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25 Jun 2013
Flash: Global equity selloffs in focus – Investec
FXstreet.com (New York) - According to Lee McDarby, Corporate Treasury at Investec, “The global equity market sell-off has dominated headlines this week and looks set to continue with a big fall in Asia overnight.”
Indeed, the market continues to suffer the repercussions of Fed Chairman Bernanke’s comments, which suggested the Quantitative Easing program may be scaled back later this year. This was further compounded by market concerns of a cash crunch in Chinese interbank markets, which will curb economic growth giving Chinese Premier Li Keqiang the unwanted title of being the first Premier to miss an annual growth target since the Asian financial crisis in 1998.
Despite the sell-off, the USD failed to capitalize and make further gains yesterday as US yields retraced from close to two-year highs, after comments from officials that markets had ‘mis-perceived’ the Fed as becoming more hawkish. “The Federal Reserve’s decision making continues to be driven by the unfolding economic outlook which means the upcoming US data releases will be a key focus.”McDarby adds.
Indeed, the market continues to suffer the repercussions of Fed Chairman Bernanke’s comments, which suggested the Quantitative Easing program may be scaled back later this year. This was further compounded by market concerns of a cash crunch in Chinese interbank markets, which will curb economic growth giving Chinese Premier Li Keqiang the unwanted title of being the first Premier to miss an annual growth target since the Asian financial crisis in 1998.
Despite the sell-off, the USD failed to capitalize and make further gains yesterday as US yields retraced from close to two-year highs, after comments from officials that markets had ‘mis-perceived’ the Fed as becoming more hawkish. “The Federal Reserve’s decision making continues to be driven by the unfolding economic outlook which means the upcoming US data releases will be a key focus.”McDarby adds.