Christmas cheer returns to markets
Despite the horrific attacks that took place in Paris last Friday and subsequent terrorism-related events, the traditional Christmas rally in equities looks to have begun with a reversal of the sell-off from two weeks ago.
Equity investors appear relaxed and also increasingly comfortable with the prospect of a US rate rise, which is looking more and more likely to be announced by the US Federal Reserve at its mid-December meeting.
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Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
Published on 24 Nov 15
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Despite the horrific attacks that took place in Paris last Friday and subsequent terrorism-related events, the traditional Christmas rally in equities looks to have begun with a reversal of the sell-off from two weeks ago.
Equity investors appear relaxed and also increasingly comfortable with the prospect of a US rate rise, which is looking more and more likely to be announced by the US Federal Reserve at its mid-December meeting.Sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
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Equity investors appear relaxed and also increasingly comfortable with the prospect of a US rate rise, which is looking more and more likely to be announced by the US Federal Reserve at its mid-December meeting.
Interestingly, recent surveys show that global fund managers prefer Asia and Europe equities over US equities.
Part of this may be explained by the increasing expectations that the European Central Bank will step in soon with more monetary stimulus.
This talk of more stimulus helped drive European stocks to three-month highs.
As for Asia, focus is on China as it takes steps towards liberalising its economy and evolving monetary policy tools. We expect the People’s Bank of China to keep market interest rates low for some time to come, until there is firm evidence of an economic turnaround. This is also benefiting Asian equities.
Also as fears unwind around Chinese and global growth and sentiment towards emerging markets improve, the Australian Dollar has also rallied against the stronger US Dollar.
While the firmer US dollar combined with higher short-term bond yields has helped push the gold price down to a near five-year low.