International News (Issue 457) – July 14th, 2017

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International News (Issue 457) – July 14th, 2017

The Federal Reserve Chairwoman’s commentary around both the balance sheet unwind intended by the Fed, and indeed the outlook for inflation, seemed to garner most attention from markets this week.

As I detailed in the previous section, I was surprised at the markets optimistic reaction to Janet Yellen’s mildly dovish inflationary outlook particularly given that this was currently priced in by fixed income markets.

That the Fed balance sheet would not be used as an ‘active tool’ for policy was also interesting, and points to a sustained withdrawal of liquidity from global investment markets.

The Bank of England and European Central Bank look to be treading a similar path to the Fed, albeit several months behind.

Rising inflation in the United Kingdom is causing significant disagreement amongst BOE board members as to the timing for not only a withdrawal of its current bond buying program, but also as to plans for the first rate-hike.

Thursday Closing Values

Index Change %
U.S. S&P 500  2448  +38  +1.6
London’s FTSE  7413  +76  +1.0
Japan’s Nikkei  20099  +105  +0.5
Hang Seng  26346  +881  +3.5
China’s Shanghai  3218  +6 +0.2

 

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By | 2017-10-16T11:52:47+11:00 July 14th, 2017|International News|0 Comments

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As the Chief Investment Officer (CIO) for Prime Financial Group, I work closely with the national advisory team, high net worth individuals, family groups and Prime’s broader accounting network to provide considered and pro-active investment advice.