Stock market indices in 2015 ended in the positive territory in most of the countries in Europe as well as in Japan, while in the US the S&P500 lost 0.73%, the Dow Jones -2.123% and the NASDAQ gained 5.73% – all considering local currencies. If you convert the performances in USD some like the DAX […]
The focus of the financial markets will be on the communication of the FOMC this coming Wednesday after a week of negative performance of risky assets that seemed to be related to investors doing the final positioning for the first interest rate hike since 2006. Equities on both sides of the Atlantic tumbled in the […]
Weekly Coffee Perspective The marketplace has priced a FED lift off at the end of the FOMC meeting on December 16th, with the bets being bolder after the strong job creation number in November and the higher revision for the October data. In fact some analysts believe that the dollar has already accounted for two […]
WILL FLAT- PRICE COVERAGE DIMINISH MORE? The Yuan will be added to the IMF Special Drawing Rights basket on October 1st 2016 after the board of the entity approval today. It is an indication that further reforms on the Chinese currency policy will happen, with many economists foreseen more devaluations of the renminbi. For commodities […]
NY RALLIES BUT BASIS REMAIN STRONG Equities were able to recover in the past five sessions partially driven by the FOMC’s minutes suggesting that interest rate increase will be gradual and on words from Mario Draghi that said the ECB will do what it must to raise inflation as quick as possible. The dollar index […]
NON-COMMERCIALS, COMMERCIALS AND INDEXES Risky assets fell in the past five days on a continuation of dollar strength with the markets now betting there is a 90% chance of a December FED lift-off. Japan entering the 5th recession since 2008, oil sliding close to US$ 40.00 a barrel and the belief that the Euro might […]
BLAME THE DOLLAR AGAIN The US non-farm payroll data released on Friday beat all expectations with the creation of 271k posts during the month of October, taking the unemployment rate to 5%. Growth wage, smaller part-time workers and smaller under-unemployment figures have set the stage for the FOMC to increase interest rates on the December […]
RAINS HELP THE ARABICA BUT NOT THE ROBUSTA BEANS World stocks in October had the best monthly performance since 2011 led by 12.32% gains of the DAX, +9.75 of the Nikkei and the three major US indices that rose between 8% and 9%. Easing policy from the People’s Bank of China and signals from the […]
Weather all over again One more FED official stated that the interest rate increase until the year end is expected, mentioning also that it is not a commitment and dependable on the global economy – more of the same, make the lift-off still unknown. Many economists believe a 2015 hike is possible, but a good […]
The raw commodity sector is still in an overall slump, which has helped to produce worldwide deflationary worries. However, just the past few trading sessions there are “green shoots” showing in a few markets that could be very early clues the raw commodity sector “bust” is coming to an end. Sugar, coffee and silver prices […]
