Macro Highlights December 7th 2015

Analysis - 07/12/2015

Investors sold the news Should we worry about the decline in Swiss GDP? How will the next Fed Day affect emerging markets?

INVESTORS SOLD THE NEWS

The highly (overly) anticipated monetary support measures promised by the European Central Bank (ECB) deeply disappointed investors around the world on Thursday 3 December when they were finally announced.

 

SHOULD WE WORRY ABOUT THE DECLINE IN SWISS GDP?

Switzerland’s GDP declined ever so slightly (-0.1% QoQ annualised) between July and September. Growth was held back by a contraction in the balance of trade in services, a slowdown in construction spending, and destocking.

 

HOW WILL THE NEXT FED DAY AFFECT EMERGING MARKETS?

May 2013: the Fed’s announcement that it would taper its monthly bond purchases as part of the quantitative easing programme delivered a blow to emerging markets, which shed nearly 20% in just two months. This effect – dubbed the taper tantrum – continues to weigh on emerging markets, which are highly sensitive to international capital flows.

 

 

 

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