlement developed within dealing rooms and across various chat facilities, as the question; “where to next, what happens next?” took hold. U.S. equities slipped, as trading remained stuck in
The FOMC announced no rate change, at the conclusion of their two day meeting on Wednesday evening, the key rate of 1.25% remains unchanged. However, in the accompanying narrative, they suggested that one more rate rise could happen in 2017, with December the likely date. And as from October they’ll begin to relieve and gradually
President Trump delivered a jaw dropping first address to the U.N. assembly on Tuesday, in which he lashed out at just about everyone and everything, whilst voicing his overused and meaningless mantra; “to put America first”. From threatening to “totally destroy North Korea”, to insisting that the Iran truce, so delicately put together by the
We’ve become accustomed to many new buzz words and phrases since the various credit crises developed back in 2007/2008: TARP, asset purchase, credit crunch, ZIRP (zero interest rate policy), NIRP (negative interest rate policy), taper, taper twist, helicopter money etc. And how could we ignore the most infamous nuspeak of “Q.E.” (Quantitative easing). Well now
Last week was a (relatively) quiet week for: economic calendar news and events, market moving Trump tweets, whilst the narrative causing tensions with North Korea, also appeared to recede. Perhaps it was that stability and a return to a focus on key data, which created an environment and the underpinning sentiment, allowing fundamentals to determine
Not only did the pound surge versus its peers earlier in the week, after CPI inflation reached 2.9%, when the latest inflation figures were released on Tuesday, sparking rumours that the BoE might raise rates on Thursday, sterling then spiked when the “no change” base rate announcement was actually made. It surged as a result
