Daily Commentary 01/02/2016

The Bank of Japan surprised markets by moving to negative interest rates! This was the sugar that addicted share markets needed. Equities surged, globally, with the DOW managing to paint a sugar coat on an otherwise shocking start to the year. This Monetary expansionism will have an immediate impact but long term costs. Who pays…

Daily Commentary 29/01/2016

The Fed left rates unchanged, as expected, but the commentary was dovish. Global growth is under question and the U.S. will not be immune to the economic slowdown. This triggered a selloff in the Dollar, with the EUR jumping to 1.0950, while the GBP moved to 1.4370. This was despite weak economic confidence reports issued…

Daily Commentary 28/01/2016

Equities took a breather overnight ahead of the FOMC meeting. The Fed has resumed its ‘dovish’ stance, after the first interest rate rise since the GFC, leaving rates unchanged and continued monetary expansionism. Oil held the lofty levels of $32/barrel, but remains an extreme target, as does the commodity prices. The commodity collapse has been…

Daily Commentary 27/01/2016

Oil prices surged past $32/barrel, bolstering risk appetite in markets across Europe and the U.S., despite another equity sell off in China. Chinese market are being hit hard and it appears the credit bubble is likely to cause big corrections that may lead to a serious flow on through global markets. European equities are booking…

Daily Commentary 26/01/2016

Equities were flat overnight, with no major economic data releases, as oil settled above $30/barrel. The Dallas Fed Manufacturing Index contracted, in line with most manufacturing in the U.S., confirming the lack of global economic confidence! There has been little to celebrate, with confidence collapsing, while ‘risk off’ moves flood market. The Dollar remained flat,…

Daily Commentary 25/01/2016

Market recovery continued, with Oil surging to $32/barrel, while Equities continued to claw back part of the recent losses. Share markets have benefitted the continued QE from the EU, Japan and China. The reversal in the U.S., with the Feds first rate rise goes against the flow, will be halted and perhaps reversed. Economic data…

Daily Commentary 22/01/2016

Equity markets rebounded, with risk on/risk off trades showing extreme swings in volatility, reflecting the worst start to a financial year. The ECB left rates unchanged, but Draghi hinted further QE may be required for challenged markets in March. This has the immediate impact of boosting share markets and hitting the EUR. The single currency…