PFM Trading says traders are waiting for the latest installment of Fed rhetoric on future rate hikes.
According to PFM Trading, after rallying strongly from the lows set in January, global stock markets are awaiting the next installment of rhetoric from the Federal Reserve on the timing of future hikes in the Fed Funds rate.
2016 began with precipitous selling around the world as worries over the global economy and China’s slowdown saw investors question the high valuations for equities. Since then, mildly positive data from the US economy and further monetary policy accommodation from central banks of Europe and Japan have help markets recover.
Nonetheless, markets are looking for direction from the most powerful central bank in the world and although the Fed is expected to leave rates unchanged this time round, investors will be watching Chair Janet Yellen’s statement for clues on when it may hike again.
“There’s an awful lot of chatter in the market about the impotence of central banks but, despite that, markets still seem to hang on their every word,” said PFM Trading’s Vice-President, Edward Gold. “We’re certainly not expecting any surprises but we’re sure we’ll get the usual language about the Fed being ‘data-dependent’.”
Although the Fed has, in recent statements, alluded to keeping an eye on global developments when considering monetary policy, it is likely the central bank will be paying far more attention to recent domestic economic data that suggests the US may avoid a recession.
“Last month’s jobs number was strong and that may embolden the Fed but, either way, PFM Trading won’t be altering its view that the Fed will be easing monetary policy again by the end of the year,” said Gold.
About PFM Trading, Inc.:
PFM Trading, Inc. is an independent investment and wealth management practice based in China, and staffed by consummate professionals with a verifiable track record of success in the global financial markets. As at 1 January 2013, PFM Trading managed over $3.5 billion of assets on behalf of esteemed clients around the world.
Here at PFM Trading, we enjoy an enviable reputation within the wealth management community. To others, the phrases “unique approach” and “due diligence” represent no more than marketing-speak but to us, they are a code: a code that is indelibly inscribed upon every part of our organization.
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