The paper says following the lead of economists including Lawrence Summers, some analysts now argue that aging populations, slower productivity growth and a reluctance around the world to spend and invest have propelled advanced economies into so-called secular stagnation.
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GBP/USD is supported in the range of 1.3018 now trading at 1.3075 levels.
The stock was the top drag on all three major USA stock indexes. The consumer price index rose 0.4 percent year-on-year, same as in July.
Fed Vice Chairman Stanley Fischer said early on Tuesday that the United States job market is close to full strength and it is impossible to say whether the next interest rate hike would be “one and done”, according to media reports.
Friday suggested a dovish Yellen had been broadly priced in, so her more hawkish tone (and those of others) rather caught markets on the hope. The odds this morning of a December rate hike stand at 57% Most investors are ignoring any chance of a November rate hike, as the FOMC meeting, which comes 6 days before the Presidential election.
Fed vice chair Stanley Fischer backed-up his dovish comments last week by telling Bloomberg that he doesn’t expect a “one and done” approach to a hike.
Gold is headed for the first monthly decline since May as investors price in the prospect of higher USA borrowing costs by the end of the year and slowing purchases of bullion-backed exchange-traded funds. On Tuesday it traded 0.1 percent lower on the day at $1.3080, though it was up 0.3 percent against a broadly weaker euro at 85.13 pence.
The euro weakened to $1.1121, the lowest since August 10, before recovering to $1.1152. The common currency was poised to lose 0.2 percent on the month.
Oil futures were down 1% Monday on oil glut worries, as Iraq revealed plans to increase production, and a cease fire between the Nigerian government and rebels in the oil-rich Niger Delta region was announced.
Apple Inc was the largest weight on US stock indexes on Tuesday after antitrust regulators ordered the company to pay about $14.5 billion in back taxes to the Irish government, but gains in bank shares partly offset the decline.
The Dow Jones industrial average closed down 48.69 points, or 0.26 per cent, at 18,454.3.
Fears of premature rate hikes have sent markets into a right tizzy over the last two years, so why the lack of interest this time around?
“Technicals show that gold and silver prices need some correction and will see some mild rebound”.
Brent crude futures were up 17 cents at $49.43 a barrel, US crude added 21 cents to $47.19, while gold slipped 0.2 percent at $1,320.79 per ounce.
The Australian dollar edged up 0.2 percent to $0.7526 AUD=D4 on bargain hunting after its overnight slide to a one-month trough of $0.7500 against the broadly stronger USA currency.
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West Texas Intermediate closed with losses of 1.03% at $46.49 and Brent crude down 1.7% to $48.43.
