ETX Capital Daily Market Bite, 15th November 2013: Yellen Inspired Market Rally Starts To Fade
November 15, 2013 9:32 am
November 15th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist.
The Yellen inspired pro-accommodative monetary policies rally petering out Friday despite new record high close in the US for the S&P500 overnight and upbeat Asian market session too. There’s a sober realisation that the euro zone’s growth prospects are not as bright as previously thought after Thursday’s GDP figures from the region revealed that power houses Germany and France stuttered.
So, Yellen yesterday told US Senate that the Fed’s QE programme had a meaningful effect on economic growth but the US economy’s performance has fallen short of expectations. Notably, Yellen believes that there is not a stock market bubble in the US due to all the steroid like liquidity pumped through the system thanks to QE — stocks loved her comments, rallying hard on Wall Street.
Here in Europe, although Yellen’s remarks provide support to equity markets with banking stocks doing better than others sectors. Corporate news is rather thin on the ground with earnings season close to an end so the immediate attention is on today’s macro menu with harmonized inflation from the euro zone being the show stealer in the region. Last week, the ECB cut rates on the threat of deflation so today’s harmonized inflation report will be of particular interest. Later in the US, we have the Empire State manufacturing report followed by industrial output.
November 15th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist.
The Yellen inspired pro-accommodative monetary policies rally petering out Friday despite new record high close in the US for the S&P500 overnight and upbeat Asian market session too. There’s a sober realisation that the euro zone’s growth prospects are not as bright as previously thought after Thursday’s GDP figures from the region revealed that power houses Germany and France stuttered.
So, Yellen yesterday told US Senate that the Fed’s QE programme had a meaningful effect on economic growth but the US economy’s performance has fallen short of expectations. Notably, Yellen believes that there is not a stock market bubble in the US due to all the steroid like liquidity pumped through the system thanks to QE — stocks loved her comments, rallying hard on Wall Street.
Here in Europe, although Yellen’s remarks provide support to equity markets with banking stocks doing better than others sectors. Corporate news is rather thin on the ground with earnings season close to an end so the immediate attention is on today’s macro menu with harmonized inflation from the euro zone being the show stealer in the region. Last week, the ECB cut rates on the threat of deflation so today’s harmonized inflation report will be of particular interest. Later in the US, we have the Empire State manufacturing report followed by industrial output.
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