The U.S. Federal Reserve’s probable policy shift at the upcoming Sept. 17-18 meeting to begin paring back the pace of its asset purchase program poses a challenge to investor allocation decisions. The Fed’s low-interest rate policy has achieved some success in boosting risk-taking among investors. Some measures of U.S. equities valuations, Tobin’s ‘Q’ for example, have moved back to fair value after recording severely undervalued readings during the Great Recession. Click here [...]
Currency traders should be paying more attention to the middle and the long end of the U.S. Treasury curve than the short end. To continue reading click here
Investors in Asia face a pending withdrawal of Federal Reserve liquidity and simultaneous stresses in the region’s three largest economies. China is slowing investment to rebalance its economy toward consumption, while Japan is debasing its currency to stoke exports, and India is caught in a vicious circle of weaker investment and growth. Click here to continue reading.
NEWS: The Shanghai Composite Index surged as much as 5.6 percent in the biggest intraday jump since March 2009, spurring the exchange to investigate the spike. Angela Merkel said the European debt crisis hasn’t been overcome as she repeated in a speech that governments should cut debt. To read more, click here.
WHAT TO WATCH: U.S. initial jobless claims probably rose to 335,000 in the week ended Aug. 10, 8:30 a.m. U.S. industrial production climbed 0.3 percent in July for a second month, 9:16 a.m. The Federal Reserve’s James Bullard speaks on the U.S. economy and monetary policy in Kentucky, 8:15 a.m. U.K. retail sales climbed 1.1 percent in [...]
WHAT TO WATCH: U.S. wholesale prices probably rose 2.4 percent in July from a year earlier, according to forecasts, 8:30 a.m. The Federal Reserve’s James Bullard speaks on monetary policy in Kentucky, 2:15 p.m. The U.K. unemployment rate remained at 7.8 percent in the second quarter. Euro-area GDP rose 0.3 percent in the three months through June after shrinking for [...]
WHAT TO WATCH: U.S. retail sales probably rose in July for a fourth consecutive month, according to forecasts, 8:30 a.m. The Federal Reserve’s Dennis Lockhart speaks on the economy in Atlanta, 12:45 p.m. Euro-area industrial output expanded less than economists estimated in June. U.K. inflation slowed from a 14-month high in July, led by airfares and summer discounting at clothing stores. [...]
WHAT TO WATCH: The euro-area economy probably edged back to growth of 0.2 percent in the three months through June, for the first time since 2011, economists forecast before GDP data on Wednesday. Japan’s economy slowed more than forecast in the second quarter as businesses cut investment. To read more, click here.
WHAT TO WATCH: U.S. initial jobless claims probably rose to 335,000 last week from 326,000 the previous week, 8:30 a.m. Bank of England Governor Mark Carney said the country is “in the very early stages” of its economic recovery, signaling interest rates will stay lower for longer. China’s exports and imports rebounded more than estimated. German exports rose in June. [...]
WHAT TO WATCH: U.S. consumer borrowing probably climbed $15 billion in June, according to forecasts, 3 p.m. Cleveland Fed President Sandra Pianalto speaks, 1:40 p.m. The Bank of England for the first time linked the outlook for its benchmark interest rate to unemployment and inflation and will keep its current policy “at least” until the jobless rate falls to 7 [...]