This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
This week Mario Draghi, President of the European Central Bank (ECB) fired a bazooka at the Eurozone economy which led to impressive triple-digit moves for global equity indices. Great news for our clients. Next week could prove to be just as exciting, with statements due from both the Bank of Japan (BoJ) and the US Federal Reserve (Fed). Will they match Super Mario or will they thwart his efforts? With the UK Index up 100pts today can next week see the UK’s flagship index make fresh 2016 highs of 6400 or will it tumble again?
Who are the following: Alan Greenspan, Ben Bernanke, Toshihiko Fukui, Masaaki Shirakawa? The answer from most will be “no idea”. The reason is they are not as prominent as their successors, Janet Yellen of the US Fed and Haruhiko Kuroda, BoJ Governor. Years ago, pre-financial crisis, the average investor would have never heard of these people nor the likes of Jean-Claude Trichet, the previous head of the ECB. Today the likes of Mario Draghi, Yellen and Kuroda are names most investors are common with. This is because they have more power to move both shares and global indices than almost anyone or anything else. As a general rule of thumb if any of these people have a speech planned brace yourself for swings in the markets. Over the last 24 hours, Draghi’s words of wisdom have seen the German Dax move more than 1000pts – that‘s a 10% aggregate move – Wow!
Markets no longer move on company news alone. Central Bank influence is bigger than ever. You thus need an extra pair of eyes and ears to help you make your trading decisions. There are now many different drivers that can cause havoc with your trading from macro news to speeches from members of oil cartel OPEC. To ensure you are not left in the cold our research is created in-house, tailored to the needs of our trading clients so you can get the heads before Kuroda and Yellen potentially light up the markets, allowing you to decide whether you are risk on or risk off.
Sir Francis Bacon once said “Knowledge is Power”. In these conditions he couldn’t have been more correct. As a trader in these markets you need to know what is going on and when things are set to be announced. Without this you are just a sitting duck. Let Accendo Markets help you by signing up to our research trial HERE
John Truong, Senior Trader, 11 Mar
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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