Currencies take centre stage
On Thursday of this week, the US equities market will record its second-longest bull run of all time. At 86 months (and counting), the current bull era that started in March 2009 is set to surpass the postwar rally of 1949 to 1956. The only rally it will trail is the decade-long boom of the 1990s that finished with the dotcom bubble burst in March 2000.
Indeed, we’ve seen bullish sentiment across many asset classes recently, particularly emerging markets and commodities, driven by the US Federal Reserve lowering expectations of interest rate tightening this year.
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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 27 Apr 16
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Venezuela tension heats up
Duration 03:16
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Aussie dollar surprises market
Duration 03:10
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Markets climb as investors watch US healt...
Duration 02:31
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On Thursday of this week, the US equities market will record its second-longest bull run of all time. At 86 months (and counting), the current bull era that started in March 2009 is set to surpass the postwar rally of 1949 to 1956. The only rally it will trail is the decade-long boom of the 1990s that finished with the dotcom bubble burst in March 2000.
Indeed, we’ve seen bullish sentiment across many asset classes recently, particularly emerging markets and commodities, driven by the US Federal Reserve lowering expectations of interest rate tightening this year.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.
-
Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healthcare bill
Duration 02:31
[Indeed, we’ve seen bullish sentiment across many asset classes recently, particularly emerging markets and commodities, driven by the US Federal Reserve lowering expectations of interest rate tightening this year.
The Fed is due to meet this week and market participants will be all over the Fed’s statement for signs it may alter its position. There is no expectation that rates will be changed, but any shift in the Fed's more cautious stance will provide fuel for the US dollar to rise and may upset the current calm in markets.
The weakness of the US Dollar against the Yen and Euro has helped ease pressure on China's currency and reduce the risk of a Chinese devaluation, which was a major source of anxiety for global markets at the start of the year.
Markets will also be following the Bank of Japan (BoJ) closely in coming weeks as expectations are high that it will announce further easing measures. Current thinking is that the BoJ may offer negative rates on some loans in an effort to help financial institutions. And in theory, this should sink the Yen.
Brent crude has risen from a low of $37.27 to a high of $46 this month, which is particularly impressive given the collapse of a proposed production freeze deal among the big oil countries in Doha a week ago. However, for now, oil market supply and demand remain on course to strike a better balance later this year.
Of course it’s not just Oil but also the price of iron ore that is on the up. It surged last week to its highest price in 15 months, approaching $70 a tonne.
Investors, however, are reflecting on comments from BHP Billiton's head of Australian operations that the recent rally in the iron ore price may have run its course.