Matt Simpson, CFTe, MSTA
CityIndex
A market snapshot of % movers across Bonds, FX, Commodities and Stocks for Q1 2015
Observations:
- Q1 has seen Central Banks the world over reduce interest rates in a 'race to the bottom'
- USD Continues it most bullish rally in decades as the markets anticipate a miniscule rate increase by FED
- Stronger USD has cuased downwards pressure on Commodities, which themselves are within a secular bear market
- Commodities within a secular bear market demonstrates a lack of global growth and signals further interest rate cuts globally
- Gold has remained flat, despite its safe haven status. The fact there are no buyers demonstrates that investors do not foresee global growth any time soon, so do not requre Gold as a hedge against inflation.
- Bond yields continue to decline as investors scamble towards safe havens such as Bonds
- European stocks have advanced with the anticipation (and delivery of) Eurozone QE
- US stocks are seeing volatilty at record highs whilst the markets decipher when FED will raise rates
- WTI remains near multi-year lows as OPEC refused to cut supply which has had a negative effect on Canadian Dollar (and caused BoC to cut interest rates).
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