Monday, August 18, 2014

Main Points of the day

•     Ukraine tensions cause “risk off” on Friday, but foreign ministers’ meeting should help to reverse that today
–    Reports that Ukraine had attacked a Russian convoy caused “risk off” behavior Friday, although the impact was lessened after Russia said this was “fantasies”
–    Foreign Ministers of Ukraine, Russia, Germany and France met Sunday to discuss a cease-fire; no agreement, but the fact that they met should soothe the markets
–    I expect a return to “risk-on” investment today
•     Carry fell Friday, look for a recovery today
–    TRY, RUB, PLN, ZAR and HUF were hit the most Friday; could recover today
•     Oil rose sharply Friday, now coming off; gold seems weak
•     Today:
–    Eurozone: Trade balance for June
–    US: National Association of Home Builders index
•     This week:  Central Bankers and PMIs
–    Minutes of RBA meeting (Tue), FOMC and BoE (Wed)
–    Fed’s annual Jackson Hole symposium Thu-Sat: focus this year on labor markets

–    Thursday:  Global PMIs coming out

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