“Those comments haven’t really shifted market pricing, but if the boss was to signal it too, markets would likely listen”. The U.S. dollar index eased 0.16% in midmorning in Europe.
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A USA rate increase last December – the first in nearly a decade – unleashed a selloff in global financial markets, sending emerging market currencies and debt falling sharply. She said that aside from less risk-taking ahead of the speech at the Jackson Hole meeting, momentum and trading volumes are fading in the equities market, with sentiments more fragile in the backdrop of slumping commodities, weak demand and overcapacity in emerging economies. Still, prediction markets only ascribing a one-in-five chance of a September move and don’t anticipate an increase to the Federal Funds rate till 2017. The US currency was flat at 100.560 yen, having risen a modest 0.3% so far this week. Japanese inflation data on Friday showed a fifth straight month of consumer-price declines, underscoring the challenges facing the Bank of Japan as it uses unprecedented monetary stimulus to try and revive the economy and inflation. The Nasdaq composite rose one point, or less than 0.1 percent, to 5,219. It’s a talking shop and we should take the goods on offer with a healthy dose of salt. The services counter gained 1.32 percent while the industrial counter was also slightly up.
KEEPING SCORE: Japan’s Nikkei 225 was down 0.7 percent at 16,448.
The dollar is set to jump or fall depending on what she will say about interest rates. It’s hard to predict.
“If (Yellen) does make more hawkish comments the market could be chaotic in the short term”, he added.
US stocks were modestly lower on Thursday, weighed down by a drop in healthcare and consumer companies.
The broader NSE Nifty was down 0.06 percent at 8,585.48 and 0.94 percent for the week, heading for its biggest weekly loss since the week ended on June 24.
Crude futures also rebounded from a selloff in the previous session on support from players buying on dips and looking for a bottom on speculation that next month’s informal meeting between the Organization of the Petroleum Exporting Countries and other major producers could result in output curbs.
Oil was hammered Wednesday on data showing a surprise jump in United States stockpiles last week, with West Texas Intermediate (WTI) shedding 2.8 percent and Brent down 1.8 percent. The yield on the 10-year Treasury note held steady at 1.56 percent.
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The losses come after a seven-day oil rally that saw it enter a bull market – a 20 percent rise from recent lows – on hopes for an output limit deal at a meeting next month between key producers including the OPEC cartel and Russian Federation.
