CNBC Comment: US debt limit debate is the real decider September 30, 2013 SINCE the Fed surprised us by deciding not to start tapering its stimulus programme, we’re back to listening to what Fed members happen to say on the sidelines of events and finding momentum elsewhere. The two big themes to focus on next are the European Central Bank’s (ECB) rate setting meeting tomorrow, and the impact [...]
Daily FX: Analyst picks September 30, 2013 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Looking short dollar-yen, long Kiwi-dollar Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few weeks I remain long on Kiwi-dollar from $0.8165, though I will cut the trade indiscriminately should US and Italian political issues boil over. The pair suffered mightily in [...]
Markets muted after German poll September 23, 2013 But the probable outcome of a CDU/CSU grand coalition with the SPD may bring a long-term shift GERMANY has voted, and despite Angela Merkel’s triumphant showing, a “grand coalition” between her Christian Democrat alliance (CDU/CSU) and the Social Democratic Party (SPD) has emerged as the most likely outcome. Euro-dollar initially rose to $1.3546 in early [...]
CNBC Comment: Why active funds struggle to outperform September 23, 2013 IT’S ONLY 91 days until Christmas and, for the movers and shakers in the fund management industry, we’re close to “squeaky bum time”. This is when we begin to see who has delivered the goods, and who has to start lining up their excuses for another year of underperformance. Yet unlike in the Premiership title [...]
Daily FX: Analyst picks September 23, 2013 QUANTITATIVE STRATEGIST DAVID RODRIGUEZ My pick: Long dollar-yen Expertise: System trading Average time frame of trades: 2 to 10 weeks The dollar fell sharply against the Japanese yen and broader counterparts on the Federal Open Market Committee’s (FOMC) “no taper” call. But the fact that dollar-yen quickly recovered is telling. The pair remains in a [...]
Summers exit trumps fears of taper September 16, 2013 But uncertainty surrounding the nomination of the new Fed chair will mean volatility for stocks in the future LARRY Summers, former US Treasury secretary, is out of the race to replace Ben Bernanke as Fed chair. In reaction to the news, the MSCI All-Country World Index rose yesterday by 1.1 per cent to its highest [...]
CNBC Comment: Guidance disbelief may force Bank action September 16, 2013 IT’S ANOTHER big week for UK economy watchers, as questions remain about the quality and sustainability of the current rebound. After a miserable 2012, more optimistic economic forecasts should be warmly received. But there’s still doubt about whether a recovery that’s been helped by housing and a consumer upturn can lead to strong investment-led growth. [...]
Daily FX: Analyst picks September 16, 2013 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Long Kiwi-dollar, long Kiwi-yen, looking to exit long dollar-yen Expertise: Fundamental and technical analysis Average time frame of trades: A few hours to a few weeks Dollar-yen has chopped sideways and opened the week lower on news that Larry Summers would not become the next Fed chairman. Weakness related [...]
Political risks rising in the Eurozone September 9, 2013 The rise of populist parties across the bloc and high unemployment may lead to more market volatility, writes Liam Ward-Proud RECOVERY in the Eurozone is certainly underway. The region ended its 18-month recession in the second quarter, posting growth of 0.3 per cent. European equities, despite a few blips, have also performed strongly, with the [...]
CNBC Comment: Banks face an IT Wonga challenge September 9, 2013 The market may not be factoring in the cost of new technologies THERE is a shadow looming over the world’s retail banks, which many believe the market is not factoring in. For much of the past few years, the focus has been on the fallout from the higher-stakes poker games played before the financial crisis. [...]