Economic stimulus hope boosts mood of investors October 5, 2010 US stocks rallied to nearly a five-month high yesterday on growing conviction that central banks will do even more to bolster struggling economies worldwide. The Bank of Japan lit the fuse overnight when it unexpectedly cut rates closer to zero. This move came as markets increasingly believe the US Federal Reserve will stimulate its economy [...]
Buy City offices for steady income October 5, 2010 CONFIDENCE in UK property has plummeted over recent months. The recent commercial property confidence survey conducted by Lloyds showed that almost half of property professionals now think that property prices will stay flat over the next six months (up from 36 per cent in May). So is now the time to ditch commercial property and [...]
Track records no guarantee October 5, 2010 THERE is nothing institutional investors dislike more than uncertainty since it robs them of their ability to plan for the future. This has led some institutional investors, in particular wealth managers and fund selectors, to exclude funds without a record of at least three years. The rationale is straightforward: looking at past performance allows investors [...]
FUND MANAGEMENT NEWS October 5, 2010 RECORD 2010 EXPECTED FOR SOME FUNDS A number of fund groups are on track for record-setting years, according to flow data provider EPFR Global. Emerging markets, US and global bond funds as well as global emerging market equity funds are likely to experience record inflows in 2010. Against a backdrop of soaring equity markets and [...]
Don’t go with the flow October 5, 2010 WHEN Brazil’s finance minister Guido Mantega last week warned of an international currency war, he said what many other emerging market policymakers were privately thinking. Competitive devaluations have become a hot topic of discussion and there are growing calls for an international accord to help coordinate a rebalancing of the global economy. According to the [...]
AUSSIE WILL HAVE TO WAIT TO HIT PARITY October 5, 2010 DIRECTOR OF CURRENCY RESEARCH, GFT Yesterday’s decision by the Reserve Bank of Australia (RBA) to keep rates steady surprised the currency markets and sent the Aussie tumbling in reaction to the news. Prior to the release traders had been relatively certain (75 per cent) that rates would increase by 25 basis points. In fact, over [...]
Fundamentals fail to offer a clear picture October 5, 2010 EVERY day there seems to be further bad news from the Eurozone’s periphery. Only yesterday Moody’s rating agency warned it might downgrade Irish bonds. Yet the euro continues to rally against the dollar, reaching $1.3833 yesterday at 6.45pm. The market just does not seem to care what trouble the Eurozone stirs up. All eyes are [...]
FOREX ANALYST PICKS October 5, 2010 FOREX STRATEGIST ILYA SPIVAK My pick: Short euro-US dollar (pending market moves) Expertise: Global macro Average time frame of trades: 1 week-6 months Euro-US dollar has put in a bearish dark cloud cover candlestick formation following a test of resistance at the $1.38 figure, hinting that a turn lower may be ahead. Confirmation is required [...]
THE TIPSTER October 5, 2010 D ESPITE widespread dollar weakness for the US greenback against the Mexican Peso, the pair has not done so badly in the last month and now sits on a good support level offering a possible buying opportunity. Capital CFDs quotes a price of peso12.5500-peso12.5700 for dollar-peso. The Bank of Japan announced yesterday that it will [...]
FSA will flex its muscles over bonuses October 5, 2010 MISHCON DE REYA CITY bonus rounds are always an interesting time, but this year’s promises to be more fascinating than most. This is because it is the first time we will see the impact of the new version of the Financial Services Authority (FSA) Remuneration Code. The first version of the code, which was introduced [...]