Asian markets closed mix on the final trading of the week. Investors cheered the rebound on Wall Street yesterday and the German economic data firmed bull’s strength in the market. However, traders are still concerned that the Fed’s tapering program could trigger outflow of funds from the emerging markets. If the tapering does takes place this could certainly result in re pricing of the treasury yield and the 10 year yield could increase further by almost 2%.Read More
Tapering talk is back
European stock markets are trading lower during the early hours of trading. Investors have congregated their momentum from the Asian trading session where all of the indices closed lower for another day. European markets ore on tract to finish the second week in a negative territory. Tapering talk has started to manifest once gain in the market despite the fact that the FOMC member James Bullard confirmed yesterday that the incoming data is not sufficient enough for Fed to to trigger the button on tapering in their next September meeting. However, investors are confused on this and perhaps want to know that if they can get a clear statement from the officials if tapering is going to take in September meeting or not.
Tapering talk is back
European stock markets are trading higher during the early hours of trading. Investors have congregated their momentum from the Asian trading session where all of the indices closed up for another day. The tapering talk picked up its steam once again after last night when the FOMC member Lockhart confirmed that the incoming data is not sufficient enough for Fed to trigger the button on tapering in their next September meeting. However, he confused the investors later by saying that the tapering could take place in any of next three FOMC ‘s meeting and blamed this is due to the bumpy nature of the economic data index.
Nikkei off from its six weeks Low due to stimulating growth policy
European stock markets are trading higher during the early hours of trading. Investors have congregated their momentum from the Asian trading session where all of the indices closed up for another day. The Nikkei index which closed strongly lower yesterday toward its six weeks low also bounced strongly on the back of the news that the Japanese prime minister is finally getting his act together and introduced another growth stimulus policy. Mr Abe Shinzo confirmed today that he may consider reducing the corporate tax in the country which has pushed the Nikkei index well off from its six weeks low.
US losing steam, BOJ not stepping off from gas, Europe’s GDP data and Greece debt relief payment in focus
Europe up despite US losing steam
European stock markets are trading higher on the first trading day of the week and this is despite the fact that the US markets may be losing their steam. The US markets shuddered their winning streak last week when the indices closed in a negative territory for the first time during the past 6 weeks. This could be down to the fact that the investors are apprehensive about the Fed’s tapering program and the uncertainty about the timing of this tapering. Given the string of a positive economic data, it may be safe to say that there is little hope of Fed’s keep their taps running of their ultra loose monetary policy.
Asian markets closed higher on the final trading of the week. The economic data released in China showed that the country’s economic growth may be picking up once again. July’s consumer price data released today came in at 2.7% which was in line with the June’s reading but slightly weaker than expectations.Read More