Chief Markets Correspondent, London
Jamie's Feed
Sep 1, 2015

Central banks to dump $1.5 trillion FX reserves by end-2016 -Deutsche

LONDON, Sept 1 (Reuters) – Central banks will sell $1.5
trillion foreign exchange reserves by the end of next year as
they try to counter capital outflows stemming from slowing
growth in China, low oil prices and an impending rise in U.S.
interest rates, Deutsche Bank said on Tuesday.

This would mark a major shift in global capital flows,
ending two decades of reserve accumulation by emerging markets
and potentially forcing the Federal Reserve into slowing down
the unwinding of its “quantitative easing” crisis-fighting
stimulus.

Aug 28, 2015

Brace for QT, quantitative tightening, as China leads FX reserves purge

LONDON, Aug 28 (Reuters) – After six years of QE, prepare
for QT.

Faith in the power of “quantitative easing” has prompted
central banks, led by the U.S. Federal Reserve, to pump
trillions of dollars of stimulus into the global financial
system to cushion the impact of the 2007-08 market crisis and
recession.

This supply of liquidity continues to flow. The European
Central Bank has taken the baton from the Fed and is leading the
way with its 1 trillion euro ($1.1 trillion) bond-buying
programme that will run through September next year. The Bank of
Japan is also buying large quantities of bonds.

Aug 28, 2015

Investors pull record $29.5 billion from equity funds in China-driven rout

LONDON (Reuters) – Investors pulled a record amount of money out of global equity funds in the week to Aug. 26, according to Bank of America Merrill Lynch, a measure of the alarm that China’s markets and economy have aroused around the world.

The $29.5 billion outflow, including $19 billion in just one day, was the largest since the series began in 2002, surpassing any weekly outflow engendered by the collapse of Lehman Brothers in 2008.

Aug 28, 2015

Investors pull record $29.5 billion from equity funds in China-driven rout: BAML

LONDON (Reuters) – Investors pulled a record amount of money out of global equity funds in the week to Aug. 26, according to Bank of America Merrill Lynch, a measure of the alarm that China’s markets and economy have aroused around the world.

The $29.5 billion outflow, including $19 billion in just one day, was the largest since the series began in 2002, surpassing any weekly outflow engendered by the collapse of Lehman Brothers in 2008.

Aug 27, 2015

Global stocks fly after Fed official cools Sept rate hike talk

LONDON (Reuters) – Stocks rose around the world on Thursday, following the biggest gains on Wall Street in four years, after a U.S. Federal Reserve policymaker said the case for an interest rate increase next month “seems less compelling” than it was a few weeks ago.

Increased appetite for risk also lifted crude oil prices further from last week’s lows. The price of government bonds and the Japanese yen fell.

Aug 27, 2015

Stocks fly after Fed official cools September rate hike talk

LONDON (Reuters) – Stocks rose around the world on Thursday, following the biggest gains on Wall Street in four years, after a U.S. Federal Reserve policymaker said the case for an interest rate increase next month “seems less compelling” than it was a few weeks ago.

Increased appetite for risk also lifted crude oil prices further from last week’s lows. The price of government bonds and the Japanese yen fell.

Aug 24, 2015

Sterling slumps vs euro as global stock rout dents BoE view

LONDON, Aug 24 (Reuters) – Sterling hit a one-month low
against a basket of currencies on Monday and suffered its most
volatile day against the euro for six years after a plunge in
global stocks cooled expectations that the Bank of England will
lift interest rates any time soon.

An 8.5-percent slide in Chinese shares sparked a
global sell-off, with the Dow Jones Industrials plunging
as much as 1,000 points and Britain’s FTSE 100 down as
much as 6 percent, among its biggest one-day falls on record.

Aug 24, 2015

Sterling slides as stocks rout cools BoE rate hike expectations

LONDON (Reuters) – Sterling fell to a two-week low against a basket of currencies on Monday as investors interpreted the steep fall in global stock markets as a signal the Bank of England will refrain from raising interest rates any time soon.

The pound was weakest against the euro, which was up 1 percent on the day and up 4 percent over the last four days, its biggest rally against sterling in over five years.

Aug 21, 2015

“QExhaustion” hits stocks as fears trump stimulus

LONDON, Aug 21 (Reuters) – Stock markets are slipping the
leash from central banks.

After six-year-long bull market sustained by lashings of
central bank money, August is shaping up to be the weakest month
for global equities since May 2012 – despite a ramp-up in bets
that interest rates will stay lower for even longer.

Aug 20, 2015

Growth fears hit world stocks, oil, emerging markets

LONDON (Reuters) – World stocks, oil and emerging market currencies fell on Thursday as fading expectations for an imminent U.S. interest rate hike following Federal Reserve meeting minutes stoked anxiety about the health of the global economy.

Shares in Asia hit a two-year low, German stocks extended losses in what is shaping up to be their worst month in over three years, and British stocks hit their lowest since January.