Delays of vital economic releases could trigger financial market volatility
Delays of vital economic data releases could trigger financial market volatility if a U.S government shutdown goes ahead this weekend and drags on for weeks, leaving investors to use alternative data sources to determine the economy’s trajectory.
“If the government data releases are suspended, this will increase volatility and decrease visibility, in a time when forecasting is already difficult,” said Clifton Hill, global macro portfolio manager, at Acadian Asset Management. Key government data releases due over the next two weeks include jobless claims, unemployment and inflation, which influence monetary policy.
ING’s chief international economist James Knightley said a shutdown would be economically disruptive and would restrict the flow of data the central bank would need to justify further interest rates hikes, strengthening the case for the Fed to hold interest rates steady in November. Other impacts are on companies looking to go public. NYSE Group President Lynn Martin said a government closure would impede federal regulators from processing filings for initial public offerings and other transactions, potentially impacting investor’s confidence and market performance.Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, said the stock market has fully priced in a government shutdown, but the question remains how long it could last.
Ratings agency Moody’s warned on Monday that a shutdown could harm the U.S.’s credit rating, a stern warning coming one month after Fitch downgraded the U.S. by one notch on the back of a debt ceiling crisis.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
CHEERS AND JEERS: Jeers to further delays to P.E.I.'s first overdose prevention siteHealth Canada gave P.E.I. the approvals for operating a supervised injection site in June 2021 and the project has hit many roadblocks since
Read more »
Global bond investors fear more declines after vicious quarterly selloffSome believe more weakness is in store
Read more »
Analysis-Global bond investors fear more declines after vicious quarterly selloffBy David Randall and Yoruk Bahceli (Reuters) - Fiscal concerns and worries over a prolonged period of elevated interest rates sent government bonds ...
Read more »
Thailand's new PM seeks FTA expansion to lure major foreign investorsBy Panu Wongcha-um and Panarat Thepgumpanat BANGKOK (Reuters) -Thailand's new prime minister said on Friday he was committed to transforming the country ...
Read more »
Why young investors are ripe for financial adviceJennifer Leathem of Nicola Wealth explains how advisors can best attract the next generation of clients – by seeking introductions from existing client families
Read more »
Unrelenting Fed Hikes Are Good News for Asia ESG InvestorsRising interest rates in the US and Europe are forcing environmentally focused investors to rethink a market long-considered a laggard on everything ESG: Asia.
Read more »