Thursday, August 18, 2016

The Fed back “dove” and away the tight on rates: positive markets – The Republic

MILAN – Hours 10:10. The minutes of the last Federal Reserve meeting, published late on Wednesday, have left reveal any intention on the part of the US central bank to accelerate the timetable for the second rate hike, after that of last December. The price lists have taken notice as a continuation signal of Washington’s support in this delicate phase of overcoming the uncertainty surrounding the Brexit, although many markets (beginning with Wall Street) have already been able to score new records. As evidence of this interpretation of the minutes is the good performance of emerging Squares and a falling dollar, signs of renewed risk appetite from investors.

The tones contained in the minutes of the Fed, known Bloomberg , they are much more accommodating than the latest releases of the central banker of New York, William Dudley, who was only a few days ago opened the possibility of a rate hike already from September. Use Agency, the strategist Rodrigo Catril National Australia Bank sums up the different positions emerged from Washington: “The message seems to be that close to September is possible, but it will not happen until there is consensus in the board on growth prospects, the labor market and inflation. and judging by the latest data, it can be inferred that a rate rise is not so imminent. “

The Fed returns & quot; Dove & quot; and  away the tight on rates: positive markets

The opportunities allocated by the market to a rise in US interest rates later this year have returned to get off after the minutes of the Fed. As you can see from the chart (white line), the expectations of tight on the cost of the money had fallen after Brexit, then take off again in recent weeks

the European markets, emerging from a weak day with Milan in black shirt, looking for the rebound. Square Business gaining 0.4% in line with Franconforte , Paris and London . The spread between Bund and BTP opened recently moved with 116.8 points with a all’1,089% yield. As mentioned, the greenback weakened and earn the ‘, that brings rose to $ 1.1315 from 1.1284 in yesterday’s close on Wall Street . The yen traded at 112.98.

In the morning the Asian markets were mixed of the Treaty, after the rift emerged within the Fed’s Federal Committee on whether to raise interest rates during the year. Tokyo (- 1.55%) continued the race to the bottom, weighed down by ’100th’ which has approached the relationship between yen and dollar. Declining even Sidney (-0.49%), while fared better Seoul (+ 0.57%) and Taiwan (+ 0.05%). Even brighter Hong Kong (+ 1%), while Shanghai (- 0.17%) has weak treaty.

The UK surprises with a positive figure for retail sales in July, so after the divorce referendum by the EU: have grown by 1.4% monthly and 5.9% on year. The figure is far beyond the expectations they expected a quarterly change nothing and a growth rate of 4.2%. The previous month, retail sales were down by 0.9% cyclical. The ECB showed that the current account surplus of the euro area fell in June to 28.2 billion, a minimum of four months. To note the decline in the Unemployment in France , which had stabilized at the beginning of this year, and fell by 0.3 points in the second quarter, to 9.6% of the workforce Metro and 9.9% in the whole country. US data are more relevant: requests for unemployment benefits, the the Philadelphia Fed index on consumer confidence and the so-called ‘main index’. Japan, meanwhile, recorded in July, a jump in the surplus of the trade balance above expectations: surplus of 513.5 billion yen (4.5 billion euro) against a deficit of 261.4 billion in the same month last year. Declining for the tenth consecutive month, however, exports.

Closing with final shot, last night, for Wall Street : downstream of the minutes “dovish” dovish, Fed the Dow Jones Industrial marked a progress of 0.12% to 18,573 points and the Nasdaq 0.03% to 5,228. Among the raw materials, the price of oil is declining: WTI drops to $ 46.83 (-0.23%), while the barrel of Brent drops to $ 49.75 (-0 , 20%). Rising for the third day the ‘ Gold , which takes advantage of the decline of the dollar.

LikeTweet

No comments:

Post a Comment