World stock markets in uncertainty
The market needs money. So he convinced global investors that at its September meeting, the fed rate will eventually drop. This will take place either at the urging of Donald trump, or because of the growing risk of an international crisis. Due to trade and currency wars between the US and China, and tensions between the other members of the international trade crisis is quite possible.
Despite the escalating row between Japan and South Korea, global investors continue to ignore the news. According to the international information-analytical Agency Reuters, negotiations America and Japan yesterday and were not successful parties are unable to reach agreement on the bilateral deal and decided to extend the discussion for another day.
Tension in world trade is increasing. Meanwhile, yesterday we heard again from the speech of fed officials that in the current circumstances reducing the base interest rate in America is groundless. Yesterday, the Kansas fed President Esther George said in an interview that the economy does not need lower rates. According to her assessment, it is not yet time for additional easing of monetary policy, especially after the decision to reduce the discount rate in July.
In the stock markets of the world, uncertainty reigns. Increasing nervousness due to the fact that most investors are waiting for today’s speech by Jerome Powell in Jackson hole. The importance of this speech highlights and commentary Esther George. As we have previously mentioned, all major players of the international capital market hope to find in Colin Powell’s speech hints at the continuation of the easing or at least a clearer understanding of the current situation. But it seems to me that anything intelligible we hear. Most likely, global investors also understand it. They have resigned themselves to a period of uncertainty, but as you know, hope dies last.
Today it is impossible to ignore the signals coming from the fields of foreign trade and currency wars, especially because this week’s newsmaker was again the Chinese yuan. He again loudly reminded of itself on the international currency market. The yuan has updated 11-year lows. Global participants at this stage is extremely sensitive to the attacks of the devaluation of the Chinese currency. The President of the United States has repeatedly accused China of currency manipulation and unfair competitive advantage to the detriment of the trade deficit, and exporters from the USA, but China still bends the line.
So, perhaps this week, and it was after the speech Powell’s markets will receive the new guidelines, and we will see acceleration in the global capital market. Let’s see which way things will turn.
Head of analytical Department,
“International financial center”