InvestMacro

By JustMarkets

At yesterday’s stock market close, the Dow Jones Index (US30) jumped by 1.16%, while the S&P 500 Index (US500) added 0.90%. The NASDAQ Technology Index (US100) closed positive by 0.61% on Monday.

Warren Buffett’s Berkshire Hathaway (BRK) reported better-than-expected quarterly results on the back of strong results from its insurance companies, sending its share price up more than 3% on the report. Palantir (PLTR) shares were up more than 2% after the company released its second-quarter results. The company’s revenue rose by 13% year-over-year to $533 million, slightly below the consensus estimate of $534.21 million.

The US Federal Reserve spokeswoman Michelle Bowman reiterated her view that the US central bank may need to raise rates further to fully restore price stability. “I supported an increase in the federal funds rate at our July meeting, and I expect that additional rate hikes will likely be needed to bring inflation down to the level set by the FOMC,” Bowman said.

Equity markets in Europe were mostly down yesterday. Germany’s DAX (DE40) was down by 0.01%, France’s CAC 40 (FR40) added 0.06% on Monday, Spain’s IBEX 35 (ES35) decreased by 0.10%, and the UK’s FTSE 100 (UK100) closed negative by 0.13%.

Germany’s Central Bank (Bundesbank) stops charging interest on government cash. Short-term German debt enjoyed strong demand on Monday after the country’s central bank said it would stop paying interest on domestic government deposits, which could lead to billions of euros flowing into higher-yielding securities.

UK food price inflation is likely to fall to around 10% later this year, but further policy tightening will be needed for overall consumer price inflation (CPI) to return to the 2% target, Bank of England (BoE) chief economist Huw Pill said on Monday. The policymaker also believes that multiple rate hikes have yet to hit the UK economy.

Natural gas prices have been mostly declining over the past week. Overall, prices for this natural gas have fallen by about 2.3% over the past two weeks. This is the worst performance in this interval since early July. However, despite the decline, natural gas remains in a neutral price range.

Asian markets were down yesterday. Japan’s Nikkei 225 (JP225) gained 0.19%, China’s FTSE China A50 (CHA50) fell by 0.58%, Hong Kong’s Hang Seng (HK50) ended the day down by 0.01%, and Australia’s S&P/ASX 200 (AU200) ended Monday negative by 0.22%.

Chinese indices extended declines at the open on Tuesday as trade balance data showed that the country’s exports and imports continued to decline in July. The data points to increased pressure on the Chinese economy due to weak demand and does not bode well for the broader Asian markets related to trade with the country.

Japanese authorities are unlikely to intervene in currency markets to support the yen, as the currency has already found some support and will rise significantly as US interest rates rise, according to former finance official Eisuke Sakakibara.

S&P 500 (F)(US500) 4,518.44 +40.41 (+0.90%)

Dow Jones (US30) 35,473.13 +407.51 (+1.16%)

DAX (DE40)  15,950.76 −1.10  (−0.01%)

FTSE 100 (UK100) 7,554.49 −9.88 (−0.13%)

USD Index  102.09 +0.08 (+0.07%)

• – Australia NAB Business Confidence (m/m) at 04:30 (GMT+3);
• – China Trade Balance (m/m) at 06:00 (GMT+3);
• – German Consumer Price Index (m/m) at 09:00 (GMT+3);
• – US Trade Balance (m/m) at 15:30 (GMT+3);
• – Canada Trade Balance (m/m) at 15:30 (GMT+3).

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By JustMarkets

At the close of the stock exchange on Friday, the Dow Jones Index (US30) fell by 0.43% (-1.13% for the week), and the S&P 500 Index (US500) fell by 0.53% (-2.33% for the week). The NASDAQ Technology Index (US100) closed negative by 0.36% (-2.99% for the week). The weekly percentage declines for the S&P 500 (US500) and NASDAQ (US100) were the largest since March as investors locked in profits. Rising Treasury bond yields, which are considered one of the safest investments in the world because the US government backs them, have dampened demand for stocks. Investor focus has now shifted to US inflation data this week. A decline in consumer prices could lead to more stock buying.

US labor market data on Friday showed resilience again. Over the last month, the US economy added 187k jobs (expectation +205k), and the unemployment rate fell from 3.6% to 3.5%. But the probability of an interest rate hike at the September meeting did not increase, indicating that investors expect the US Fed to have peaked rates. Traders also began to worry about the first signs of cooling in the labor market in terms of falling job openings and rising jobless claims.

Two Federal Reserve officials said that slower job growth in the US indicates that the labor market is coming to a better equilibrium, and there is no need for further rate hikes. They said the US Central Bank needs to start thinking about how to keep interest rates high and for how long.

In Canada, there is a cooling of the labor market. In July, the Canadian economy unexpectedly showed a contraction of 6,400 jobs (forecast + 24,600), and the unemployment rate rose to 5.5%. This reinforced analysts’ expectations that the Bank of Canada would suspend its campaign to raise interest rates. Money markets now expect a rate hike in September with a ;28% probability, up from 32% before the report.

Equity markets in Europe were mostly up on Friday. Germany’s DAX (DE40) rose by 0.37% (-2.94% for the week), France’s CAC 40 (FR40) gained 0.75% on Friday (-2.11% for the week), Spain’s IBEX 35 (ES35) rose by 0.66% (-3.18% for the week), and the UK’s FTSE 100 (UK100) closed positive by 0.47% (-1.69% for the week). Today, Germany will release data on industrial production. The Index is expected to decline amid slowing global demand. Germany’s economy is stagnating as weak purchasing power, higher interest rates, and low manufacturing orders have put pressure on the eurozone’s largest economy.

Gold prices rose slightly on Monday, recovering from sharp losses last week. Rising US Treasury bond yields, caused by some cooling of the labor market and due to the downgrade of US ratings, had a negative impact on gold prices in recent sessions. As a reminder, that gold has an inverse correlation to the yield of US government bonds.

Oil prices are showing growth for the sixth week in a row after Saudi Arabia cut production last week. Oil traders expect the supply cut to offset a potential slowdown in demand this year. Expectations of additional stimulus measures in China, the biggest oil importer, also contributed to sentiment.

Asian markets were mostly down last week. Japan’s Nikkei 225 (JP225) fell by 2.83% for the week, China’s FTSE China A50 (CHA50) fell by 0.28%, Hong Kong’s Hang Seng (HK50) ended the week down by 3.45%, and Australia’s S&P/ASX 200 (AU200) ended the week negative by 1.06%.

This week’s focus will be on earnings reports from some of Asia’s biggest companies. This Thursday, Chinese e-commerce giant Alibaba (BABA) will release its June earnings report, which could provide additional insights into Chinese consumers. Alibaba is expected to provide more details on its plan to split into six separate companies. Japanese technology giants Sony Corp. and SoftBank will also report quarterly earnings this week, while Commonwealth Bank of Australia, Australia’s largest bank, will report its results for the fiscal year ended June 30 on Wednesday. The focus will be on how Asia’s biggest companies are coping with rising global interest rates and whether the deteriorating economic situation is reflected in corporate earnings.

This week also sees key inflation data from the US and China, with the latter expected to slip into disinflation amid a slowing economic recovery. China’s trade balance data will give a fuller picture of the state of Asia’s largest economy amid weaker demand for goods in domestic and foreign markets.

S&P 500 (F)(US500)  4,478.03  −23.86  (−0.53%)

Dow Jones (US30) 35,065.62  −150.27 (−0.43%)

DAX (DE40)  15,951.86 +58.48  (+0.37%)

FTSE 100 (UK100) 7,564.37 +35.21 (+0.47%)

USD Index  102.01 -0.53 (-0.52%)

• – German Industrial Production (m/m) at 09:00 (GMT+3);
• – FOMC Member Harker Speaks at 15:15 (GMT+3);
• – FOMC Member Bowman Speaks at 15:30 (GMT+3).

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By JustMarkets

US stock indices continued to decline yesterday. At the close of the stock market yesterday, the Dow Jones Index (US30) was down by 0.19%, while the S&P 500 Index (US500) decreased by 1.25%. The NASDAQ Technology Index (US100) closed negative by 0.10%.

The monthly Nonfarm Payrolls labor market report will be released in the United States today. Over the past year, economists have consistently underestimated the strength of the economy, leading to a repeated underestimation of employment gains. Given this pattern and forecast bias, it is reasonable to believe that the NFP numbers could surprise upward again. The latest labor market data this week was mixed. On the one hand, job openings and jobless claims rose, indicating the first signs of a cooling labor market. On the other hand, the ADP report was strong, exceeding the consensus forecast by two times. Therefore, today’s NFP data could be crucial in understanding where the US labor market stands.

The US Services Business Activity Index fell to 52.7 in July from June’s reading of 53.9, as business activity, employment, and new orders declined and prices rose. The services sector has the biggest impact on assessing the health of the US economy, so changes in subsections of the report could indicate the future direction of the economy.

Amazon (AMZN) released second-quarter results on Thursday that beat analysts’ estimates and provided an upbeat outlook for the third quarter. Amazon shares were up more than 6% in after-hours trading following the report. Qualcomm (QCOM) shares fell more than 8% after the company provided a weak outlook for the current quarter, with revenue falling short of Wall Street estimates. On Thursday, Apple (AAPL) reported third-quarter results that beat forecasts as strength in services helped offset iPhone sales that fell short of expectations. Apple shares were down by 1% in trading following the report.

Equity markets in Europe were declining yesterday. Germany’s DAX (DE40) was down by 0.79%, France’s CAC 40 (FR40) fell by 0.72%, Spain’s IBEX 35 (ES35) lost 0.39%, and the UK’s FTSE 100 (UK100) closed negative by 0.43%.

The Bank of England (BoE) expectedly raised interest rates by 0.25% yesterday. The distribution of votes changed slightly from the previous decision: 7 Committee representatives were in favor of a rate hike, and only one was in favor of keeping the rate unchanged (previously 2). Meanwhile, representatives Haskel and Mann favored a 0.5% rate hike, indicating the desire of some Bank policymakers to pursue aggressive monetary policy. Core inflation was cited as the most important aspect of inflation, which has yet to show a significant decline, while a decision on quantitative tightening (QT) measures will be made next month.

Saudi Arabia announced on Thursday that it would extend its production cuts in August and September by one million barrels per day. This helped push the oil price up 2% yesterday. OPEC+ countries will meet today to determine the next production quotas.

Asian markets were mostly down yesterday. Japan’s Nikkei 225 (JP225) decreased by 1.68%, China’s FTSE China A50 (CHA50) added 0.89%, Hong Kong’s Hang Seng (HK50) was down by 0.49% on Thursday, and Australia’s S&P/ASX 200 (AU200) was negative by 0.58% on the day. But Chinese stocks returned to the upside on Friday, outperforming most of their regional peers. China’s top economic committees said in a joint statement that the government would take additional measures to boost consumer spending and improve local liquidity. Business activity data released this week showed China’s economy started the third quarter on a weak note.

S&P 500 (F)(US500) 4,501.89  −11.50  (-0.25%)

Dow Jones (US30) 35,215.89  −66.63 (−0.19%)

DAX (DE40)  15,893.38  −126.64  (−0.79%)

FTSE 100 (UK100) 7,529.16 −32.47 (-0.43%)

USD Index  102.50 -0.09 (-0.09%)

• – Australia RBA Monetary Policy Statement (m/m) at 04:30 (GMT+3);
• – UK Construction PMI (m/m) at 11:30 (GMT+3);
• – Eurozone Retail Sales (m/m) at 12:00 (GMT+3);
• – US Nonfarm Payrolls (m/m) at 15:30 (GMT+3);
• – US Unemployment Rate (m/m) at 15:30 (GMT+3);
• – Canada Unemployment Rate (m/m) at 15:30 (GMT+3);
• – Canada Ivey PMI (m/m) at 17:00 (GMT+3).

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By JustMarkets

The US stock indices fell sharply yesterday on the back of strong labor market data and as Fitch Ratings downgraded the US credit rating. At the close of the stock market yesterday, the Dow Jones Index (US30) decreased by 0.98%, while the S&P 500 Index (US500) lost 1.38%. The NASDAQ Technology Index (US100) closed negative by 2.17% yesterday.

Fitch downgraded the US credit rating to AA+ from AAA due to the recent controversy over raising the national debt ceiling, the deteriorating balance of the US government budget, aggressive Fed interest rate hikes, and the continued high probability of recession. A similar situation was in 2011, when there was serious tension around raising the US debt ceiling, and the debt limit was also raised at the last minute. Then Standard & Poor’s downgraded the US credit rating to AA+ from AAA, which remains the same until now. A radical downgrade, of course, will not change much economically, but it is still a strong blow to the image of the US.

Morgan Stanley analysts believe that despite progress in reducing overall inflation, core inflation, which excludes more volatile changes in food and energy prices, the Fed’s preferred measure of inflation, remains far from the 2% target. In addition to inflation, the economy is also currently characterized by a labor market reflecting full employment and economic conditions that are still relatively robust. These factors mean that while investors may think the Fed’s tightening cycle is largely over, policymakers may remain committed to higher interest rates for the longer term.

Equity markets in Europe fell yesterday. Germany’s DAX (DE40) decreased by 1.36%, France’s CAC 40 (FR40) fell by 1.26%, Spain’s IBEX 35 (ES35) was down by 1.83%, and the UK’s FTSE 100 (UK100) closed negative by 1.36%.

Switzerland will release inflation data today. While the inflation picture in Switzerland looks rosy, the Swiss National Bank (SNB) is expected to raise the interest rate again at its September 21 meeting. The SNB is concerned that inflation could reverse direction and rise to 2% by the end of the year due to higher service sector inflation and higher mortgage costs.

On Wednesday, crude oil prices fell more than 2%. What’s interesting is that the drop came on a day when the Energy Information Administration reported a record decline in weekly US crude oil inventories. Normally, a decline in inventories leads to a rise in quotes, but amid a stronger dollar, oil is correcting.

Asian markets were mostly down yesterday. Japan’s Nikkei 225 (JP225) fell by 2.30%, China’s FTSE China A50 (CHA50) fell by 1.04%, Hong Kong’s Hang Seng (HK50) declined by 2.47% on Wednesday, and Australia’s S&P/ASX 200 (AU200) was negative by 1.29% on the day. Despite analysts downplaying the direct impact of the US downgrade, the move did trigger a wave of selling on global stock markets as investors began to take profits after strong gains in June and July. At the same time, the resilience of the US economy, especially in the labor market, gives the Federal Reserve more room to further raise interest rates, which does not bode well for risk-oriented stock markets.

S&P 500 (F)(US500) 4,513.37  −63.36  (-1.38%)

Dow Jones (US30) 35,282.82  −347.86 (−0.98%)

DAX (DE40)  16,020.02  −220.38  (−1.36%)

FTSE 100 (UK100) 7,561.63 −104.64 (-1.36%)

USD Index  102.61 +0.31 (+0.30%)

• – Japan Services PMI (m/m) at 03:30 (GMT+3);
• – Australia Trade Balance (m/m) at 04:30 (GMT+3);
• – Switzerland Consumer Price Index (m/m) at 09:30 (GMT+3);
• – German Services PMI (m/m) at 10:55 (GMT+3);
• – Eurozone Services PMI (m/m) at 11:00 (GMT+3);
• – UK Services PMI (m/m) at 11:30 (GMT+3);
• – Eurozone Producer Price Index (m/m) at 12:00 (GMT+3);
• – UK BoE Interest Rate Decision (m/m) at 14:00 (GMT+3);
• – UK BoE Monetary Policy Statement (m/m) at 14:00 (GMT+3);
• – UK BoE Gov Bailey Speaks at 14:30 (GMT+3);
• – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
• – US ISM Services PMI (m/m) at 17:00 (GMT+3);
• – US Natural Gas Storage (w/w) at 17:30 (GMT+3).

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By ForexTime 

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

By JustMarkets

The US stock indices were traded yesterday without any unified dynamics. At the close of the stock exchange yesterday, the Dow Jones Index (US30) rose by 0.20%, and the S&P 500 Index (US500) fell by 0.27%. The NASDAQ Technology Index (US100) closed yesterday negative by 0.43%.

The US service sector continues to perform relatively strongly, but manufacturing is struggling, as evidenced by the ninth consecutive decline of the ISM index. At the same time, residential construction is picking up due to a shortage of homes for sale, and non-residential starts are struggling due to tighter credit conditions. The July ISM manufacturing index rose to 46.4 from 46.0 (consensus 46.9), but given that it is below the 50 level, this still indicates a contraction in the sector, and this is the ninth consecutive month of contraction. The New Orders Index rose to 47.3 from 45.6 (a contraction, but slower than in June), and the Manufacturing Index ISM jumped to 48.3 from 46.7. Despite the rising reading, all components related to manufacturing activity remain in contraction territory.

The US labor market has begun to show the first signs of cooling. According to the JOLTS report, job openings fell to 9.582 million in June from a downward revised May figure of 9.616 million. The consensus had expected a result of 9.6 million. Also weak was the employment figure, which fell to 44.4 from 48.1, the lowest level in three years. Only 17% of industries reported an increase in hiring, down from 33% in June. Such data suggests Friday’s Nonfarm Payrolls report will be weak.

Pfizer Inc (PFE) reported mixed quarterly results. Profit exceeded forecasts, but revenue fell short of expectations. The company also lowered its full-year earnings outlook, warning of near-term revenue challenges. Merck & Company Inc (MRK), meanwhile, reported a narrower loss as second-quarter revenue exceeded analysts’ forecasts, helped by higher sales of cancer drug Keytruda. Uber Technologies Inc (UBER) shares rose more than 2% after its third-quarter outlook was better than the second-quarter results but missed analysts’ forecasts on both the top and bottom lines.

Equity markets in Europe fell yesterday. Germany’s DAX (DE40) decreased by 0.85%, France’s CAC 40 (FR40) fell by 0.85%, Spain’s IBEX 35 (ES35) lost 0.89%, and the UK’s FTSE 100 (UK100) closed negative by 0.43%.

Oil prices rose in Asian trading on Wednesday, remaining at more than three-month highs, as industry data pointed to a much larger-than-expected decline in US inventories over the past week.

Asian markets were mostly up yesterday. Japan’s Nikkei 225 (JP225) increased by 0.92% yesterday, China’s FTSE China A50 (CHA50) was up by 0.38%, Hong Kong’s Hang Seng (HK50) decreased by 0.34% on Tuesday, and Australia’s S&P/ASX 200 (AU200) was positive by 0.54%. Most Asian stocks started to fall at the open on Wednesday, with technology stocks facing profit-taking after Fitch unexpectedly downgraded the US sovereign rating.

The Bank of Japan’s decision last week to change its policy of controlling bond yields was aimed at making the massive stimulus more sustainable, not a retreat from ultra-low interest rates, BOJ Deputy Governor Shinichi Uchida said Wednesday. Uchida also said there is still a long way to go before conditions are ripe for raising the short-term interest rate from the current level of minus 0.1%.

New Zealand’s unemployment rate rose in the second quarter, and wage inflation showed signs of slowing, suggesting that the labor market is starting to weaken after continuous rate hikes by the Central Bank. The unemployment rate rose to 3.6% from 3.4%. Economists expect further deterioration in New Zealand’s labor market conditions.

S&P 500 (F)(US500) 4,576.72 −12.24  (-0.27%)

Dow Jones (US30) 35,630.55  +71.02 (+0.20%)

DAX (DE40)  16,307.64 −139.19  (-0.85%)

FTSE 100 (UK100) 7,666.27 33.14 (-0.43%)

USD Index  102.23 +0.37 (+0.36%)

• – New Zealand Unemployment Rate (q/q) at 01:45 (GMT+3);
• – Japan Monetary Policy Meeting Minutes at 02:50 (GMT+3);
• – US ADP Nonfarm Employment Change (m/m) at 15:15 (GMT+3);
• – US Crude Oil Reserves (w/w) at 17:30 (GMT+3).

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By ForexTime

The US has lost its top-tier AAA credit rating as assigned by Fitch Ratings, now downgraded down one level to AA+.

US Treasury Secretary Janet Yellen “strongly disagreed” with Fitch’s decision, blasting it as “arbitrary and based on outdated data”.

But that hasn’t stopped global markets from adopting a slightly risk-off mode for the time being:

• US stock futures are falling to extend August’s losses so far
• Gold is edging higher though still trading around the mid-$1900s
• The safe haven Japanese Yen is the only G10 currency to climb against the US dollar

However, the full fallout directly from this downgrade should prove to be limited and short-lived.

Read on to find out more.

What does Fitch Ratings do?

Fitch Ratings assigns a credit rating to various entities that issue debt, ranging from governments to corporates.

• Fitch’s highest rating is ‘AAA’, which means the country/company has the lowest risk of defaulting, i.e. has an “exceptionally strong capacity” to meet its financial commitments, such as paying interest on a bond.
• The lowest rating is ‘D’, which is assigned when the debt issuer has entered into bankruptcy proceedings.

This credit rating points to the financial strength and ability to meet debt commitments, such as making interest payments on bonds issued.

How do investors use these credit ratings?

Global investors rely on these credit ratings to decide which country’s debt to buy:

• Debt with the ‘AAA’ through ‘BBB’ ratings are deemed as investment grade (low to moderate risk of default).
• Debt issuers with ‘BB’ and lower ratings are deemed as “speculative grade” (high risk of default, i.e. not able to meet its payment obligations).

  Investors with a higher tolerance for risk may buy such debt with lower credit ratings, as they tend to offer higher yields to compensate investors for the greater risk of default.

In short, the higher the credit rating, the “safer” the investment is deemed, and vice versa.

Why was the US downgraded?

The US was downgraded because Fitch Ratings expects the following:

• “Fiscal Deterioration”: US government’s financial strength to worsen over the next 3 years.
• “Rising Deficit”: US government set to spend more money at a faster pace than it can generate income (taxes), resulting in a bigger budget gap.
• “Erosion of governance”: the repeated debt-ceiling standoffs in US Congress elevates the risk of a first-ever US default, which was only just narrowly avoided this past May.

This downgrade is a follow-through on Fitch’s warning, made back in May, amidst the US debt ceiling drama.

Fitch Rating’s full statement can be found here.

Has this happened before for the US?

Yes, almost exactly 12 years ago.

The US experienced its first-ever credit rating downgrade back in August 2011, by S&P – another credit ratings agency.

Hence, given that Fitch’s move is not unprecedented (we’ve seen it before over a decade ago), nor does it unveil anything startling that market’s don’t already know, that should explain the relatively muted reaction in the markets.

Are markets reacting as expected?

Yes, but not without a tinge of irony.

Amidst the risk-off moves mentioned at the top of this article …

the US dollar – the world’s “preeminent” reserve currency – is also gaining against other currencies, including many of its G10 and emerging-market counterparts.

Why is the USD’s strength ‘ironic’?

Typically, if a country’s credit rating is downgraded, the initial reaction would be for investors to shy away from its assets and currency.

But this is the United States that we’re talking about here – the world’s largest economy!

After all, global financial markets and investors have long seen US Treasuries (debt issued by the US government) as the “golden-standard” for risk-free assets.

Hence, investors have been flocking to shorter-term US Treasuries (yields on 2-year and 5-yearTreasuries are moving lower) as such “safe haven” assets help investors protect their wealth amid times of uncertainty.

Ironic, given that Fitch Rating’s downgrade actually casts doubt over the US government’s ability to meet its debt obligations.

How long will the risk-off mode last?

Not long, probably.

At least in terms of whatever market reaction that can and should be attributed to today’s decision by Fitch Ratings.

After all, long-time investors will point to how the S&P 500 – the benchmark for US stock markets – recovered all its losses within 6 months after that first-ever US credit ratings downgrade back in August 2011.

Back then, the S&P 500 surged by nearly 30% between that August 2011 intraday trough until that peak in early-April 2012.

In today’s context, investors appear to have greater concerns at present.

The likelihood of a global recession and the risk of further Fed rate hikes – these factors are set to be the greater catalyst for a sustained risk-off mode across global financial markets, rather than Fitch’s downgrade of the US.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com