What you need to know before the open – 11/02 February 11, 2014 Europe is set to open higher again today, following yesterday’s consolidation of gains from Friday’s payroll numbers. Of course, markets await Janet Yellen's – the Fed’s new chair – speech to Congress later today. It’s likely she'll say future tapering is data-dependent. Over in Asia, markets strengthened ahead of Yellen’s appearance. ETX Capital #morningcall: [...]
Asian markets strengthen in countdown to Yellen testimony February 11, 2014 Asian shares are enjoying minor gains while gold prices have hit a three-month high, as markets wait to hear the new head of the Federal Reserve Janet Yellen's testimony before Congress. Markets are hoping Yellen will confirm that US interest rates will remain low and the Fed will give further detail regarding tapering. The yen [...]
New York Report: US stocks up as investors await Yellen speech February 10, 2014 STOCKS ended with modest gains yesterday as investors digested recent market gains and looked ahead to new Federal Reserve chair Janet Yellen’s first testimony before lawmakers. The Nasdaq was boosted by strength in large-cap tech and pharma names, but most market participants took a wait-and-see attitude ahead of the testimony, looking for confirmation that the [...]
CNBC Comment: Volatile markets threaten the IPO revival February 10, 2014 THE SELL-DOWN in emerging market assets has seen investors withdraw money at speed. And it may not be over yet. As Nomura analysts have pointed out, just because the selling has been vicious, it doesn’t mean it’s a crowded trade. But stepping away from the herd is private equity. Last year, these cash-hoarders scoured the [...]
What you need to know before the US open – 10/02 February 10, 2014 Today’s looking like something of a waiting game for US markets, as investors ready themselves for Janet Yellen’s first public appearance as Fed chair tomorrow, speaking to US lawmakers. It also looks like investors may be coming off Friday’s high. After equities rallied at the end of the week, futures suggest a slip at the [...]
German judges refer ECB’s bond-buying programme to European court. Here’s what you need to know February 7, 2014 European markets are muted and the euro is down 0.2 per cent against the dollar on the news that a German court has rejected the European Central Bank’s (ECB) bond-buying programme and pass it on to the European Court of Justice (ECJ). Why’s this happened? Germany’s constitutional court thinks the bank’s outright monetary transactions (OMT) [...]
Here’s why oil and gas won’t be the casualty that follows mining February 7, 2014 Despite mounting investor concern that the oil and gas sector could be “the new mining”, Berenberg doesn’t harbour such concerns. Depressed emerging markets, particularly the slowdown in China, slumped gold prices and worry over Fed tapering plans has meant an embattled time for miners. And while some of the world’s biggest oil companies have recently [...]
The ECB’s toolkit looks worryingly limited for tackling euro malaise February 6, 2014 THE CLAMOUR for further monetary easing from the European Central Bank (ECB) has become almost deafening. Despite this, the ECB yesterday decided to hold its interest rate at 0.25 per cent. As one journalist at ECB president Mario Draghi’s press conference griped, “Why won’t you simply cut rates!?” There are two fundamental reasons why the [...]
Letters to the Editor – 07/02 – Spillover effects, Charity lobby, Best of Twitter February 6, 2014 Spillover effects [Re: Global growth has peaked for now – but no need to panic, Wednesday] We’re all talking about the spillover effects of US monetary policy on emerging markets at the moment, but consider the situation over the next five to ten years. Governments across the West will surely embrace rising prices as a [...]
Markets calm as funds predict return to health February 5, 2014 CITY fund managers yesterday backed struggling emerging markets to return to health, as cooling volatility offered a brief lull after two weeks of turmoil. The MSCI emerging market index was flat, with equities at their cheapest since August. The turmoil began after the Fed began discussing tapering quantitative easing. Fund managers yesterday said the market [...]