Federal Reserve strikes dovish tone to calm inflation fears May 26, 2021 The Federal Reserve last night reaffirmed its dovish approach to monetary policy, reassuring investors concerned about rising inflation. Fed vice chair Richard Clarida said the US central bank would be able to curb an outbreak of inflation and ensure a “soft landing” without hampering the country’s economic recovery. Fears have been mounting among investors about [...]
US inflation sees biggest leap in nearly 13 years May 12, 2021 Consumer prices in the United States shot up 4.2 per cent in the 12 months to April, which could add fuel to market fears of a lengthy period of higher inflation. The jump marked the biggest increase in consumer prices since June 2009, and the biggest inflation gain since September 2008. The jump also followed a [...]
Myth-Busting: Money printing must create inflation May 11, 2021 | City Talk London ranks ninth on the UBS Global Real Estate Bubble Index for residential properties. Like in many other countries, property prices in the United Kingdom reached an all-time high in 2020. A global pandemic with sudden mass unemployment should have forced UK citizens to sell their homes, but the furlough policies, stamp duty holidays, and record-low interest rates [...]
Before the Bell: The Fed will not pull away the punch bowl just yet May 10, 2021 Friday’s historical non-farm payrolls miss has been a sigh of relief for global markets, because it means the Federal Reserve won’t pull away the punch bowl just yet. The excess liquidity is here to stay, the historically low funding costs as well. Therefore, “we will most probably see a strong investor appetite for both growth [...]
City A.M. TV: Daily Market Snapshot April 30, 2021 Its been a fascinating month for global equity markets in April. Three key themes have dominated: i) a weak US dollar (and strong currencies elsewhere); ii) a strong US company reporting season (with that replicated in other parts of the globe); & iii) a Fed meeting and a reiteration, once again, of the Fed’s super [...]
City A.M. TV: Daily Market Snapshot (video) April 26, 2021 Since early April, US equity markets have been in a persistent uptrend. That’s been is aided and abetted by (i) notable US dollar weakness; (ii) lower bond yields (resulting in tech outperformance); and (iii) a strong Q1 earnings season, with most US companies surprising markets to the upside. In that respect, and while US equity indices [...]
Set the tone: Central bankers can move markets or ease volatility based on their vocal pitch April 21, 2021 When it comes to absorbing shocks, boosting stocks or reducing volatility markets take their cues from the tone of voice central bankers use
Netflix catches a chill while inflation is knocking at the door April 21, 2021 When you see American Airlines fall 8 per cent because it announced a bigger-than-expected loss in the first quarter, you are fine with that information. But when you see Netflix plunge 10 per cent after-market because it missed estimates, that’s a shocker. Netflix surprised to the downside yesterday, according to Ipek Ozkardeskaya, a senior analyst [...]
New US jobless claims jumped last week to 770,000 March 18, 2021 New US jobless claims unexpectedly jumped last week to 770,000. Initial claims for state unemployment benefits came in at a seasonally adjusted 770,000 for the week to 13 March, the Labor Department said today. The week before new US jobless claims came in at 725,000 people seeking benefits. Today’s numbers were worse than what economists [...]
US Fed surprises with 6.5 per cent growth prediction and leaves interest rates on hold March 17, 2021 US Fed surprises with 6.5 per cent growth prediction and leaves interest rates on hold