-
Published on 30 Jun 2017
30 June 2017:
With it being the end of the quarter Martin Essex and Jeremy Naylor look across the performance of the markets.
Martin
explains the momentum behind the euro after its strongest quarter in
six years. Martin looks at some of the reasons behind this including
Mario Draghi’s rhetoric this week, hinting that a reduction in stimulus
could be signalled as early as September. Additionally, as Martin says,
the economy looks good and confidence is high.
Another question going into Q3 is whether rates may be tightened elsewhere?
At
a central bankers conference this week the Bank of England Governor
Mark Carney conceded that a UK rate hike could be needed and Stephen
Poloz suggested Canada could tighten rates as soon as July.
But what
about the US? As we go into a week when there’s a US holiday on
Tuesday, but also critical releases with the minutes of the last Federal
Reserve meeting and Friday’s payrolls, Fed chief Janet Yellen has
suggested that US rates need to be increased further but, with rates
elsewhere also now likely to rise, the Dollar has had its worst quarter
for seven years.
So where does this leave the stock markets after a spot of volatility going into the end of Q2?
Martin says that so long as there is the threat of higher rates this could see further pressure for stock indices.
Finally
the price of oil, Martin explains why there has been this turnaround
and discusses the potential for the price of US Crude.
@CVecchioFX
No comments:
Post a Comment