<Click on chart for larger image> The Washington Post – Larry Summers: Here’s yet another reason the Fed shouldn’t raise rates In recent writings, I have laid out the strategic case against the Federal Reserve tightening this week. There is a compelling tactical case as well. Monetary policy should seek to avoid major surprises. Right… Continue reading 2 Days Until The FOMC Meeting
Bloomberg.com – Fed Rate-Move Doubts Boost Emerging Stocks as Currencies Advance Banks lead gains in Brazil; Ibovespa ends three-day decline Chinese shares fall after factory output trails forecasts Emerging-market stocks and currencies rose as traders bet the Federal Reserve will hold off on raising U.S. interest rates this week, shoring up demand for riskier assets,… Continue reading Everyone Has An Opinion On The Fed
The Financial Times – Federal Reserve sharpens tools for lift-off Central bank seeks to ensure short-term market interest rates obediently follow higher target level. Achieving this is going to be a daunting feat for a central bank facing a financial sector that has changed radically following the crisis. Markets specialists at the New York Fed… Continue reading How Will The Fed Raise Rates?
Thomson Reuters – S&P 500 Earnings Today The Q3 2015 blended Earnings growth estimate is -3.6%. Excluding the energy sector, the earnings growth estimate increases to 3.8%. In the S&P 500, there have been 97 negative EPS preannouncements issued by corporations for Q3 2015 compared to 27 positive EPS preannouncements. By dividing 97 by 27… Continue reading Looking Ahead To Q3 Earnings
<Click on chart for larger image> Bloomberg Business – U.S. Inflation Expectations Are Lowest in Years, Fed Survey Shows Consumer expectations for inflation three years ahead fell last month to the lowest level in records going back to June 2013, according to a Federal Reserve Bank of New York survey released Monday. The median respondent… Continue reading Inflation Expectations
The Wall Street Journal – Oil Patch Braces for Financial Reckoning Smaller producers are girding for cuts to credit lines, as crude prices show little sign of rebounding U.S. energy companies have defied financial gravity for more than a year, borrowing and spending billions of dollars to pump oil, even as crude prices plummeted. Until… Continue reading Energy Credit
<Click on chart for larger image> Bloomberg.com – VIX at 24 Leaves U.S. Stocks With No Road Map for Fed Tightening No rate hike has started within one month of correction VIX averaged 16.9 when last three tighten cycles began Normally, in the stock market, calm prevails before the Federal Reserve moves on interest rates.… Continue reading Volatility Remains Elevated
<Click on chart for larger image> Bloomberg.com – The U.S. Dollar Is Gaining Like It’s the 1980s — For Better or Worse Currency heading for biggest two-year gain since 1984 World lost forum for effective policy coordination: Gyohten The dollar is in the midst of its strongest rally since 1984 and — unlike then — there… Continue reading The Dollar Index
The Financial Times – The crises that threaten to unravel the EU Refugee issue has overshadowed the euro, but the single currency’s problems have not gone away The refugee and euro crises bear on whether Britain will vote to stay in the EU, when it holds a referendum in 2016 or 2017. Until recently, the… Continue reading Refugee Crisis
The Wall Street Journal – Worries Rise Over Global Trade Slump A sharp drop in global trade growth this year is underscoring a disturbing legacy of the financial crisis: Exports and imports of goods are lagging far behind the pace during past expansions, threatening future productivity and living standards. For the third year in a… Continue reading Global Trade
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Barron’s – Amey Stone: Fed Rate Hike Is Too Close to Call Will they or won’t they? Opinions on what the FOMC will or will not do point all over the place. In an ideal world, there would be a pretty clear consensus ahead of a Federal Open Market Committee meeting about what policymakers were… Continue reading 3 Days Until The Fed Meeting