IG market strategist talks rubbish in TODAY newspaper report.
For the United States, it is unlikely they will turn around and re-introduce easing measures, despite stronger-than-expected payroll numbers in July.
http://m.todayonline.com/business/another-round-monetary-stimuli
Innocent typo only that 'despite' should instead read 'due to the'... or rather Freudian slip revealing the strategist eagerness for more monetary stimulus which will only result in more money accumulating in the pockets of the rich???!!!
Doesn't "stronger-than-expected payroll numbers" mean that more people are effectively employed in paying jobs?: The why print more fiat money without proper cause (aka monetary stimulus aka "easing measures"/ QE)? That is why Bernard Aw's sentence makes zero economic logic/ sense and which perhaps reflects these so called "strategist" quality of financial advice is probably questionable/ fishy.
It is a shame too that the TODAY newspapers financial editors have actually allowed this kind of half-past-six report to print and reveal their financial illiteracy as well.
For the United States, it is unlikely they will turn around and re-introduce easing measures, despite stronger-than-expected payroll numbers in July.
http://m.todayonline.com/business/another-round-monetary-stimuli
Innocent typo only that 'despite' should instead read 'due to the'... or rather Freudian slip revealing the strategist eagerness for more monetary stimulus which will only result in more money accumulating in the pockets of the rich???!!!
Doesn't "stronger-than-expected payroll numbers" mean that more people are effectively employed in paying jobs?: The why print more fiat money without proper cause (aka monetary stimulus aka "easing measures"/ QE)? That is why Bernard Aw's sentence makes zero economic logic/ sense and which perhaps reflects these so called "strategist" quality of financial advice is probably questionable/ fishy.
It is a shame too that the TODAY newspapers financial editors have actually allowed this kind of half-past-six report to print and reveal their financial illiteracy as well.
Another round of monetary stimuli?
BYBERNARD AW
PUBLISHED: 4:00 AM, AUGUST 8, 2016
After the Brexit vote, hopes of more stimuli from global central banks fuelled equity demand in July. Although we finally saw some action from the Bank of Japan (BoJ) and the Bank of England (BoE) last week, it was not a coordinated response that we expect.
Investors were disappointed with the BoJ decision, although they were fairly encouraged with the fiscal stimulus package announced by Prime Minister Shinzo Abe. They were more impressed with the BoE, who acted aggressively by announcing an unexpectedly large and diverse package.
However, what is important is their actions have invigorated discussion about what other central banks may do next to manage possible headwinds in the months ahead. For the United States, it is unlikely they will turn around and re-introduce easing measures, despite stronger-than-expected payroll numbers in July.
Instead, what is more likely is another delay in raising interest rates. At the moment, futures markets are pricing in an 18 per cent chance of a rate hike in September, and a 37 per cent chance in December. The fact that the probabilities have been at such low levels reflected the scepticism of investors towards any rate tightening this year. The November US presidential election is also an event the Fed may consider to avoid rocking the boat. In my view, we need to see a series of strong economic data from the US to convince the markets that the Fed may act this year.
The financial markets will shift their attention to China’s economic performance this week, where an onslaught of Chinese data awaits. We can expect industrial production, retail sales, trade, and inflation to be released during the week, while credit and money-supply data may also come out. The overall impression from various PMI surveys was one of continued weakness in the manufacturing sector, as strength in services activity appears to be waning. A round of weak numbers would force the government to consider more stimulus measures.
In Asia, we will be seeing a number of central banks meeting, including in India, Korea, the Philippines and New Zealand, where we will get a sense of where the global economy is heading. The BoJ will release the minutes from the July meeting. Meanwhile, Singapore, Malaysia and Hong Kong will report GDP results.
Investors will also keep an eye out for more earnings results from Singaporean firms, including DBS Group and Singtel.
Bernard Aw is a market strategist at IG. You may wish to follow Bernard on Twitter at @BernardAw_IG
http://m.todayonline.com/business/another-round-monetary-stimuli
