Green light for a December Fed rate hike?; China rate cut likely next year

Has the Fed got the all clear? What are the situations concerning Greece and Portugal? Will China cut interest rates? – These questions were answered by Marcus Ashworth, Head of Fixed Income for Haitong Securities, when he joined Nick Batsford on the Tip TV Finance Show.

US data needs to continue for a Fed hike

Ashworth noted that the Fed may have the green light they needed following the notable uplift in US data recently, including the incredible non-farm payroll number. However, he commented that we need to be careful that we don’t get ahead of ourselves, highlighting that wage growth was not great and the growth in the NFP’s came from the over 55 age range. Ashworth added that the stream of US data needs to continue to be positive, with retail sales and PPI on Friday, as well as two CPI numbers and another non-farm payroll figure to be released before the FOMC meeting in December.

Greece delayed, reforms in Portugal

Ashworth outlined that Greece are 3 weeks behind on their schedule, and will not be receiving money as early as they would like. In terms of Portugal, he believed that Portugal may see the government voted out, with a new socialist leader taking the reins. Ashworth noted that some policies may include: lifting restrictions on the minimum wage, a 35 hour working week and halting some privatisation projects. Yet, he expressed that the bond market isn’t collapsing.

China interest rates at zero?

Ashworth finished on China, and he concluded that another interest rate cut is likely next year, with rates as low as zero being possible.

Share: Analysis feed

We are not authorised by the Financial Conduct Authority of England and Wales. The information and/or data on this website is provided by us and any data providers which may be used by us for your general information and use only and is not intended for trading purposes or to address your particular financial or other requirements. In particular, the information and/or data on the website:

(1) does not constitute any form of advice (financial, investment, tax, medical, legal, spread -betting or otherwise); and (2) does not constitute any inducement, invitation or recommendation relating to any of the products listed or referred to; and (3) is not intended to be relied upon by you in making (or refraining to make) any specific investment, placing any bet or making any other decision; and (4) has not been issued or approved by Tip TV for the purposes of section 21 of the Financial Services and Markets Act 2000 (as amended from time to time).

Opinions expressed by speakers in the videos, writers of the blogs are only opinions and not expert advice. These opinions do not necessarily agree with those held by Tip TV, its directors, agents or employees who disclaim any intent to make betting, securities or securities markets recommendations. The value of investments and the income derived from them may fall as well as rise. APPROPRIATE EXPERT INDEPENDENT ADVICE SHOULD BE OBTAINED BEFORE MAKING ANY INVESTMENT, PLACING ANY BET OR MAKING ANY OTHER DECISIONS.