Global growth has peaked for now – but no need to panic February 4, 2014 IT’S NOT time to panic about the global economy just yet. Yes, equity markets are in freefall left, right and centre but the situation is far from universally disastrous. Growth is slowing after a strong run but isn’t about to end. There’s little chance of broad-based global deflation. The Fed’s belated decision to reduce the [...]
US stocks pare losses as steady data calms bears February 4, 2014 US STOCKS bounced back yesterday, following Monday’s sell-off and the bigger slump that hit Asian markets, buoyed by better data on the health of American industry. The Institute for Supply Management (ISM) assessment of January factory conditions in New York came in slightly stronger than expected, and although factory orders fell 1.5 per cent from [...]
Could falling Japanese stocks see Abenomics end in tears? February 4, 2014 The Nikkei took the biggest hit of any advanced economy stock index yesterday, dropping over four per cent. The Japanese stock index is down by about 14 per cent from its December peak. Is Prime Minister Shinzo Abe’s radical easing policy slipping up? Despite fears of a new bear market, this isn’t even the biggest [...]
What you need to know before the US open – 04/02 February 4, 2014 US markets look poised to steady today, following yesterday’s shock manufacturing report. The numbers saw the S&P 500 experience its worst day since June yesterday, with both the dollar and global equities sliding. Global shares dropped to a near four-month low. But despite little in the way of data today to help investors plan a [...]
What you need to know before the open – 03/02 February 4, 2014 Another downbeat day anticipated after US and Asian markets plummeted, following surprisingly poor manufacturing data from the US. European stocks are expected to mirror counterparts this morning, opening lower: ETX Capital #morningcall: #FTSE100 down 43 points, the #DAX to slide 94 points and the #CAC40 to drop 38 points — ETX Capital (@ETXCapital) [...]
Janet Yellen sworn in as Federal Reserve chair February 3, 2014 NEW FEDERAL Reserve chair Janet Yellen was officially sworn in for her four-year term yesterday, the first woman to hold the top post at the world’s most powerful central bank. Before her promotion, she had been the Fed’s vice chair for three years, playing a major role in the development of emergency monetary policy in response [...]
Real emerging market risk is not repeat of 1997 Asian crisis February 3, 2014 Don’t prepare for a reversal in market’s appetite for risk anytime soon TO SOME analysts, the bloodbath in emerging markets over the past fortnight bears uneasy similarities to the early stages of previous full-blown emerging market crises. As a recent note by Brewin Dolphin pointed out, such episodes have historically recurred every 15 years or [...]
CNBC Comment: Don’t blame the Fed for sentiment swing February 3, 2014 WHAT is the difference between the global economy on the last day of 2013 and the first day of 2014? Absolutely nothing. And yet if you look at financial markets, you’d think that something dramatic had happened to send sentiment diving off a cliff after 1 January. What happened to the glorious 2013 rally, accompanied [...]
Pictures: Janet Yellen sworn in as Fed chair February 3, 2014 This afternoon Janet Yellen was sworn in as the first female Fed chair in its 100-year history. Yellen was sworn in by Fed governor Daniel Tarullo, the senior member of the Fed’s board.
Former Fed chair Bernanke to take Brookings job February 3, 2014 A big hire for Brookings. They've got former Fed chairman Ben Bernanke on board, after eight years at the head of the central bank. Bernanke's new title is that of "distinguished fellow in reisdence" at the Hutchins Center on Fiscal and Monetary Policy. Here's what David Wessel, director of the Hutchins Center, has to say [...]