In the third quarter, the markets around the world were mixed. This was because of the vast amount of news and data that came through during the quarter. In the United States, the DOW, Nasdaq, and the S&P gained by 9.4%, 9%, and 7.5% respectively. In Europe, the DAX, and the Stoxx gained by 1%, and 1% while the FTSE dropped by minus 1%. In Asia, the Nikkei and Shanghai rose by 8% and 0.5% respectively while the Shanghai Composite index fell by more than 1%. This article will look at the most important things that will be focused on this quarter.
US Midterm Elections
On November, the US citizens will go to an election that will determine the composition of the senate and the house. This will be an important election because if the republicans lose the majority, it will mean trouble for the Trump administration. This is because democrats will move to impeach Donald Trump, especially if Robert Mueller releases a critical report. Even if he doesn’t, they will still move to impeach him because most of Democratic donors have requested so. They will also move to derail his economic agenda.
Brexit
This will be the final quarter before the UK fully divorces with the European Union. This means that the next few months will be very critical for the future of the country. In the last quarter, major developments happened. First, Theresa May released her document highlighting the future of the UK. This document was known as the Chequers plan. It received critical reviews from the conservatives while the left said they won’t vote for it. This quarter, traders will pay close attention to how the negotiations turn out.
Yield Curve
In the past quarter, the yield curve continued to narrow. It moved to the lowest level since 2014. This was a major news to traders who follow the movement on treasuries. In this quarter, as traders continue to pay close attention to the Fed, inflation data, and interest rates, there is a likelihood that the yield curve will move closer to inversion. If it does this, it will be a big news to traders.
Emerging Markets
The past quarter saw major movements in the emerging markets. This happened after the Turkish currency declined sharply after a conflict in the US. There are indications that the country will release the American preacher this quarter. While the country has more fundamental problems, this will be a major positive news for the currency. Still, as the dollar continues to strengthen, traders will pay close attention to the other emerging markets.
Crude Oil
In the past quarter, the price of crude oil continued to rise. This happened after OPEC announced that it will continue to tighten the supply, defying the United States. In this quarter, the OPEC members will meet in Vienna, where they will decide on the future of supply. In addition, in the quarter, the Iranian oil will be in focus as the US moves to ramp up supplies. Traders will pay close attention to the price of crude.
Trade
In the past quarter, trade was a major news for traders. Just last week, the US and China imposed tariffs worth more than $260 billion. Traders will wait to see what develops in the relationship between the two countries. Over the weekend, the Trump administration sent signals that a new NAFTA deal was likely to be unveiled. Another deal traders will focus on is a deal between US and Japan.
In the third quarter, the markets around the world were mixed. This was because of the vast amount of news and data that came through during the quarter. In the United States, the DOW, Nasdaq, and the S&P gained by 9.4%, 9%, and 7.5% respectively. In Europe, the DAX, and the Stoxx gained by 1%, and 1% while the FTSE dropped by minus 1%. In Asia, the Nikkei and Shanghai rose by 8% and 0.5% respectively while the Shanghai Composite index fell by more than 1%. This article will look at the most important things that will be focused on this quarter.
US Midterm Elections
On November, the US citizens will go to an election that will determine the composition of the senate and the house. This will be an important election because if the republicans lose the majority, it will mean trouble for the Trump administration. This is because democrats will move to impeach Donald Trump, especially if Robert Mueller releases a critical report. Even if he doesn’t, they will still move to impeach him because most of Democratic donors have requested so. They will also move to derail his economic agenda.
Brexit
This will be the final quarter before the UK fully divorces with the European Union. This means that the next few months will be very critical for the future of the country. In the last quarter, major developments happened. First, Theresa May released her document highlighting the future of the UK. This document was known as the Chequers plan. It received critical reviews from the conservatives while the left said they won’t vote for it. This quarter, traders will pay close attention to how the negotiations turn out.
Yield Curve
In the past quarter, the yield curve continued to narrow. It moved to the lowest level since 2014. This was a major news to traders who follow the movement on treasuries. In this quarter, as traders continue to pay close attention to the Fed, inflation data, and interest rates, there is a likelihood that the yield curve will move closer to inversion. If it does this, it will be a big news to traders.
Emerging Markets
The past quarter saw major movements in the emerging markets. This happened after the Turkish currency declined sharply after a conflict in the US. There are indications that the country will release the American preacher this quarter. While the country has more fundamental problems, this will be a major positive news for the currency. Still, as the dollar continues to strengthen, traders will pay close attention to the other emerging markets.
Crude Oil
In the past quarter, the price of crude oil continued to rise. This happened after OPEC announced that it will continue to tighten the supply, defying the United States. In this quarter, the OPEC members will meet in Vienna, where they will decide on the future of supply. In addition, in the quarter, the Iranian oil will be in focus as the US moves to ramp up supplies. Traders will pay close attention to the price of crude.
Trade
In the past quarter, trade was a major news for traders. Just last week, the US and China imposed tariffs worth more than $260 billion. Traders will wait to see what develops in the relationship between the two countries. Over the weekend, the Trump administration sent signals that a new NAFTA deal was likely to be unveiled. Another deal traders will focus on is a deal between US and Japan.
The post What to Watch Out for in the Fourth Quarter appeared first on Forex.Info.
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