Afternoon comment courtesy of Spreadex

1 mins. to read
Bank of England Governor Mark Carney caused a strengthening of the pound this morning after investors latched onto his comments to the Yorkshire Post.  Governor Carney spoke out against the prospect of further quantitative easing citing the recent strengthening of the recovery and the positive economic signals as the reason.   The UK markets witnessed a flight to quality in the morning with UK Gilts rising 0.13 and the FTSE 100 down 50.  This is despite further positive economic signs for the UK economy with productivity levels rising in the UK by 0.5% something that has happened since 2011.
With the US senate voting today on its spending bill in an attempt to avoid a shutdown of the US government Moody’s Analytics today came out with a forecast for the effect a government shutdown would have on growth.  Their estimate of a 1.4% difference is being reflected in US futures with the S&P looking to have its first down week since August.  This could be exacerbated by FOMC members speaking later this afternoon.
Further news on the Syrian crisis, the UN Security Council finally agreed on a resolution today legally requiring Syria to hand over its chemical weapons, punishment for failing to comply however was not decided and would require a further resolution should it occur.  This resolution further highlights President Obama’s recent struggles. Failing to obtain senate approval for military action, pushing for a stronger response by the UN and now faced with the prospect of a government shutdown, it has been a tough couple of months for the President.  


Comments (0)

Comments are closed.