29th August 2017
Bankers Gather at Jackson Hole
The US President continues to rile up the public with threats of shutting down the government if he doesn’t get his own way, and accusing the media of dividing the country in the wake of the violence in Charlottesville last week.
Investors appear to have grown used to Trump’s overactive and unpredictable mouth and seem to be focusing on the real risks including discussions over the debt ceiling. If Congress fail to agree to raise the cap on how much the government can borrow the US would be unable to borrow more money to pay its bills, which could lead to a credit rating downgrade for the US.
In the run up to the central bankers annual conference at Jackson Hole where Janet Yellen and Mario Draghi will be speaking, European stocks advanced and the euro and dollar held steady. Investors aren’t anticipating new information from the central banks but believe Draghi and Yellen could offer some clarity on the timing of reductions in stimulus. Meanwhile, the Bank of England’s decision to hold rates at record low levels have been vindicated as UK growth struggles.
Read last weeks Market Commentary below.