Markets Update Friday 30/08/2019 – China acts as the grown-up

Frankfurt – 30/08/2019 China acts as the grown-up The Chinese have decided to get out of the childish tit-for-tat-game Trumps. The markets like that. On Thursday, the Chinese Commerce Ministry said that China would not react immediately to the new tariff increases by the Trump administration, which are to come into effect on September 1. Instead, a ministry spokesman pointed …

Markets Update Thursday 29/08/2019 – Sterling beaten down after Johnson speech

Frankfurt – 29/08/2019 Sterling beaten down after Johnson speech The Brexit issue is not letting investors go. British Prime Minister Boris Johnson is cutting Parliament’s time in deliberation on the Brexit dispute before EU withdrawal. Johnson announced that the usual two-week break from mid-September will be extended to around four weeks until 14 October. The Queen officially confirmed the extension …

Markets Update Wednesday 28/08/2019 – Investors stay at the sidelines

Investors stay at the sidelines The global stock markets continue to look at the various political conflicts, like the news that came out of Italy and from Brexit. Furthermore, the German GfK consumer climate index is expected later on today. Finally, in the evening (from 20:00 CET) the Fed’s economic outlook for the USA, the Beige Book, is awaited.  The …

Markets Update Monday 26/08/2019 – Trade war spiral of retaliation

Frankfurt – 26/08/2019 Trade war spiral of retaliation The trade dispute between the USA and China becomes a trade war. The US government will raise all existing punitive tariffs on imports from China by five percentage points each, as US President Donald Trump announced on Twitter. His announcement came only hours after the Chinese government announced new punitive tariffs on …

Markets Update Friday 23/08/2019 – Waiting for Powell again

Waiting for Powell again Today’s agenda includes a speech by Fed chief Jerome Powell. Investors are hoping that this will provide some indication of the Fed’s interest rate policy. Expectations for the central bank meeting in Jackson Hole are high. The potential for disappointment is correspondingly high. If US bonds with shorter maturities offer higher yields than those with longer …

Markets Update Thursday 22/08/2019 – No clear signals from the Fed

Frankfurt – 22/08/2019 No clear signals from the Fed Despite almost daily demands by US President Donald Trump for a drastic cut in the key interest rate, the central bank has shown itself unaffected. The decision-making body agreed that the central bank needed “flexibility” in determining the level of the key interest rate, according to the minutes of the interest …

Markets Update Wednesday 21/08/2019 – Spotlight on the Fed once again

Frankfurt – 21/08/2019 Spotlight on the Fed once again Wednesday will be dominated by the Fed once again. The Fed will be releasing the minutes of its most recent interest rate meeting this evening. The German Landesbank Hessen-Thüringen (Helaba) is warning the dpa (German Press Agency) that the transcript may contain indications of the Fed’s future monetary policy. However, it …

Markets Update Tuesday 20/08/2019 – Markets remain stable for now

Frankfurt – 20/08/2019 Markets remain stable for now The hope of relaxation in the trade dispute with China continued to drive Wall Street on Monday. Last week, the panic that had prevailed on the U.S. stock exchange in the meantime had already subsided by the end of the week. Economic worries had previously caused investors to flee stocks in a …