If any further evidence was needed of the long term direction of travel for global financial markets, one need look no further than Aberdeen Asset Management’s announcement that it has been granted a business licence to operate in China.
In holding interest rates at rock bottom this week, the Federal Reserve has set a dangerous precedent which may come back to haunt it, and the global economy.
The Fed should not raise interest rates now, says Fidelity’s Eugene Philalithis, but when they do it could throw up compelling opportunities in unloved asset classes.
With the most anticipated interest rate decision of recent times imminent, it seems the Federal Reserve is firmly stuck between a rock and a hard place.
All eyes are on Janet Yellen and the Federal Reserve this week as investors brace themselves for one of the most anticipated interest rate decisions ever.
Further yuan devaluation could make asset allocation even tougher going forward, says Tilney Bestinvest’s Seager-Scott.
Economic news from China has been the root cause of market jitters during the summer, although the recent spike in market volatility did not lead to signs of distress within the financial system, in the manner of 2007/8.
Following the publication of the Federal Reserve’s minutes from its July meeting, the market appears to be betting on a September lift-off for the first interest rate hike.
The Federal Reserve is edging towards its first interest rate rise in almost 10 years, says Royal London’s Ian Kernohan, but another round of decent economic data is needed to seal the deal.
China and Greece are merely distractions, says Liontrust’s John Husselbee, and investors should be focusing on the US interest rate headline event.
Bottom-up investing will be crucial to US equity investors as the market enters the next phase of the investment cycle, according to Neptune’s Felix Wintle.
Europe is becoming the world’s ‘comeback kid’ in economic terms, according to chief strategist at Julius Baer Christian Gattiker.
