The US Fed – caught in a Goldilocks environment?

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The US Fed – caught in a Goldilocks environment?

29.04.2016 15:07

The US Fed meeting on Wednesday was one of the key financial market events of the week. The Fed’s December rate hike was followed up with decidedly more dovish rhetoric at the March meeting and investors were anxious over any modification in the wording to signal a change in policy. Fed Chair Janet Yellen played it safe. She removed the...

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The new equity market barometer?

25.04.2016 08:49

Movements in the oil price is increasingly dictating equity market direction. This strong  correlation between the  daily directional moves in equity markets to those of oil prices has been in place since last year  November and continues to be until today. This week started on a poor footing as the world’s  largest oil suppliers couldn’t reach a compromise over production...

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A synchronised bounce?

18.04.2016 07:23

Merely two months ago, many market participants were predicting a global recession as equity  markets tumbled  and investors shied away from risky assets. Goldman Sachs reported that the oil price could plummet  to as low as  $20 a barrel. But in a very short space of time, markets have turned around and reached new highs  for the year. The recovery...

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Pay back the Rand…

04.04.2016 10:28

The Federal Reserve Chair Janet Yellen’s address to the Economic Club of New York on Tuesday was rather dovish, stating that the U.S. Central Bank should proceed with caution in adjusting monetary policy. In the December meeting the FOMC members saw rates between 1.25% and 1.5% at the end of 2016, and at 3.5% in the longer term. In the...

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