International News (Issue 424) – 4 November 2016
The US election clearly remains the one and only focus for global markets next week, and as I said above, sadly I don’t expect the unveiling of a new President to be a good thing for markets either way.
It seems likely that whatever the result, divisions will increase not decrease.
In the US this week the Federal Reserve left interest rates on hold, but again pointed toward a December hike.
Manufacturing data continued to moderately improve, and new jobs growth also continued albeit at a milder pace than in recent months.
Chinese economic data also continued its steady improvement.
In the UK this week the Bank of England took a step-backward by removing its bias towards monetary easing, effectively acknowledging the stimulus provided in recent months by the post-BREXIT collapse in the British Pound.
Also on BREXIT, British Prime Minister Therese May declared she would push forward with plans to trigger Britain’s exit from the European Union before March 2017 in spite of a High Court ruling that said the PM could not trigger the formal exit process without a parliamentary vote.
The whole situation is a farce sadly, and the ultimate impact on Britain’s and Europe’s economy from the BREXIT vote is still entirely unresolved in my opinion – in other words it will get worse.
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