IIFT Daily Note with Peter Brown

US sequester dampens expectations.

Posted by:  |  Time: 7:36 am  |  Topic:
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The automatic sequester on Friday will have an impact on markets this week. As we have said we are entering a period of uncertainty in the markets. US debt discussions and the Italian deadlock will see to that. Markets have lost their simple one way bet scenario that dominated trading so far this year. The S&P is still underpinned by the low interest rate environment but the outlook is less clear. We may have a period of ranging with sharp rallies and selloffs.

Day to day it will be a game of whether the market is Risk On or Risk Off.

Today the Euro is 1.3075   1.3130  S&P is more volatile  1525  1518  and support at 1483  1502  1508

Go with the mood.

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