The dilemma that many investors are facing and possibly will continue to face till next Friday, is to Taper or no Taper. It seems like that traders are not paying attention to the old core fundamental values, which used to drive the markets, and the taper flare is heating up more amid investors. But, the…Read More
European markets are trading lower despite the fact that the US markets got closer to their all time high yesterday, and the S&P500 made another record high yesterday. Investors were surprised yesterday when the markets only saw a brief sell off after the FOMC member James Bullard confirmed yesterday that there may not be any harm to initiate a small…Read More
US markets closed lower for the 5th day in a consecutive session as traders have started to price in the fact, that the Fed maybe tapering soon, than initially thought. The evidence is in the recent data, which is almost consistently blowing pass the expectations, and yesterday’s GDP surprise jump to 3.6% was another evidence of this. The weekly jobless claims data released yesterday also came at a much better level than anticipated and this has reinforced fear among investor about early tapering.Read More
Only a few months ago we were looking at the possibility of a triple dip recession for the sterling economy, but things have changed dramatically since then, and this is the first time since 2006, that we are looking of a possibility of four quarters of positive growth for the UK economy. Investors have certainly welcomed this positive change, which took place due to strong macroeconomic policies introduced by the Bank of England, over this course.
If we look closely, we will see that the major driver for this growth was in the services sector, and this week’s PMI data does provide an evidence to support this argument. The reading of 60 which was posted this week was the best reading since the officials started to record this data. Even the manufacturing PMI data also suggested that the job growth output is at its highest level since 2011, and the export for the country has also increased at its fastest pace in nearly 19 years. The downside was the increase in the prices, which could certainly feed as an increase in the inflationary pressure for the country.
The Bank of England’s chancellor does have one major problem on his hand, which is the average income is still under the rate of inflation, and due to this reason many people do not believe that there has been any strength in this recovery. We think that this will be the key area in his speech that he will try to address, and there is a possibility that some measures could be announced aiming at lowering energy bills. Other measures which could be on the cards are lowering the business rates, personal allowances.Read More
US markets closed in a negative territory for the third consecutive day which is a confirmation that traders have finally started to take the profit off the table, ahead of the major news data- US jobs, which is due tomorrow. It does certainly make sense, and any intelligent trader/ manager should perhaps use this strategy,…Read More
European markets trading lower, as traders trigger profit taking; while Construction PMI for the UK is in focus
The sell off which we have seen yesterday could easily be blamed to trader’s fear that Fed could be initiating the tapering process a little earlier than anticipated, given the recent data is supporting this argument. However, we also are seeing some traders locking their yearly gain, especially when we have such a Stella rally in…Read More