Download PDF One of the biggest secular trends in central banking policy since its inception has been increased transparency through more regular and varied forms of communication. The hope is that by being transparent, market participants can price in the policy path more gradually, lowering the chances of wild bursts Read more…
In mid-September, there has been a liquidity crisis in the money market of secured overnight borrowing. We have analyzed this in an article published one month ago, headed “Liquidity Squeeze: What is the Repo-Scarcity Premium?”. Since then, the Federal Reserve proceeded to inject more than 230 billion over the period Read more…
United States The S&P 500 rose 17.14 points, or 0.8%, to close at 2,168.27 on Friday although the index was down 0.1% in September, the Nasdaq Composite closed at 5,312.00, adding 1.7% in September. Moreover, the Dow Jones Industrial Average gained 0.9% but fell 0.8% for the month. Analysts have Read more…
Fed hiking path explained
US Big news has struck the US economy this week and in particular the ones oil-related has had a strong effect on the market. The US economy has been once again the main driver of the fall in oil prices this week as the country’s stockpiles of crude last week Read more…
US After turmoil in the recent weeks US equities are back to all-time highs. Very solid data on consumer confidence and a Q3 GDP growth rate print of 3.5%, above a lower forecast of 3%, propelled the S&P 500 to 2018.05. Not even the completion of tapering on Wednesday stopped Read more…
US Last week’s losses were followed by some more, as the S&P 500 lost 0.75% to close at 1967.9 and the NASDAQ Composite and DJIA went down 0.81% and 0.6% respectively from their values at the end of last week. Stocks took a beating on Tuesday and Wednesday especially as Read more…
US Equity markets in the US lost ground this week, ending short of the fresh highs touched in the previous one. Macroeconomic data came in mixed, as a solid manufacturing PMI and positive data on new home sales on Tuesday and Wednesday were confounded by disappointing durable goods orders and Read more…
US US equities enjoyed significant gains in the week just past us after trading sideways for most of the summer. The S&P 500 was 1.25% above its closing value last Friday, closing now firmly above the 2,000 level at 2,010. The index clocked in its largest gains mid-week, on the Read more…
[edmc id=1641][/edmc] US This week has been full of economic data. The most relevant are the following: – Final GDP growth for 4th 2013 quarter q/q is 2,6%, still mainly driven by inventories. – Flash manufacturing PMI is at 55.5, a bit lower than expectations. However, this suggests a manufacturing Read more…
What game is the Fed playing? The Fed’s unconventional monetary policy so far has been a mix of Market policy (or, better, Balance Sheet policy) and Mouth policy. Indeed, great part of the job has been done “manipulating” expectations to make agents reacted to Fed stimuli the way it meant Read more…
Who is Janet Yellen, the woman everyone seems to be talking about these days? Why have we been hearing this name so often and what implications will it have on us? Well, we will presumably be hearing of Janet Yellen for quite a long time: last Wednesday President Obama nominated Read more…