Ed Moya – Credit Suisse Concerns, Central Bank Interventions, Inflation, Manufacturing, and Energy
Ed Moya, Senior Market Analyst at OANDA, joins us to review the concerns that arose over the weekend about Credit Suisse and whether that may have a contagion effect on other global financial institutions. This ties into the theme we’ve seen lately where entire the economic health of economies, equities, and bond markets have been under threat and central banks moved to intervene recently in both Japan and Great Britain. Despite all these challenges, Ed believes the threats are still mostly contained, won’t create a domino effect, and won’t stop the coordinated hawkish tightening policies from central banks globally.
With inflation continuing to run hot it continues to be the key driver, but we also reviewed the ISM manufacturing report, and expectations for the upcoming Non Farms Payroll jobs numbers on tap for this week. One other variable that Ed highlighted was that China has been down economically most of this year, but if they get their economy going again and get opened back up that this may help with more export demands from west to east, and fix some of the supply chain bottlenecks in manufacturing.
We wrap up with a look at the energy sector, with Oil bouncing today on the weak US dollar and news from OPEC about supply cuts in the works. Despite the pullback seen in the energy space over the last few months, Ed remains bullish that prices may build back closer to $100 oil as the supply is still very tight.