There is no leverage issue in the country. Banks, companies, households, all are in pretty great shape. I would assume there is not much of a political/social negative surprise over there.
The RBA and Federal Reserve are lifting rates in “inclement weather” and will be forced to unwind within a year, says Viktor Shvets, Macquarie’s deep thinking global strategist.
Brainard has been pushing the Fed to consider exposure to climate change in its regulation and analysis of banks. That’s sparked fury from Republican senators – and even a Nobel Prize winner.
Will dollar extend gains?
Further strength in the greenback is possible this week
The Dollar Index continued to trade weak almost all through last week. The index fell to a low of 90.42 but made a sharp recovery in the US session on Friday. Euro rose above 1.21 after the US Federal Reserve meeting on Wednesday. However, it failed to sustain higher and tumbled below 1.21 on Friday to close on a weak note at 1.2021. The US Federal Reserve meeting last week became largely a non-event as the central bank made no change in its stance.
Fed on hold
As expected, the US Federal Reserve last week left the market with no surprise. The Fed kept the interest rates and its stimulus programme unchanged. The US Federal Fund rate is currently at 0 -0.25 per cent. The central bank also reiterated to support the economy with the stimulus as long as needed. Currently the Fed’s stimulus asset purchase is of the quantum of $120 billion per month. The outcome of the Fed meeting had no impact on equit