Jump to content

Money printing signalling higher interest rates


Recommended Posts

Latest news regarding the effects of all the fiscal easing and emergency spending:

Treasury Yields Rise and Bond Markets Wobble as Governments Eye Trillions in Coronavirus Stimulus

Trillions in planned coronavirus stimulus is colliding with billions in new bond purchases from global central banks, and bond markets are starting to feel the impact.
 
So government attempts to stave off an economic catastrophe with their policies are just inflaming and accelerating the next major problem which is rising interest rates. People, companies and governments will then face the next challenge of how to manage their debts when interest rates start rising.
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      19,074
    • Total Posts
      85,868
    • Total Members
      68,273
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    MARCUS12mc
    Joined 05/07/22 09:10
  • Posts

    • Early Morning Call: RBA rate hike erases AUD gains; Sainsbury's trading statement AUD/USD holds Monday’s gains as RBA raises rates by 50bps for a second time. Earnings from Sainsbury's today; also watching all-sessions reaction on TSLA stock following poor sales data and BTC write down.    Jeremy Naylor | Writer, London | Publication date: Tuesday 05 July 2022  APAC outlook Asia-Pacific (APAC) equity markets closed higher, led by the Japan 225 ending the session up 1.03%. The Australia 200 rose by 0.25%. As expected, the Reserve Bank of Australia (RBA) increased its cash rate by 50 basis points (bps) to 1.35%, back to its highest level since May 2019. The Australian dollar lost some ground against the greenback at the announcement, erasing the gains it had made prior to the decision. In China, Caixin services PMI rose to 54.5 in June, marking the first expansion in the sector in months, and the sharpest rise since July 2021. Japan Jibun bank services PMI shows the activity in the sector rose to 54 - its highest level since 2013. Later this morning, S&P Global PMI final data for May will be released in Europe. In Taiwan, the world's largest contract electronics maker, Foxconn reported an overnight jump in sales of 31% in June year-on-year (YoY), and raised its full-year business outlook, citing strong sales of smartphones and servers, despite rising inflation and slowing demand concerns. Indices European indices opened higher, after a positive session yesterday for the FTSE 100 and CAC 40. Germany’s DAX 40 fell 0.31% after the country recorded its first seasonally-adjusted trade deficit in more than 30 years. In the US, equity markets will reopen after Independence Day. At 3pm, factory orders are expected to rise by 0.5% on May month-on-month (MoM). Equities Sainsbury's trading statement shows that first quarter (Q1) like-for-like sales excluding fuel were down 4% in last 16 weeks. Clothing sales fell 5% in the last 11 weeks, after a drop of 30% in the first five weeks. There are similar patterns at Argos: down 7% in the last 11 weeks and -19% in the first five weeks of the quarter. Also watch out for Tesla at the open, at 9am on the IG all-sessions stock market. The electric carmaker reported on Saturday that it delivered 254,000 vehicles in the second quarter, its first back-to-back quarterly drop in more than two years. This was well below the 350,000 estimated by analysts. Tesla is also facing a $440 million write-downs on its bitcoin holdings after a slump in the digital currency's value. The carmaker bought $1.5 billion worth of bitcoin early last year in a radical move that made it the biggest company to move part of its cash reserves into cryptocurrency. Tesla reports earnings on Wednesday 20 July. Commodities On the commodity front, European gas supply is under added pressure. Today Norwegian offshore workers begin a strike, asking for wage hikes to compensate for rising inflation. Metal prices remain weak. Copper remains below $8,000. Zinc remains near its recent lows but is up for a second straight day, a first in five weeks. After a longer weekend than usual in the US, we'll see later on if Chicago Wheat and Corn prices continue to drop. Last week was a second straight week of heavy declines for grain prices in the US, on rising hopes that end-of-summer harvests would be plentiful, not only in the US, but in Europe and Australia.     This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
    • The procession of interest rate hikes continued overnight as the RBA raised rates to 1.35% as expected, the highest level since May 2019. Asian markets continued their recovery after reports that President Biden was looking to roll back some China sanctions in a bid to both help tame inflation and also rebuild US-China ties. Janet Yellen and the Chinese vice premier also held talks, which may indicate some further easing of tensions may occur. Stock markets finished in positive fashion in Asia, with gains for the Nikkei, ASX 200 and CSI 300, and futures in both Europe and the US point to a higher open.  
    • For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK. Today’s coverage:   Indices: US markets back after long weekend SPX & INDU highest in a week on 24hr mkts. UKX to open up for 3rd day while DAX & CAC mixed. APAC mostly higher FX: AUDUSD holds Monday’s gains as RBA raises rates by 50bps for 2nd time in a row.  USDCNH after Caixin services PMI data in steepest rise since July 2021.   Equities: Earnings – SBRY. Watching all-sessions reaction on TSLA stk on poor sales data and BTC write down   Commods: Oil holding the gains over the last two days. Gold barely moved. Coffee Robusta, NY Sugar & wheat all under pressure as good growing weather boosts supply   https://community.ig.com/igtv/
×
×
  • Create New...