US Weekly jobless claims and GDP data is due and would have had investors trading cautiously even without the extra level of nerves introduced by the Fed meeting. Jerome Powell’s speech tomorrow is expected to provide details regarding when the central bank may start tapering its bond-buying program. Recent weak economic data and the spread of the coronavirus Delta variant has thrown into doubt the recent market expectation that the Fed will begin cutting back the stimulus before the end of the year.
In Europe, ECB Chief Economist Philip Lane said yesterday that the spread of the coronavirus Delta variant is likely to be limited across the region. He also said that the central bank would only decide when to unwind the current stimulus after their pandemic emergency program expires.
Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’