Monday, March 14, 16
08:45 ET Update: [Stockboardasset] S&P futures -30bps
08:45 ET Update: [Stockboardasset] Nikkei +30bps
08:45ET Update: [Stockboardasset]FTSE100 -11bps DAX +74bps
All eyes are on the BOJ and FOMC this week as central bank decisions could dictate trajectories of global markets in an intermediate term. Last month, central banks converged at the G20 to voice major headwinds affecting the global economy. An executive summary states that the global recovery weakened further, along with financial turbulence and falling risk assets was the theme in early 2016. Over the course of the recovery, central banks have cut rates 619 times, excessive monetary policy, and have produced a debt issue stagnating global growth. This comes at a time where the BIS and IMF are issuing warnings about QE and NIRP. The US is in tightening cycle as the FED talked up the USD for nearly a year before implementing /FF tick up in Dec’15. Due to USD demand, a heavy weight was put on commodity prices, and EM FX. The FED will be speaking March 16th as the market does not expect a rate hike. Recent global equity rebound, stabilizing commodities, and inflation stabilizing, we expect an eager FED sooner rather than later to hike.