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- September has a number of concerns about the markets
September has a number of concerns about the markets
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Loading...The S&P 500 Index limps into September after stalling amid heightened tensions on the Korean peninsula and historic flooding in Texas. Those broke a stretch of calm that’ll be hard to replicate in a month loaded with major events that could set the tone on financial markets the rest of the year from a dozen G-20 central bank decisions to a deadline on the U.S.’s ability to pay its bills and elections in Europe and Oceania.
Multiple meetings of the G-20 central banks
The fate of currency and bond markets will hinge on a slew of central bank policy meetings, with the euro the most likely to get jostled as the European Central Bank decides the timeline for ending its unconventional easing. President Mario Draghi said officials will discuss potential tweaks in autumn and refused comment when asked if that included Thursday’s meeting. They’ll have to contend with a euro that’s now at its highest level in more than two years.
While no Canadian monetary policymaker has spoken publicly since the Bank of Canada delivered its first hike in almost seven years, another surprise could be in the offing at its meeting Wednesday, as CIBC chief economist Avery Shenfeld now expects.
The pound’s got the opposite problem of the euro, and its descent to the lowest since October 2016 in trade-weighted terms surely has got the attention of the Bank of England nine days before it convenes. The problem is, the rollover in U.K. economic data and negative real wage growth has tempered any expectations for a meaningfully hawkish shift.
Wall Street’s already prepping for a doomsday scenario
And U.S. President Donald Trump has complicated the situation by threatening to shut down the government if Congress doesn’t approve funding for a wall along America’s southern border, while Mnuchin has said the relief aid for Hurricane Harvey should be tied to a bill raising the limit.
There is a vote in a number of major economies
Chancellor Angela Merkel’s party is widely expected to win Germany’s Sept. 24 election but will need to form a ruling coalition -- with whom?
Elections in Norway and New Zealand on Sept. 11 and 23, respectively, may see current opposition parties form coalition governments. Any effects stemming from these votes will likely be contained to domestic financial assets.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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