Morning Report Thursday 10 September 2015
Well, another wild night on the US markets after impressive upwards moves in stock prices across the Asia Pacific yesterday and then into Europe and early US. Last night the Dow fell 239 points after being up 172 points early in the day and up an impressive 390 points the previous day! Readers will note that while we have been positive our markets we have also been calling for a reasonable degree of choppiness / volatility as the markets attempt to absorb the conflicting world news stories.
Last night the job openings in the US data came in at multi-year highs implying a very strong employment economy in the US - see chart 3. However, a number of large merchant banks are now forecasting that the Fed will not raise rates during this current market volatility, and will wait until 2016. That said, the US 2 year bond yields are at fresh highs since 2011 illustrating a preparedness for higher rates in the US sooner rather than later - see chart 4. All adding to the confusion!
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