The Federal Reserve has given fresh impetus to emerging markets.
As Russia joined Argentina in announcing a Eurobond sale, stocks from Istanbul to Johannesburg rallied at least 2 per cent, South Africa’s rand extended its longest winning streak since 2013 and Standard Chartered Plc recommended buying the lira, this quarter’s worst-performing major currency outside of Latin America.
NEW DELHI: It's official now. Dalal Street has entered just the bear market territory. With Wednesday's loss, the domestic market has crashed 20 per cent from its record high of March, 2015, to enter the bear market territory. A 20 per cent crash from the record high, conventionally, represents a bear market. The BSE Sensex has slumped 20.81 per cent since its March, 2015 high of 30,024.74. The broader market barometer, 50-share Nifty50, has plunged 20.71 per cent from its high of 9,119.20 hit in March, 2015.
The banks have had a long run of strong profits but the good times are about to become a little less so, according to Ed Clark, chief executive of Toronto-Dominion Bank.
Europe remains in a shambles, the U.S. still hasn’t recovered, while in Canada strong tailwinds such as the housing market have turned into headwinds. But the real challenge, “the underlying issue” is what’s going to happen to interest rates, Mr. Clark told RBC Capital Markets’ annual bank CEO conference in Toronto on Tuesday.
In early October, when speaking before the NY Fed, Bridgewater's Ray Dalio made a prophetic warning: a 1% rise in yields from near-record low level would trigger "the worst decline in bonds since the 1981 bond market crash." Less than two months later he has been proven right because while we have yet to see a move quite as large as the one Dalio envisioned, the November surge in global yields has already resulted in the worst monthly loss in the Bloomberg Barclays Global Aggrega
The Wall Street Journal this morning echoed many of the questions we've raised over the past several years about the sanctity of global markets. How are equity markets signaling economic strength while bond markets trade at the tightest levels ever? Why do gold prices soar while inflation remains "stubbornly" low? The answer, of course, lies in the Central Banking grand experiment that has distorted almost every corner of global markets.&n
TORONTO — The Canadian dollar drifted lower Wednesday morning amid general U.S. dollar strength.
The loonie was down 0.07 of a cent to 91.27 cents US to levels last seen in September 2009.
The new year is only two weeks old and the loonie has already fallen 3.1%, making it the worst performing primary currency.
The reasons for the decline are many. One is that the greenback has gained in value as the Federal Reserve starts to back away from its massive monthly bond purchases.
The big story in economics is the recent rise in interest rates. In just the past several weeks, as talk has grown about reducing the pace of bond purchases via quantitative easing, yields on the US 10-year have surged past 2.5%. Very recently they were barely above 1.5%.
The U.S. stock market has finally rolled over, after going 3 years without so much as a single 10% decline. We are not quite there yet (at today’s S&P 500 low of 1,837 the index is down 9% from its peak reached last month), but for all practical purposes this is what a correction looks and feels like. So does it matter? Are stocks down to a point where investors should consider adding to their stock holdings? Let me share some thoughts as to how I am viewing the market’s current position.
Canada’s life insurance companies can’t seem to catch a break as stubbornly low interest rates continue to hamper earnings six years after the hard crash of the financial crisis.
The picture seemed to be brightening for lifecos last May, when the U.S. Federal Reserve first began hinting that it would scale back its massive bond buying program — a program that has kept long-term interest rates at record lows. The news led to a temporary spike in bond yields and a flood of investors poured into lifecos looking to capitalize.