When will the Bank of England hike interest rates? January 3, 2014 Next Thursday is the first meeting of the year for the Bank of England's (BoE) Monetary Policy Committee (MPC). And whilst January is known to be uneventful in monetary policy terms, and the Bank's made it clear that an interest rate hike from the current 0.5 per cent is not on the horizon, doubt is [...]
Why 2014 could be the year gold bounces back January 3, 2014 2013 was a dire year for gold prices, and today's two per cent gain does little to make the 28 per cent slump of last year look any better. But Capital Economics reckons that, with sentiment already so heavily negative, the risks for the coming year are firmly skewed to the upside. For starters, says [...]
What you need to know before the open – 03/01 January 3, 2014 A quiet and steady open is expected for European markets today, as significant data releases remain thin on the ground. US markets closed lower after their first day of trading in 2014, following data that suggested a slowdown in Chinese and US manufacturing expansion. From ETX Capital: At 0430 BST today, FTSE 100 futures are [...]
Here’s why Capital Economics thinks gold will bounce back this year January 2, 2014 2013 was a dire year for gold prices, and today's two per cent gain does little to make the 28 per cent slump of last year look any better. But Capital Economics reckons that, with sentiment already so heavily negative, the risks for the coming year are firmly skewed to the upside. For starters, [...]
This analyst thinks consensus is wrong when it comes to US bond yields in 2014 January 2, 2014 Consensus view for growth in the US economy is nothing to shout about, says Societe Generale's Kit Juckes: 2.6 per cent, with CPI inflation coming in at a modest 1.7 per cent. Whilst there's nothing alarming about this, the economics community is looking for a 0.84 per cent two-year Note yield – the highest [...]
Why you’d be “quite stupid” to stay out of the equity game in 2014 January 2, 2014 According to Saxo Bank's Head of Equity Strategy, Peter Garnry, 2014 is still a good year for equities. Despite worries that US Fed tapering will prompt a major correction, Garnry says there's still plenty of value to be had. Equities are drift assets… they rise because of nominal price increases… you would expect them to [...]
Why it’s not such bad news that gold was a terrible investment this year December 30, 2013 12 straight years of growth came to an end for gold this year. Today, the yellow metal fell one per cent in trading, and it's heading for its biggest annual loss in 32 years – a drop of almost 30 per cent. A growing appetite for risk, and the prospect of a global recovery and [...]
What you need to know before the open – 30/12 December 30, 2013 A more subdued day of trading is expected today, in the second-to-last session of 2013. Sedentary start to today's penultimate session for the year in Europe! – FTSE +4, DAX -10, CAC unchanged — David Buik (@truemagic68) December 30, 2013 European bourses have been seeing strong gains over the last two weeks, with [...]
The Federal Reserve’s favourite measure for the US economy just came in weak December 23, 2013 One key measure of US economic health just missed analyst expectations. Core personal consumption expenditure increased by 1.1 per cent in the year to November. Analysts had expected a rise of 1.2 per cent. John J. Hardy, head of FX Strategy at Saxo Bank, says "the inflation/disinflation debate has been the hottest theme going in [...]
What you need to know before the open – 23/12 December 23, 2013 The FTSE 100 is expected to open higher on the last full day of trading before Christmas. Volumes will however be thinner than usual with many investors enjoying the festive season and limited news releases to trade on. Last Friday saw the best week for European stocks in eight months. They're now expected to get [...]