World Week Ahead: Yellen testifies on outlook 14 Nov 2016
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
Monday 14 November 2016 06:52 AM
World Week Ahead: Yellen testifies on outlook
By Margreet Dietz
Nov. 14 (BusinessDesk) - As investors watch and digest the implications of Donald Trump’s upset victory in the US presidential elections, US Federal Reserve Chair Janet Yellen is set to testify on the country’s economic outlook before Congress on Thursday.
Last week, the Dow Jones Industrial Average jumped 5.4 percent, the Standard & Poor’s 500 Index rallied 3.8 percent as did the Nasdaq Composite Index, as investors piled into stocks that were seen benefitting from a Trump presidency, notably in the health, financial and infrastructure industries.
"Wall Street is going to be watching a lot of [Trump’s] appointments and policy announcements to see whether it validates the more optimistic tone we've seen in the markets in the past few days," Alan Gayle, senior investment strategist and director of asset allocation at RidgeWorth Investments in Atlanta, Georgia, told Reuters.
Some bet that bank stocks will rally, both as a result rising interest rates and policy changes, particularly the Dodd-Frank act that overhauled the industry’s regulation after the 2008 financial crisis.
"Of course, no one yet knows exactly what policy changes will occur and exactly how much they will help profits, but I think the benefit might be solid enough that I am maintaining my overweight holdings in the sector,” Ed Keon, managing director and portfolio manager of QMA, a multi-asset manager owned by Prudential Financial, told Reuters.
On Friday, the Dow added 0.2 percent, while the Nasdaq gained 0.5 percent. The S&P 500 fell 0.1 percent.
The implications of the US presidential vote are “most significant in the emerging markets, which are a dangerous place to be not only in the coming weeks, but probably also the coming months,” Witold Bahrke, a macro strategist at Nordea Investment Funds in Luxembourg, told Bloomberg told Bloomberg.
“Partly because of the protectionism tendency in the US policy from now, but also because of the significant rise in the [US] dollar, we might have focused too much on the pro-growth outcome of this election, and not enough on the flip side of the coin — much tighter financial conditions primarily driven by the [US] dollar,” Bahrke noted.
Last Friday, Fed Vice Chairman Stanley Fischer said “the case for removing accommodation gradually is quite strong.”
The central bank is widely expected to hike interest rates at its December policy meeting.
"In my view, the Fed appears reasonably close to achieving both the inflation and employment components of its mandate," Fischer said in prepared remarks for the Central Bank of Chile, Santiago. Aside from Yellen, the slew of Fed officials scheduled to speak publicly this week also include Robert Kaplan, Jeffrey Lacker, and John Williams, today; Eric Rosengren and Stanley Fischer, on Tuesday; James Bullard, Neel Kashkari, and Patrick Harder, on Wednesday; William Dudley and Charles Evans, on Thursday; and Esther George, as well as Bullard and Kaplan again, on Friday.
The latest US economic reports due for release in the coming days include retail sales, Empire State manufacturing survey, import and export prices, and business inventories, due Tuesday; producer price index, industrial production, Atlanta Fed business inflation expectations, and the housing market index, due Wednesday; consumer price index, housing starts, weekly jobless claims, and the Philadelphia Fed business outlook survey, due Thursday; and leading indicators, as well as the Kansas City Fed manufacturing index, due Friday.
A flurry of US retailers reporting their latest quarterly earnings in the coming days includes Home Depot on Tuesday, Target and Lowe's on Wednesday and Wal-Mart on Thursday.
In Europe, the Stoxx 600 Index fell 0.4 percent on Friday, tempering its advance for the week to 2.7 percent.
Investors will also eye Bank of England Governor Mark Carney who is set to testify before members of Parliament on Tuesday.
(BusinessDesk)
ends
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more