(Reuters) - 1/ELECTION NIGHT FEVER FILE PHOTO: Passersby are reflected on an electronic board showing the exchange rates between the Japanese yen and the U.S. dollar, the yen against the euro, the yen against the Australian dollar, Dow Jones Industrial Average and other market indices outside a brokerage in Tokyo, Japan, August 6, 2019. REUTERS/Issei Kato More than three years after Britons narrowly voted to leave the European Union, the Dec. 12 general election will effectively offer them another vote on how they want Brexit to proceed and if they still think it should go ahead. Opinion polls showing the Conservative Party with a big lead have fueled a scintillating pound rally and ‘short’ sterling positions have been cut to seven-month lows; the belief is the Conservatives will quickly implement Brexit and end the uncertainty that’s weighed on the economy since 2016. Polls’ patchy track record worries some people though, and that’s evident … [Read more...] about Take Five: Euphoria to despair and back again
Fed funds rate
Last week, US Deputy Attorney General Rod Rosenstein took aim at a once-fringe public health movement that’s now gaining political traction due to the rising death toll of the opioid epidemic.In a forceful op-ed in the New York Times, Rosenstein slammed so-called safe injection sites, where people can use heroin and other drugs under medical supervision without threat of law enforcement. Prompted by California’s recent approval of one such site in San Francisco, he said drug users need treatment, not “a taxpayer-sponsored haven to shoot up.”Roughly 100 safe injection sites exist in 66 cities across the world, but the US has yet to open one, despite a relentless overdose epidemic that killed nearly 72,000 Americans last year. The problem has gotten so dire that at least 20 cities, counties, and states have started to talk about opening these sites — despite the threat of a federal crackdown.“Because federal law clearly prohibits injection sites, … [Read more...] about The Feds Say Safe Injection Sites Are Illegal. Here Are All The Places Considering Them Anyway.
The Australian dollar has dropped to its lowest level in almost seven years in overnight trading, falling to US68.62c. It had fallen to US68.27c in earlier trading in New York as oil prices slipped below US$30 a barrel on Friday and bearish sentiment took hold of stock markets with the Dow Jones falling to its lowest level since 2014. Australian shares also took a battering on Friday. The benchmark ASX/S&P200 hit a two-and-a-half-year low after it shed 0.3% to close at 4892.8 points. “The oil market is just a mess and it all seems to be stemming from that,” said Tobias Davis, a currency hedging manager with Western Union in London. Some analysts are predicting the dollar will drop to US65c by the end of March, before returning to around US70c by the end of the year. “We believe the Fed will lift interest rates again in March, June and December,” said the Commonwealth Bank’s chief currency and rates strategist, Richard Grace. “We look for the … [Read more...] about Aussie dollar falls to seven-year low amid falling oil prices
(Reuters) - U.S. job growth increased by the most in 10 months in November as former striking workers returned to General Motors’ (GM.N) payrolls and the healthcare industry stepped up hiring, confirming that the economy remained on a moderate expansion path despite a prolonged manufacturing slump. FILE PHOTO: Work crews construct a new hotel complex on oceanfront property in Encinitas, California, U.S., November 26, 2019. REUTERS/Mike Blake MARKET REACTION: STOCKS: S&P e-mini futures ESv1 extend slight gain, last up 0.67%, pointing to higher open BONDS: Treasury yields rise; 2-year US2YT=RR at 1.6391% and 10-year US10YT=RR at 1.8589% FOREX: The dollar index .DXY extends slight gain, last up 0.27% COMMENTS: ANDRE BAKHOS, MANAGING DIRECTOR, NEW VINES CAPITAL LLC, BERNARDSVILLE, NEW JERSEY “Basically the market is very positive on this news because what it does is, it confirms a strong economy even though we have seen a little weakness come in. Companies … [Read more...] about Instant View: U.S. Nov payrolls up by most in 10 months
Mounting concern about the inflationary impact of falling US unemployment has sent tremors through global financial markets amid fears that the long post-financial crisis rally in asset prices is nearing its end. The effective interest rate on 10-year benchmark US bonds reached their highest level for seven years after the latest snapshot of the American labour market showed fewer workers claiming jobless benefits. Shares on Wall Street fell sharply as investors predicted that the monthly official payroll report out on Friday would show that the drop in unemployment was leading to pressure for higher wages. The Dow Jones Industrial Average dropped for the first time in six days. The more broadly based S&P 500 also fell and the technology-heavy Nasdaq was down nearly 2%, its worst performance since June. They managed to rally slightly before the closing bell but all eyes will be on Friday’s job report. And good news for employees may be bad news for investors. Asian markets … [Read more...] about World markets rattled by US inflation concerns
A volatile week across global stock markets has escalated into a frenzied sell-off, with European stock markets plunging to their lowest level in 20 months on Thursday. In the UK the FTSE 100 fell to a six-month low after Wall Street suffered its biggest drop in eight months, with the Dow Jones losing more than 800 points. Why are markets tanking? The sell-off is being fuelled by concerns over rising US interest rates, political uncertainty in Italy, mounting trade tensions between the US and China, and crises in emerging markets such as Turkey and Argentina. Donald Trump added to the pressure by branding the US Federal Reserve “crazy” for planning further rate rises. The US economy is booming, prompting the Fed to raise rates to keep a lid on inflation. Rising interest rates mean higher borrowing costs for companies and individuals, such as higher mortgage rates. Investors are fearful that firms and consumers will struggle to cope with higher costs. Charlie Ripley, a … [Read more...] about Why are markets plunging and which stocks are worst hit?