Financial markets: The Fed is in control! Market Whispers ( german video)

The Fed is directing the financial markets with its massive injection of liquidity (non-QE4 and purchases of short-dated US government bonds). On the US bond markets, the yield curve rises to its highest level in 14 months (good for banks). The yields on longer-dated bonds in particular are rising (bond sell-off). By contrast, the equity markets are benefiting from Fed liquidity and the Federal Reserve’s promise to leave interest rates unchanged for a long time. In addition, there is the belief that the economy is improving again after the supposed trade deal between the US and China. It is not impressed by the consistently weak US economic data today. The Dax, on the other hand, has been “out of shape” for a few days now, lagging well behind the US indices which are rising to new all-time highs today.

Please follow and like us:

Be the first to comment

Leave a Reply

Your email address will not be published.