First Abu Dhabi Bank (FAB)’s Post

Plunging Treasury yields highlight market unease ahead of the jobs report, with fiscal deficits adding to the uncertainty. Chief Investment Officer Eric Sterner, CFA, CAIA, CIPM, FRM advises that these factors could cap further yield declines as the presidential election approaches. Read more from Vivien Lou Chen in MarketWatch: https://loom.ly/3C4JLZM #Treasury #yields #markets #jobsreport #presidentialelection

Most exit polls point to continuity of regime. While markets have been positive and are positioned for such an outcome, there may be some more steam left in the market as: 1) FIIs shorts on Nifty futures are at a record level and will need to cover the same quickly 2) Institutions may have some dry powder kept aside for a post-verdict allocation 3) Many businesses and corporates would be waiting to see election results for policy continuity - will now start announcing future growth plans - creating positive headlines and “feel-good” 4) PM has indicated that the first 100 days will be agenda-heavy and major policy announcements could be made. This will keep markets in “anticipation” mode and positive

Last week was the best the markets had seen year to date, but it was after some volatility the week before. We expect this volatility to continue at points throughout the rest of the year due to factors like interest rate cuts and the U.S. election A reminder that investing is a long-term plan for most of our clients! #financialliteracy #investing

Last week was the best the markets had seen year to date, but it was after some volatility the week before. We expect this volatility to continue at points throughout the rest of the year due to factors like interest rate cuts and the U.S. election A reminder that investing is a long-term plan for most of our clients! #financialliteracy #investing

Fed Policy: in pursuit of transparency here is one of my models of the Fed reaction function. My estimate of NAIRU is 4% and the neutral real rate is 1.1% which implies a policy rate of 4% which points out that the current policy stance is too tight. If one estimates that the neutral rate is .50%-a reasonable estimate-then the implied policy stance is 3.4%.

The key tweak in our opinion that potentially tees up a rate cut was, "the Committee is attentive to the risks to both sides of its dual mandate" - i.e., inflation and employment - rather than "the Committee remains highly attentive to inflation risks." Read more on this and other great information in our August issue of On Point Investment Strategy Statement. https://lnkd.in/eBCEk5Dh

There are some potentially noteworthy themes within the landscape of the global economy in 2024, with reports of declining inflation, lower interest rates and pivotal elections. Elevate your preparations for 2024 with our complimentary FX health check. Our experts leverage historical financial data to evaluate potential cost savings in your foreign exchange transactions. Additionally, discover how our payment solution tools can optimise and streamline your existing payroll infrastructure. It's a complimentary service, and there's no obligation to take out an account with us. Explore more details and schedule a callback today: https://lnkd.in/d4Za_Ag6 #fx #globaleconomy #globalbusiness

Finance Directors have felt the effects of a tumultuous market over the last year. Currency swings can profoundly impact financial performance, and the stress felt by finance leaders is on the increase – by a mile. For the full report, click below. https://lnkd.in/emvik7Cw #finance #business #economy 

Happy New Year! A quick 2 min read incorporating the latest UK inflation data.

Is the U.S. market prepared to settle securities in one day? Our analysis shows a third of trades may face issues. Learn more about how investors should be preparing, as well as the potential impact of settlement failures, in our latest Alta report. https://ow.ly/cowS50QsuUb