THURSDAY, MAY 14, 2015
Morning Summary: Investors appear uncertain as the U.S. dollar slips to fresh three-month lows on softer than expected U.S. economic data and thoughts it might push back the timing of the Fed’s first rate hike. This has the U.S. stock market higher and the “commodity” bulls stirring.
From a global perspective, Chinese Industrial Production picked up a touch from last month, and for the first time since 2010, all four of the Eurozone’s largest economies (Germany, France, Italy and Spain) recorded some type of economic growth. Also worth noting is the fact the Bank of England cut growth prospects for the next few years, which raises expectations that they will not implement a rate hike until 2016 at the earliest.
For some insiders this becomes even more problematic as it means the U.S. could end up being the only country in the world that raises benchmark interest rates this year. Depending on interpretation this could be digested as either good or bad for the U.S. dollar. As for today, there’s very little economic news on the table, I’ll be keeping my eye on the $16 billion worth of 30-year bonds scheduled to be auctioned off at noon, especially since there’s talk still swirling about a potential “liquidity” problem.
