IIFT Daily Note with Peter Brown

Fed talk dampens equities.

Posted by:  |  Time: 7:45 am  |  Topic:  |  Comments: 1
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Tapering is back on the agenda. Recent comments by Fed members have ignited fears we might taper in December. Equities are failing to reach new highs and that puts pressure on the downside. Year end, funds cashing in also add to worries. I do not think the market will make a big correction ahead of the FOMC in December but this drift may continue. So equities are becoming a sell on rallies. Elsewhere the Euro bounced to the top of it’s recent trading range. I do not see any big moves for the Euro in the short term but if tapering happens it will put the Eurozone at polar opposite to the US. They are coming out of the stimulus process we are just entering. This scenario could lead to a depreciation of the Euro longer term.

Short term trading should be contained to quiet trading days and ranges. Important to buy or sell at value i.e top or bottom of the levels.

They are :- Euro 1.3480  1.3365  S&P (DEC) 1768  1758  Wall St (DFB) 15800 15700

The mood this morning will be key. We are at the low end of Equity ranges. If the market opens and sells through these levels it will be quite negative.

One Comment

Ross

November 13, 2013

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Peter Schiff says no taper. In fact he says fed will increase QE. Will he be proved right or wrong?