MARKET SUMMARY WEEK ENDING 11 SEPTEMBER 2015
15th September 2015
U.K. Rates Seen Rising in Early 2016 as BOE Shrugs Off Turmoil. Investors should brace themselves for an interest-rate increase in early 2016 as the Bank of England shrugs off recent financial market turmoil, according to economists.
Dollar Slips Amid Fed Countdown as Chinese Stocks Resume Losses. The dollar was weaker against most peers as investors weigh the chances of an interest-rate increase going into this week’s Federal Reserve meeting. Asian stocks tracked losses in Chinese equities after weak industrial production and investment reports underscored slowing growth.
Commodities in Review
Oil Bulls Seeing Smaller Glut Increase Bets by Most Since April. Hedge funds added the most bullish oil bets since April on optimism that the global oversupply will disappear as producers slow output.
Gold was one of the best alternative investments in the selloff, returning 2.5% in the past month as the S&P 500 fell 5%. Gold isn’t inversely correlated to the stock market, rather, it has no correlation at all. Still, it does tend to be used by investors as a safe haven in periods of extreme market turmoil, which is why it's a popular portfolio diversifier.
Nine Weekly Reversals Show S&P 500 Traders Have No Clue on Fed. For the ninth time in a row, the Standard & Poor’s 500 Index just posted a weekly return that amounted to a reversal of the prior week’s performance. This time it rose, gaining 2.1 percent, after retreating 3.4 percent in the previous five days. Before that it climbed 0.9 percent, fell 5.8 percent, climbed 0.7 percent -- you get the idea. Such a streak of alternating gains and losses has happened only three times in 20 years, according to data compiled by Bloomberg.
U.K. Stocks Rise After Weekly Gain as BHP, Rio Send Miners Up. U.K. stocks rose, following the biggest weekly gain since July, as commodity producers advanced. The FTSE 100 advanced 1 percent at 8:43 a.m. in London. The benchmark gauge climbed 1.2 percent last week, led by gains through Wednesday as optimism grew that market turmoil in Asia will be contained. Stocks then fell for two days amid concern the Federal Reserve will raise interest rates in a decision this week. The broader FTSE All-Share Index advanced 0.7 percent today and Ireland’s ISEQ Index rose 0.5 percent.
Europe Index Futures Advance After Stocks' Best Week Since July. European equities rose for the first time in three days, led by miners, before this week’s Federal Reserve decision on interest rates.The Stoxx 600 Europe Index added 0.3 percent to 356.85 at 8:17 a.m. in London. The benchmark equity gauge advanced 0.7 percent last week, paring gains in the last two days as investors shifted their focus from China to the timing of the Fed’s first interest-rate hike since 2006. Less than 30 percent of traders are pricing in a raise on Sept. 17.
China's Stocks Decline Most in Three Weeks on Slowdown Concerns. China’s stocks slumped the most in three weeks as data over the weekend added to concern the economic slowdown is deepening and traders gauged the level of state support for equities. The Shanghai Composite Index slid 2.7 percent to 3,114.80 at the close, paring earlier declines of 4.7 percent. The Hang Seng China Enterprises Index trimmed a 1.4 percent gain to percent at 3:03 p.m. in Hong Kong.
Most Emerging Stocks Rise Amid Fed Bets as Chinese Shares Drop. Most emerging-market stocks rose as investors assessed the prospects for an increase in U.S. interest rates. Chinese equities in Shanghai slid after data underscored slowing growth in the world’s second-biggest economy. The MSCI Emerging Markets Index added less than 0.1 percent to 802.69 at 2:26 p.m. in Hong Kong. The MSCI developing-nations stock gauge has fallen 16 percent this year and trades at 10.7 times projected 12- month earnings, a 29 percent discount to the MSCI World Index, according to data compiled by Bloomberg show.
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