Market sentiment has become dominated by speculation around the next moves by central banks across the globe, which have generally implemented easing measures that have propped up stock prices and seen bond yields move lower in recent years. As a result, more recently markets have been watching signs from major central banks on the willingness to remove some of their stimulus measures.
Bets on a US rate increase by December climbed after Fed Bank of Richmond President Jeffrey Lacker urged tighter policy, while his Cleveland counterpart Loretta Mester said the economy is ripe for a hike. We will be keeping a close watch on U.S. economic data for indications as to the timing of a Fed interest-rate increase, with important payrolls employment data to be published at the end of the week. There is also speculation the European Central Bank will wind down bond purchases in steps of 10 billion euros a month, according to euro-zone central-bank officials.The US dollar also...
Stock Markets, Simplified.