Monthly Archives: September 2015

Volatility Persists in Equity Markets

Equity markets looked poised to finish the week on a positive note following a press conference from Fed Chair Janet Yellen on Thursday afternoon, where she stated that the central bank is still on course to raise interest rates in 2015. Yellen stated that, “most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter. But if the economy surprises us, our judgements about appropriate monetary policy will change.” Continue reading

Fed Delays Rate Hike

After months of anticipation and many market pundits believing the Fed was ready to raise rates, no action was taken at the Federal Open Market Committee (FOMC) meeting. Rates will remain unchanged at 0 – 0.25%. Fed Chair Janet Yellen, when speaking about the Fed’s decision to delay their hike, noted slowing growth in China, an overall “troubled” global economy, and the fact that inflation is below their target. Regarding China, while the Fed noted that they have “long expected” growth in China to slow, they indicated that recent developments had them ask “whether or not there might be a risk of a more abrupt slowdown than most analysts expect.” Continue reading

Upcoming Fed Meeting Keeps Markets Calm

While the end of summer typically sees lower volume and more muted volatility, we have obviously bypassed that the past few weeks. However, this week was relatively quiet, with markets seeing lower than average volume. Despite the holiday-shortened week, the markets did rise recover some of their earlier losses. With little news (good or bad) coming out of China and Europe, the U.S. markets stayed calm. Continue reading

Volatility Continues This Week

The markets continued to remain volatile this week, as a slowing Chinese economy once again weighed on global equities. On Tuesday, Chinese manufacturing statistics were released and showed a reading of 47.30. As a reminder, readings below 50 indicate contraction. This reading represents the sixth straight month of factory activity contracting. The Chinese government’s devaluation of their currency was supposed to jump-start manufacturing, as goods produced in China will appear cheaper, but there is a lag on when this will begin. Continue reading