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Flash: Global equities poised for rebound? – Investec

FXstreet.com (New York) - According to Lee McDarby, Corporate Treasury at Investec, “Yesterday marked the worst day for global markets since the crash in Europe in October 2011, with stocks, metals, emerging and credit markets all witnessing their worst falls in almost 20 months.”

Indeed, the main shift has been brought about by concerns that the Federal Reserve in the US may begin to slow down its bond purchase as early as this year, should the economy continue to show signs of improvement. This possibility was confirmed by Fed chairman Ben Bernanke on Wednesday night and has accelerated the fall in equities we have seen over the last week.

Yesterday saw the biggest single drop in the Dow Jones this year as the index fell 2.3%. On the domestic front the FTSE 100 was down just over 3%. However, “overnight the Nikkei ended up 1.7% so today might be slightly more positive for shareholders in the western world when the markets open.” McDarby adds.

GBP/JPY approaching 50d MA

GBP/JPY remains overall bid, although is losing some ground in the European session on profit taking ahead of the weekend on a quiet calendar with only third tier data, mostly ignored. GBP/USD remains on path towards the 50d MA and should a break be concluded there, the upside will remain very much in tact.
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Flash: US setting the price of debt – Deutsche Bank

According the Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “Much of the world ex-US is still levering (i.e. issuing more debt relative to activity) and hasn't started the de-leveraging process yet.”
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