New York Report: Wall St drops again on doubt over Fed policy August 7, 2013 US stocks fell for a third straight day yesterday on growing concerns over the longevity of the Federal Reserve’s stimulus policy, which has been widely credited with fuelling the market’s gains this year. Even after shares suffered their biggest decline since 24 June on Tuesday, the market was unable to shake off comments from a [...]
Initial analyst responses to Bank of England inflation report and Q&A August 7, 2013 Some reactions to the Bank of England's quarterly inflation report and governor Mark Carney's announcement of a forward guidance policy. Joe Rundle, head of trading at ETX Capital: Sensible Fed-style strategy adopted by dovish governor BOE Mark Carney, switching things up at the Bank of England since his occupancy started in July. At the press [...]
Bank of England rates unlikely to increase until second half of 2016 August 7, 2013 The Bank of England has introduced a US Fed style unemployment threshold, of seven per cent. Some analysts had anticipated this. UK unemployment was at 7.8 per cent in the three months to May. So we'd need about 750,000 more jobs to be created. In particular, the MPC intends not to raise Bank Rate from [...]
Inflation report look ahead: What the analysts are expecting from Carney August 7, 2013 All eyes on the Bank of England at 10.30 this morning, as the Inflation Report is unveiled. Several analysts are predicting that the central bank could adopt a Fed-style unemployment target. UK unemployment was at 7.8 per cent in the three months to May. Emily Nicol, Daiwa Capital Markets: The main policy event today will [...]
Strong exports up taper chance August 6, 2013 THE US trade deficit shrank 22.4 per cent to a three-and-a-half year low in June, official stats revealed yesterday. The US Commerce Department reported a trade gap of $34.2bn, with exports of goods and services up 2.2 per cent to a record $191.2bn. Analysts at Capital Economics said the data suggests that “second-quarter GDP growth [...]
New York Report: Stocks slide on Fed officials’ hawkish hints August 6, 2013 US STOCKS slid for a second consecutive day yesterday after comments from a pair of US Federal Reserve officials left investors uncertain about the timing of a possible reduction in its bond-buying programme. Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said the Fed could begin trimming the size of the stimulus programme [...]
Fed’s Lockhart says he wouldn’t rule out tapering in October August 6, 2013 The Fed's Dennis Lockhart has said that he wouldn't rule out tapering at the the October Federal Open Market Committee (FOMC) meeting. While analyst speculation has rested on tapering beginning in September or December, this upsets things somewhat. Rumours about tapering – or a reduction in the rate at which the Fed expands the monetary [...]
Daily FX: Analyst picks August 5, 2013 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Closed (half) short Aussie dollar-dollar Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few weeks The swaps market suggests a 91 per cent chance of a 0.25 per cent rate cut; so focus is on the policy statement. Reserve Bank of Australia [...]
Fed’s Fisher says QE taper should begin this Autumn August 5, 2013 Head of the Dallas Federal Reserve Bank has said that the Fed is nearly ready to begin tapering off its quantitative easing programme, and that he believes this should begin this autumn. In prepared remarks at a conference of pension fund administrators, Fisher was highly critical of the quantitative easing policy for doing little on [...]
Fed probably won’t raise rates until 2015 as US jobs market disappoints August 2, 2013 The US jobless market has come in weak, with only 162,000 new jobs in July (seasonally adjusted of course). Analysts had expected a number of 185,000, from 188,000 last month (revised down from 195,000). Reuters now report that the reaction by traders of short-term US interest-rate futures suggests that they think the Federal Reserve will [...]