May 30, 2016
Wall Street reacted calmly to latest comments from U.S. Fed President Janet Yellen. Governor Yellen said on Friday that the U.S. economy is showing signs of strengthening and labor market conditions seem to improve, which could warrant another interest rate hike. Yellen’s statement drove rate hike speculations and could increase the chance of another step in the Fed’s monetary policy tightening cycle.
May 27, 2016
Stocks fluctuated yesterday amid a stronger oil price. Although the price for a barrel of Brent only temporarily exceeded the USD 50 per barrel mark in intraday trading, the rebound of the commodity provided investors some relief as this marked the highest level in six months. After the high the oil price retreated again this morning.
May 26, 2016
Stocks globally continued their rise yesterday as data releases in major economies have been stronger than expected as could be observed by the Citi Economic Surprise Index. This builds confidence among investors that the global economy is strong enough to digest a rate hike by the Fed, potentially as early as next month. So even if growth might stay weak, market participants’ fears of recession seem to wane.
May 25, 2016
In the autumn of 2014, the Federal Reserve stopped creating new US dollars and began parsing gradual increases in interest rates. That policy bias shift triggered a USD rally, a commodity slump, and gradually raised global financial market volatility.
May 25, 2016
Stocks in Europe and the U.S. surged yesterday after experiencing a suppressed start on Monday. Asian stocks followed the trend this morning with the Nikkei and the Hang Seng being up by 1.6% and 2.4% respectively. In the U.S. the gains were led by financial stocks as conviction among market participants rose that the Federal Reserve is going to raise interest rates this summer.