News this past week
- ECB disappoints markets
- US Fed hike increasingly likely
- US sees continued job growth
- PMI data falling in US and China
- OPEC maintains current output levels
James Klempster, CFA (Momentum Global Investment Management) shares his view:
These days attention is never too far away from the activity of central banks. Mario Draghi, President of the European Central Bank, disappointed the markets last week not because he did nothing, but because he was deemed a little scrooge-like when it came down to adding liquidity to markets. All eyes are now on the US Federal Reserve (Fed) where markets are currently pricing a 76% chance of a rate hike in the US. This is still a reasonable amount of uncertainty given the decision is barely more than a week away. We have remarked before that a lack of inflationary pressure has been something of a gift for central bankers because it has enabled them to continue to prime the pumps to spur economic activity.