2014년 9월 16일 화요일

September 16, 2014

With lack of significant economic indicator, PBOC released a statement that it will extend its stimulus to $81 billion affects the market. Yet risk from FOMC meeting and Scotland's independent voting on Wednesday still effect on the market that investors take a limited movement in the market.

While it is unlikely that Fed will increase the interest rate at this moment, whether it will keep the "considerable time" on the statement rises on the issues. Even though U.S. households income keeps recovering from 2007-09 recession, a report from the Census Bureau shows that overall income is stagnated last year. Yet it is highly unlike to impact on Yellen's decision since recent payroll and unemployment rate in 2014 shows improvement.
As concern of FOMC meeting rises, 10-year treasury yield increases.

What I concern is that market is very volatile on Fed's decision these days. The Fed needs to take more considerable approach to adjust QE and interest rate.

BOE succeeded to maintain its target inflation rate (2%) while it increased interest rate to cool down housing market. Yet house price increased 1% more than forecast, which alarmed BOE whether how its fiscal policy works in the market.

Investors in FTSE are more focused on Scotland's independent news that it did not show a significant movement.
There was significant GBP/USD change in last few days as the issue of independent came out. Even though many investment bailed out from U.K. market, it is interesting that FTSE is stagnated at the same period.

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