Investors are about to get very frightened as US unemployment drops like a stone December 6, 2013 US unemployment has fallen way faster than expected in November. For once that good news is good news to Wall Street. The headline unemployment rate dropped from 7.3 per cent to seven per cent. Analysts had predicted a fall to 7.2 per cent. You might think that this is unambiguously good news for the US [...]
Why today’s US jobs number is the most important economic event this week December 6, 2013 Later today, the most important data on the global economic calendar will be released: US nonfarm payrolls. The jobs report will be the most obvious sign yet as to whether – and when – the Fed will begin tapering its $85bn per month quantitative easing programme. The timing of a stimulus cut has preoccupied markets [...]
What you need to know before the open – 06/12 December 6, 2013 US markets finished lower for the fifth day in a row yesterday, as data came in ahead of expectations and investors await nonfarm payrolls later today. The surprise rise in US third quarter GDP, to 3.6 per cent, was well above forecasts. In Friday trading, Asian markets fell on the news. Better-than-expected data are fuelling [...]
London Report: FTSE falls for a fifth day amid US taper jitters December 5, 2013 BRITAIN’S benchmark equity index fell for a fifth straight day yesterday, its longest losing streak since March, as improving US economic data fuelled expectations that the Federal Reserve may cut its equity-friendly stimulus programme early. The US economy grew faster than initially estimated in the third quarter, data showed, encouraging bets that unemployment and non-farm [...]
New York Report: Wall Street continues its trek downward December 5, 2013 US stocks fell yesterday, with the Dow and S&P 500 dropping for a fifth straight session after a round of mixed economic data left traders guessing as to when the Federal Reserve would begin to slow its stimulus programme. The Dow and the S&P 500 are in their worst stretch since September. However, the moves [...]
US just stole Osborne’s limelight as it becomes rich world’s fastest growing economy December 5, 2013 US stock futures are now turning negative ahead of the market open at 2.30pm. That's because US economic data has been really good, and equities investors are petrified that the Fed will take away monetary support from the economy. Annualised GDP for the third quarter has been revised up to 3.6 per cent from 3.0 [...]
2 reasons why the dollar will be king in 2014 December 5, 2013 The dollar is set for a strong year in 2014 according to Deutsche Bank who have set out their bullish case for the dollar on Thursday. Here are the two building blocks of Deutsche Bank's bull case. 1. Monetary policy This year markets have focused on pricing out QE with treasury inflows suffering as a [...]
These three huge events could overshadow Osborne’s Autumn statement December 5, 2013 While investor and media attention will hang on what chancellor George Osborne will unveil at today's Autumn statement – we're not expecting anything significant. We'll probably see some token giveaways, and ever more complexity added to our tax regime in the form of hikes. The composition of measures that Osborne selects will be telling, but [...]
What you need to know before the open – 05/12 December 5, 2013 Markets await the Autumn Statement this morning, but it's unlikely to impact gilt yields, and we're not expecting a change in the Bank of England's rate decision, either. With 25 minutes to go the FTSE is forecast to start the day -10 at 6500. — David Jones (@DavidJones_IG) December 5, 2013 Japan's Nikkei [...]
Bottom Line: Banking on emerging markets is no longer such a sure-fire bet December 4, 2013 AHEAD of today’s Autumn Statement, George Osborne got an implicit rebuke over his repeated enthusiasm for raising the banking levy in Standard Chartered’s profit warning yesterday. The bank noted “a significant increase in the UK bank levy”. It anticipates a cost of $250m (£153m) this year, up from $174m in 2012. The levy has been [...]