India hikes interest rates again. Will Turkey be next? January 28, 2014 As markets jitter from the tumult seen in emerging markets over the last few days, India has made the surprise announcement that it’s raising interest rates in a bid to quell inflation and respond to a vulnerable rupee. The Reserve Bank of India’s (RBI) has raised the benchmark repo rate – the amount at which it [...]
What you need to know before the open – 28/01 January 28, 2014 A mixed open for European markets today – slightly less jittery after Asian counterparts showed some signs of stability in Tuesday trading. Today’s UK GDP numbers are expected to show that the economy grew 0.7 per cent in the fourth quarter – that’s 2.8 per cent when annualised, which would be the best number since [...]
New York Report: US stocks down but Caterpillar climbs higher January 27, 2014 US STOCKS extended recent losses yesterday, with the S&P 500 falling for a third straight session as concern grew about the Federal Reserve’s plans for withdrawing stimulus. The losses, which picked up late in the session after the S&P 500 briefly traded in positive territory, followed a steep selloff late last week tied to emerging [...]
Emerging markets need a structural overhaul before they can return to favour January 27, 2014 PEOPLE talk about emerging markets as if they were one homogenous group, but nothing could be further from the truth. The only thing that really links Argentina, Turkey and Indonesia is that they all look vulnerable to further volatility in their currency, bond and equity markets. The diversity of the emerging market universe is such [...]
CNBC Comment: Mexico can withstand current volatility January 27, 2014 DAVOS is done, and chief executives are returning home to further volatility after last week’s emerging market-led sell-off. In December, the US Federal Reserve announced that it would start tapering its monthly asset buying from $85bn to $75bn. And tomorrow, its rate setting committee will inform us of both its latest rate decision (no change [...]
What you need to know before the open – 27/01 January 27, 2014 After Friday’s falls, European stocks are expected much lower this morning, bracing themselves for another day of volatility. US markets posted their worst daily declines since 2011, as emerging markets felt the full force of economic instability in Argentina, Ukraine and Turkey. Selloffs picked up apace, dragging down Europe and the US. Investors have been [...]
Investors braced for emerging markets chaos January 27, 2014 INVESTORS are bracing themselves for yet another day of volatility in the financial markets, as political problems in Argentina, Turkey and Ukraine, concerns about slower growth in China and reduced support from US monetary policy spook traders. A full-scale flight from emerging markets accelerated last Friday as shares in major economies were dumped in favour [...]
Wall St The Week Ahead: Apple, Google and Facebook earnings due January 26, 2014 US stocks could be set for another selloff this week as the Federal Reserve is expected to announce it will keep withdrawing its economic stimulus, further pressuring equities already roiled by a flight from emerging markets. Investor sentiment turned strongly bearish last week as emerging markets were hit by both country-specific problems and the realisation [...]
The Bank must at least discuss a rate rise: Its credibility is now on the line January 22, 2014 THE BANK of England must give serious consideration to raising interest rates. This doesn’t mean it should hike rates immediately. But the conditions under which rates would rise need to be clarified urgently. Forward guidance is being used to avoid this conversation. Ideally, guidance should be employed to reduce the discretion of policymakers over monetary [...]
DailyFX Tips & Picks: Analyst picks January 20, 2014 CHIEF STRATEGIST JOHN KICKLIGHTER My pick: Short sterling-dollar, long Aussie-yen and euro-sterling Expertise: Fundamental and technical analysis Average time frame of trades: 1 day to 1 week Full-scale risk aversion is a scenario that constantly circles the borders of the financial markets, but positioning for catastrophe is a game fraught with false starts. Until we [...]