AWM Global Update – Friday 12th September

Stocks and Commodities slipped yesterday as the anxiety over Fed policy grew.
In the US markets anxiety is rising ahead of the Federal Reserve’s policy (The Central Bank in the US) meeting next week. The concern is that in the announcement next week the fed will change its language from saying there is “considerable time” to something a bit more timetabled. This could indicate that rates in the largest economy in the world could rise as early as January 2015. The extended period of Quantitative Easing ends soon, this with the low rates has been supporting equities for awhile.
US jobless claims also unexpectedly rose but the improving labour market trend continues.
The FTSE 100 fell by 0.45% yesterday with uncertainty over Scotland weighed on the risk appetite in London. However the latest polls showed Scottish voters were leaning towards staying in the UK.
Brent crude fell almost a $1 to $97.07 a barrel near its cheapest since April 2013, as the market showed little concern over President Obama’s pledge to attack and destroy ISIS. The fall is more likely to be caused by the International Energy Agency’s (IEA) announcement that the world’s demand for oil slowed at a “remarkable” pace during the last quarter. This led to the IEA to revise lower its demand forecasts for 2014 and 2015.
The Reserve Bank of India said that “quick decision-making, reforms, improvement in the business climate and fast-tracking of projects were expected to boost investment this financial year” indicating that there is still more growth to be found in this area. However, it said the lead indicators pointed to continuing sluggishness in domestic economic activity in the June quarter, adding the likelihood of a deficient monsoon could affect agricultural production.
Relations between Russia and the west reared their head again. With the rouble (Russian Currency) falling to a record low and Moscow’s MICES equity index declining more than 1% as the EU looked to impose more sanctions.
Later today we are looking out for US Retail sales as an indication of Consumer confidence within the US as well as future Profits for firms

 


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