Looking ahead, investors were awaiting the Fed meeting!
DOLLAR GAINS
World stocks hit another record high on Monday and the dollar reached an eight-week peak against the yen on expectations the U.S. Federal Reserve will unveil plans this week to trim its bloated balance sheet.
With no new actions by North Korea over the weekend, investors pushed Europe’s main share index to a six-week high.
In currencies, the dollar gained as much as 0.5 percent against the yen to hit 111.42 JPY=, its highest since late July. The Bank of Japan is widely expected to maintain its massive asset buying campaign at a meeting on Thursday.
Political uncertainty may have a part to play in the BOJ’s thinking. Japanese Prime Minister Shinzo Abe was considering calling a snap election for as early as next month to take advantage of his improved approval ratings and of disarray in the main opposition party.
I think the U.S. economy is on a solid footing. To the extent that the hurricane does not materially affect the economic data over the coming months, I suspect you are going to see the Fed raising interest rates at least one more time this year.
Copper Prices Fall on Signs of China Slowdown
Investors see flagging demand for the metal after Chinese industrial production weakens
Copper prices fell to their lowest level in a month Friday as investors locked in gains on anticipation that China’s economy will slow in the next few months.
Copper is heavily used in construction and manufacturing, making its price sensitive to signs of flagging growth. China’s economic health is particularly important to copper investors, as the country accounts for some 45% of global demand for the metal.
We continue to expect China’s economy to slow later this year and the latest activity data add to evidence that this is already happening.
Bonus: www.poundsterlingliv...ian-dollar-valuation
World stocks hit another record high on Monday and the dollar reached an eight-week peak against the yen on expectations the U.S. Federal Reserve will unveil plans this week to trim its bloated balance sheet.
With no new actions by North Korea over the weekend, investors pushed Europe’s main share index to a six-week high.
In currencies, the dollar gained as much as 0.5 percent against the yen to hit 111.42 JPY=, its highest since late July. The Bank of Japan is widely expected to maintain its massive asset buying campaign at a meeting on Thursday.
Political uncertainty may have a part to play in the BOJ’s thinking. Japanese Prime Minister Shinzo Abe was considering calling a snap election for as early as next month to take advantage of his improved approval ratings and of disarray in the main opposition party.
I think the U.S. economy is on a solid footing. To the extent that the hurricane does not materially affect the economic data over the coming months, I suspect you are going to see the Fed raising interest rates at least one more time this year.
Copper Prices Fall on Signs of China Slowdown
Investors see flagging demand for the metal after Chinese industrial production weakens
Copper prices fell to their lowest level in a month Friday as investors locked in gains on anticipation that China’s economy will slow in the next few months.
Copper is heavily used in construction and manufacturing, making its price sensitive to signs of flagging growth. China’s economic health is particularly important to copper investors, as the country accounts for some 45% of global demand for the metal.
We continue to expect China’s economy to slow later this year and the latest activity data add to evidence that this is already happening.
Bonus: www.poundsterlingliv...ian-dollar-valuation