Another Indicator That’s Signaling Rising Inflation
The Producer Price Index for final demand in January showed an increase of 0.4% month-over-month compared to 0.1% in December 2017.
Markets were gripped with anxiety before the January inflation report was published on February 14.
The British pound (FXB) depreciated by 2.0% against the US dollar (UUP) in the week ended February 9. The pound (GBB) ended the week at 1.38, against its post-Brexit high of 1.44…
What’s behind the Stock Market Fall?
A fall of more than 10% in market value from the most recent peak is generally considered to be a correction. The US indexes have had four such corrections since the onset of the current bull market cycle in 2009.
Stock markets around the world rallied in 2017. Asian equities, in particular, grabbed investors’ attention in 2017, as they have been outperforming other markets.
At the start of 2017, elections in many European countries brought some political uncertainty to the European markets.
EWU Rises as Bank of England Holds Firm on Interest Rates
The Bank of England’s MPC voted to hold interest rates at 0.5%, which strengthened the pound sterling against the euro and dollar. The EWU rose by 0.89%.
The UK market’s reaction to the ECB’s announcement of its asset-buying plan was reflected in the rise of the iShares MSCI United Kingdom ETF (EWU) on Thursday, September 3.
The UK market experienced a stock rally on Thursday, September 3, over a comment of the ECB Chief Mario Draghi regarding the ECB’s plan to fully implement its asset-buying program.
A Look at the Fund Flows in Low-Volatility ETF SPLV
The anticipated views of the Federal Reserve members are expected to make way for utilities (IDU) (VPU) and for low-volatility funds.
Since July 2016, VPU has experienced net outflows of nearly $320 million.
In VPU, the top ten holdings form nearly 50% of the total portfolio. These holdings include NextEra Energy (NEE), Duke Energy (DUK), and Southern Company (SO).
Brazilian Real Nears All-Time Lows in 2015
The Brazilian real has been trading on a weaker note against the US dollar in the last year after depreciating by more than 40% against the US dollar.
The Brazilian real underwent massive depreciation of 1.89% against the US dollar on September 10 after the country’s credit rating went from “investment-grade” to “junk” status the night before.
A strong dollar has had an adverse impact on emerging market currencies. Monetary policy tightening could also lead to an outflow of capital from emerging economies.