NEW YORK (Reuters) - Elections in Greece and France over the weekend have ushered in a new period of uncertainty for financial markets that could stand in the way of the easy-money rally that boosted stocks at the start of the year.
NEW YORK: The global market volatility that upended investors over the last six weeks may last deep into autumn now that the Federal Reserve has decided to keep interest rates unchanged, several equity and fixed income portfolio managers said on Thursday. The Fed has not raised interest rates since 2006 and investors are concerned that a further delay will keep markets on edge, as analysts try to interpret how data points ranging from Chinese retail sales to commodity prices will influence the central bank's next move.
LONDON: European shares extended gains on Wednesday after a report that Greece was ready to accept most conditions from its international creditors to clinch a debt deal. The Financial Times, citing a letter Alexis Tsipras sent to the heads of the European Commission, the IMF and the European Central Bank, reported the Greek prime minister will accept all his bailout creditors' conditions that were on the table this weekend, with only a handful of minor changes.
MUMBAI: Global financial markets continued to be roiled by the aftershocks of the UK's decision to exit the European Union late last week. While Asian markets, including India, managed to remain relatively resilient on Monday after the selloff on Friday, currencies could not escape the bear assault with the pound crashing to a 31-year low and China's yuan plunging to the lowest since 2010. Gold, considered a safe-haven asset, remained strong amid the uncertainty. The jitters were felt in the US too, with the Dow Jones index opening 200 points down.
Canadian stocks fluctuated, after a three-day slide, as global markets retreated on rising anxiety the U.K. will vote to exit the European Union. The nation’s gold producers advanced as prices jumped to a one-month high amid the volatility.
The S&P/TSX Composite Index rose 0.1 per cent to 14,052.30 at 10:06 a.m. in Toronto. The index lost 2.3 per cent in the past three sessions. Trading volume today was about 27 per cent above the 30-day average at this time of day.
LONDON: The euro rose on Friday after Greece's parliament gave approval to a new bailout agreement, with relative calm returning to currency markets after a week that saw China devalue the yuan, sending ripples through global financial markets. The euro hit $1.1185, on track for its best weekly gains against the dollar since mid-May, having already got a lift this week as investors unwound euro-funded carry trades in the yuan and other emerging market currencies, which were hit hard by the Chinese devaluation on Tuesday.
Chris Ratcliffe / Stringer / Getty ImagesThe United Kingdom has voted to leave the European Union.
Among the wide-ranging impacts, financial markets are going wild following the monumental vote and Morgan Stanley strategist Andrew Sheets thinks this will be a huge downside for markets.
HONG KONG/SHANGHAI: China shares fell again on Thursday after a report that banks were trying to get to grips with their financial exposure to the stock market slump in June, added to a pall of uncertainty for investors. Concerns about the level of borrowing to fund market positions have been magnified by the grey market - a loosely regulated network of state-owned commercial banks, trust companies, fund managers, and grassroots finance firms.
We suggest ECB President Mario Draghi has his work cut out for him today. As the entirely political catalyst for Greece's crescendo-like bailout capitulation, he will - we hope - be questioned long and hard on his actions over the last 2 weeks (and going forward) with regard the increasingly 3rd world nation. As Bloomberg's Richard Breslow notes, Draghi needs to help calm a still tense situation. The only way he can do this is with as much tranquility as he can muster, make sure everyone knows he is still prepared to do whatever it takes.