US jobs growth bolsters chance of Fed rate hike June 5, 2015 US JOB growth accelerated sharply in May and wages picked up, signs of momentum in the economy that bolster prospects for an interest rate hike in September. Nonfarm payrolls increased 280,000 last month, the largest gain since December, the Labor Department said yesterday. While the unemployment rate rose to 5.5 per cent from a near [...]
US stocks fell ahead of jobs data out today – New York Report June 4, 2015 US STOCKS fell yesterday, hit by nervousness ahead of today’s jobs report and lingering uncertainty over a Greece aid deal with creditors. Declining oil and gold prices also weighed on energy and materials shares, which led declines in the benchmark S&P 500. Data showed the labour market tightening, with first-time applications for unemployment aid down [...]
The US corporate debt market is close to boiling over – and Europe could be next June 4, 2015 How close is the corporate debt market to boiling over? Given the vast volumes of institutional and retail money that have flowed into high yield funds and other leveraged finance vehicles in recent years, it’s a key question for financial markets in both the US and Europe. For the last six years, corporate borrowers have [...]
From Field Day to the Chelsea Fringe, the best of summertime in London June 4, 2015 The summer season is finally upon us! This means music festivals, rooftop drinking and lounging around in the park. Don’t wait for the weather to arrive, take advantage of all the adventures you can have outdoors this weekend Field Day Saturday and Sunday, Victoria Park, fielddayfestivals.com This may have been Field Day’s [...]
Fed Fischer says he’s a fan of the BoE’s policy set-up June 2, 2015 Federal Reserve vice chairman Stanley Fischer has revealed he's a fan of the Bank of England approach to financial stability policy – with the creation of a separate committee devoted solely to it. "The British approach of setting up nearly parallel committees for monetary policy and for macroprudential financial supervision and regulation appears to be a [...]
Traders remain cautious as US rate hikes loom – New York Report June 1, 2015 LAST week’s losses were partly recovered yesterday, as stocks made modest gains in a session marked by cautious trading as investors reacted to mixed economic data. The Dow Jones industrial average rose 29.69 points, or 0.16 per cent, to 18,040.37, the S&P 500 gained 4.34 points, or 0.21 per cent, to 2,111.73 and the Nasdaq [...]
How the Fed will determine when to hike interest rates – DailyFX Tips & Picks June 1, 2015 IT WILL be an interesting week for those trying to figure out the Fed’s next move, and consequently for those trading dollars (as higher rates should increase demand for the greenback). Core personal consumption expenditures (PCE), non-farm payrolls, and the unemployment rate are all released. It’s these measures the Fed tries to control by raising [...]
US GDP beats expectations – but still falls by 0.7 per cent May 29, 2015 US GDP fell by 0.7 per cent in the first three months of the year, official statistics published today showed – better than the 0.9 per cent drop expected by analysts, but nevertheless a disappointing performance. The figure is a sharp fall from the 0.2 per cent growth originally estimated for the first quarter, although [...]
Yellen remarks signal change – New York Report May 25, 2015 FOLLOWING Fed Chair Janet Yellen’s confirmation last week that she expected the US central bank to raise rates in 2015, the market is expected to become choppier over the coming weeks. Though the process is expected to be gradual, with the timing of the first hike dependent on the strength of economic data, Yellen’s tone [...]
US interest rate hike: Are emerging markets in for a bumpy ride? May 25, 2015 Developing economies are better prepared to withstand higher US interest rates. A slowdown in global trade and investment growth, as well as a fall in commodity prices are dominating the outlook for emerging economies. Major central banks – notably China, India, Indonesia and Turkey – have focused on cutting interest rates to shore up [...]