Major banks have formally told clients to expect volatile currency markets in the aftermath of Tuesday’s U.S. presidential election, with the gap between buying and selling prices that determines the cost of trading expected to widen sharply if Donald Trump were to win.
The warnings issued by the electronic trading platforms run by the market’s largest player Citi and rivals Barclays and Goldman Sachs, seen by clients of the banks, have over the past two years become standard ‘red flags’ ahead of big political and economic set-pieces.
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Time For Truth: (Daily Mail) – Banks warn clients to brace for FX volatility after U.S. vote
Are Central Bankers delusional?
Over the weekend, Benoît Cœuré, Member of the Executive Board of the ECB, penned a piece defending the ECB’s policies from the criticism that NIRP hurts savers.
Financial leaders from the Group of 20 nations said on Friday they were heartened by a recent recovery in financial markets, but warned that global growth was “modest and uneven” and threatened by weakness in commodities-based economies.
In a communique issued after their meeting in Washington, G20 finance ministers and central bank governors repeated their pledge to refrain from competitive currency devaluations, but offered no new initiatives to keep growth from stalling.
Chinese stocks rebounded from the brink of a bear market in a late-day swing as the lowest valuations in four months lured bargain hunters and a group of smaller companies pledged to support their share prices.
The Shanghai Composite Index gained 2 percent to 3,007.65 at the close, reversing a loss of as much as 2.8 percent and sending a gauge of volatility to the highest levels since September. The ChiNext small-caps index surged the most in two months after 28 listed companies vowed to take action to stabilize the market, with some pledging not to sell shares over the next six months. State funds may have entered to buy stocks after the Shanghai index fell below the lowest levels reached in last year’s rout, according to Galaxy Securities Co.
Many Wall Street strategists are dusting off their 2015 targets for the S&P 500 index and trimming them for 2016.
Crashing-oil prices and fears of a global recession threw cold water on the index’s performance in 2015, causing it to fall short of the average expected gain of about 10%. With a handful of trading days left in the year and the S&P 500 SPX, -0.94% closing at 2,061 on Thursday (for a 0.1% gain year to date), only a handful of the more bearish analysts can hope to meet their 2015 targets — and only if a Santa Claus rally plays out.