A range of drivers contributing to uncertainty and volatility in markets - ANZ
Analysts at ANZ Bank New Zealand Limited explained that a range of drivers contributed to uncertainty and volatility in markets overnight.
Key Quotes:
"Italy’s fiscal woes continue to worry investors, although we continue to be of the view that an accord with the EU will be reached, with the Italian Government expected to submit a draft budget to the EU Commission next week.
The recent surge in US bond yields is weighing on equities, with the Fed talking tough on interest rate rises and markets digesting how far US interest rates may rise. Meanwhile, negative sentiment towards Chinese markets is taking a toll. Stock markets slumped yesterday despite recent easing in the RRR by the PBoC, and the renminbi weakened.
This comes in the midst of recent negative data and continuing tensions between the US and China, with the US Treasury noting concerns about the depreciation in the renminbi overnight. Meanwhile, Brexit sentiment continues to yoyo. It does look as if the UK and EU may be inching closer to the framework of a deal, but Northern Ireland remains a major stumbling block."
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
