Industrial boost in China bucks world trends September 10, 2013 INDUSTRY in China performed unexpectedly well in August, with the highest growth rates in nearly a year and a half revealed yesterday. The Chinese economy has appeared to be more resistant to the effects of the looming tightening of US monetary policy, with less adverse reaction than other emerging markets in recent months. Production was [...]
Euro stocks may be turning a corner September 10, 2013 But investors should not ignore the risks surrounding relatively cheap equities in European markets SEPTEMBER has historically been a volatile month for markets. According to BestInvest analysis of FTSE All Share Index monthly returns since 1986, it is the worst performer for equities, with four major crashes: 1992’s Black Wednesday, the 9/11 terrorist attacks, [...]
Why it’s wrong to blame Osborne’s austerity for weak growth in Britain September 10, 2013 FIVE years ago, nearly every macroeconomist agreed that central banks determined aggregate demand (total spending in the economy), and that fiscal stimulus was therefore unnecessary to lift depressed economies. Conversely, fiscal austerity was seen as irrelevant at best for overall growth; any impact of austerity on demand can be offset by the right monetary policy [...]
Golf Comment: I won’t complain if Britons miss chance for FedEx Cup glory September 9, 2013 I WILL have mixed emotions watching the top British players try to qualify for the final round of the FedEx Cup play-offs this week, because if they don’t make it then I can include them in my Seve Trophy team for next month! The BMW Championship at Conway Farms’ in Chicago tees off on Thursday [...]
Strong US jobs data hints at Fed tapering decision this month September 9, 2013 THE LABOUR market is improving steadily, a top Fed official said yesterday, sustaining expectations the central bank will announce plans to slow down its money printing operations this month. The Fed is buying $85bn (£54.1bn) of market securities each month to stimulate the economy, and has previously said it will slow the pace as the [...]
Daily FX: Analyst picks September 9, 2013 CURRENCY STRATEGISTCHRIS VECCHIO My pick: Long dollar-yenExpertise: Fundamental and technical analysisAverage time frame of trades: A few hours to a few weeks US non-farm payrolls disappointed on Friday but dollar-yen closed the week above ¥98.80, the condition necessary to enter a long position. I took ¥99.10 at the close on Friday; and the news that [...]
Economists divided over crucial timing of Fed’s tapering plans September 8, 2013 AFTER poor jobs data raised questions over the trimming back of the US Fed’s quantitative easing (QE) programme, opinions are split as to when the much-anticipated tapering will begin. Meagre employment gains announced on Friday divided analysts’ views of how likely it was for the Fed to begin reducing asset purchases this month. The expectation [...]
Wall St The Week Ahead: Volatility likely as US debates strike on Syria September 8, 2013 US stocks could be in for a jolt of volatility this week as Congress debates whether to authorise a military strike against Syria and as the Federal Reserve’s pivotal decision on winding down stimulus nears. US equity markets have remained on a relatively even keel recently even as others such as US Treasuries and emerging [...]
US unemployment drops to December 2008 low despite weaker job creation numbers September 6, 2013 A weak number from the US gives nonfarm payrolls at 169,000 in August, from 104,000 seasonally adjusted jobs added in the previous month. That 104,000 is revised way down from 162,000 last month, and June's number see revisions from 188,000 to 174,000. So that's three weak numbers in a row. Markets were looking for a [...]
Fed’s Evans says monetary policy isn’t on a preset course but expects rates rise in 2015 September 6, 2013 The Fed's Charles Evans has said that the Federal Reserve should hold on tapering of quantitative easing – a reduction in the rate of expansion of the US' monetary base – until inflation picks up. Evans said that he expects the first Fed funds rate increase to come in late 2015, with unemployment below seven [...]