Shares Struggle, Yellen Says Goodbye
Shares have broadly weakened. Japan Nikkei dropped -2.2%. Hong Kong HSI fell -1.6%. Australian Dollar and Japanese Yen have both reinforced. Greenback pulled back. Swiss Franc is so far the strongest. Today, Jerome Powell officially takes over as the Fed Chair. Janet Yellen in her final statement said that she was slightly upset for not being appointed for the second term but added that Powell will do a good job. Yellen acknowledged a “much better capitalized financial system” and “stronger banking system”.
Meanwhile, in Europe, Christian Democratic Union and Social Democratic Party didn’t manage to finish talks about forming a coalition in time, as Sunday was set to be the last day. Today’s negotiation will take a lot of time in order to keep up. So far, sides have reached consensus about housing and digital economy. They are yet to discuss restrictions for companies and some health care issues. As of Brexit, Michel Barnier (EU Brexit negotiator), Theresa May (UK prime-minister) and David Davis (Brexit Secretary) are going to have a meeting today.
This week will see some major events, as Reserve Bank of Australia, Reserve Bank of New Zealand and Bank of England are scheduled to have their meetings and some expect a rate hike and Inflation Report from BoE. Additionally, we’ll get British PMI services and productions, US ISM services, Australian retail sales, New Zealand employment; Canadian employment as well as Chinese trade balance and Consumer Price Index.