Increasing signs the risk rally is stalling
Mixed signals from Japan’s MOF
Still a troubling trend in US economic data
GBP gets thumped by the BOE
Key data and events to watch next week
Following last week’s preliminary signals that risk assets may be stalling, this past week saw stock markets lose ground, key commodities reverse gains, and the USD bounce after testing key support levels. To be sure volatility remained high during the week, with new risk highs being made, but weekly closing indications increasingly suggest a peak in key risk markets has been seen. There were a number of data disappointments (see below) that worked to soften risk appetites, but attempts to extend the rally ultimately failed out of exhaustion. This was most evident following the FOMC’s largely as expected statement, which noted that economic activity ‘picked up’ and that the Fed would maintain extremely low rate levels for an extended period. Those comments should have and did lead to a rally in risky assets, but, importantly, those gains could not be sustained and most finished down on the day. Full text »
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