25 April 2018
Weekly Insights From The FNArena News Desk 23/04/18
Last week’s disappointing labour market data released by the Australian Bureau of Statistics mark an important new development for calendar 2018, and an additional complication for global financial markets; economies are slowing down, with synchronised momentum having peaked late last year.
While it remains too early to start worrying about the next recession or global bear market for risk assets, slowing economic momentum when the Federal Reserve remains intent on further tightening (“normalising”) US interest rates is not a favourable combination, to put it mildly. This new framework increases the chances for ongoing sharp volatility in markets, if not a much larger draw down in case investor sentiment suffers yet another blow.
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