Tag Archive: ecb

Rapid Inflation Could Be Next

There has been no shortage of issues for global financial markets to contend with in recent months. An aging economic expansion and equity bull market, an accelerating global economic slowdown and the ongoing U.S./China trade war have been at the center of attention. At some point, the economic expansion and bull market in stocks will have run its course, as they always do. Likewise, the war on trade may not go on indefinitely, as it is in the best interest of both sides to come... Continue Reading

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EU Slowdown May Be Worse Than Expected

It’s no secret that the Eurozone continues to struggle with a slow economy. The EU has seen many of the ups and downs that have been seen in the U.S. in recent years while also having to contend with numerous other issues such as massive sovereign debts and policy disagreements. Now, the ECB has slashed its growth and inflation forecasts for the year while also lowering the outlook for 2020 and 2021. This would seemingly acknowledge the fact that the slowdown being seen in Europe... Continue Reading

The Hits Keep on Coming

The gold market has remained under some renewed pressure, as slow summer trading conditions as well as a lack of risk aversion continue to take a toll on the metal. With so many issues currently working against the market, it is not surprising that prices have thus far been unable to rally. The dollar index has played a huge role in gold’s lack of upside in recent months. The greenback is hovering around a 12-month high still, and has thus far not shown any real... Continue Reading

Not So Fast

The U.S. Dollar has been on a tear in recent months, and is currently trading around a 12 month high. The strength seen in the currency in recent months has almost certainly been a major factor in gold’s recent lack of upside, and further gains in the greenback could keep the pressure on. The significant impact the dollar has had on the gold market is not likely to continue indefinitely, however, and once this trade reverses course the outlook for the metal could be extremely... Continue Reading

Rates May Go Up Only to Come Right Back Down

With the U.S. and global economies on more solid footing, the Fed has been raising interest rates as it attempts to normalize monetary policy. Other central banks, such as the ECB, are also looking to end stimulus measures and begin the process of removing monetary stimulus through low rates, QE or both. As central banks remove the punchbowl, however, markets will be left to stand on their own two feet. This could be compared to stock markets continuing to play the game, but now without... Continue Reading

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Things Could Get Dicey

Global markets have exhibited a large degree of calm in recent weeks. That prevailing sense of calm, however, could potentially be hit by some tidal waves in the week ahead. Over the next several days, there are several major issues that have the potential to be market-moving. Over the weekend, the G7 meeting in Canada could make a splash as tensions are running high over global trade. The issue of global trade and the potential for a significant trade war have been a major source... Continue Reading

It Will Only Get Worse

The recent spike in market volatility seen this past week based on unfolding events in Italy should only serve to underscore the importance of being hedged against increasing volatility and rising yields. Although markets are seeing a sense of calm return the last couple of days, the EU-and global markets-remain vulnerable to geopolitical developments that threaten the status quo. It is also important for investors to understand a critical point: That without global central banks still pumping money into the financial system, things could have... Continue Reading

Is the EU Headed For More Trouble?

Just a few years back, the EU, and Greece specifically, dominated the financial media as the nation headed for a major default and bankruptcy. Sovereign debt issues have been an area of focus in the region for some time, and there has been ongoing discussions about the health of the union for years. Those discussions are likely to pick up in pace once again, as recent developments in Italy are a major cause for concern. The country is headed for new elections later in the... Continue Reading

Is Gold Sending a Key Signal?

The gold market has not given up much ground in recent days as the dollar index saw a significant bounce. In fact, the gold market has tested support levels in the mid $1260’s and has seen buying interest uptick and a bounce several dollars higher from that level. While this may, at a glance, appear to be nothing more than standard market “noise,” it could also be indicative of underlying strength in the gold market and perhaps even a split from the market’s correlation to... Continue Reading

Will Central Bankers Ignite the Next Leg Up?

Gold has been trading around the $1300 mark for several sessions now, and the yellow metal may simply be biding its time until there is enough buying “tinder” to stage a clean upside breakout above the recent highs. Fortunately for the gold bulls, there are numerous issues that could potentially fuel a significant break higher in prices, and one of them could be this week’s Fed symposium taking place in Jackson Hole, Wyoming. This symposium is hosted by the Kansas City Federal Reserve and essentially... Continue Reading