Monday, July 20, 2015

The Fed message : "To be forewarned is to be forearmed"

St. Louis Fed President J Bullard told Fox Business Network that there was a better than 50 percent chance that the U.S. central bank will raise interest rates in September.That had the dollar strengthen. That had the market hasten up expectations of a rate hike. That also  keeps the anticipations of a British hike ticking. 

If the dollar strengthens against the yen, then Nikkei should fall. So also other Asian stock markets in tandem. Buying oil becomes a shade costlier for all. For the GCC countries selling oil became a little more difficult as it has become expensive, given that oil is invoiced in dollars.

With the calm banks in Greece, the euro must be looking for a breather and a climb. If the euro climbs, the exports from Europe may hold back a stock market runaway.

Chinese authorities continue their macho state vigil and intervention in markets. The more you liberalize, the more you control. 

Indian politicians , as usual,  are  determined to talk loose and work less. So reforms are stalled and FIIs may well do to exit. Its banks NPA remains a cause for worry. 


This blog offers no investment advice. Views expressed are without any  risk or responsibility

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