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WTI hits new yearly low

Published Friday, August 14th, 2015

was third time lucky for global stock indices after a pledge by the PBOC to keep its currency stable went some way to reversing the prevailing risk-off mood. The Bank of China’s dismissal of the possibility of any further significant weakening of the renminbi offered much needed reassurance to investors. Such claims were given credence overnight when Beijing set its daily peg marginally higher, the first in four days, as it continues to let market forces have greater influence.

Easing fears of a potential currency war saw the spotlight return to the hotly anticipated lift-off in US interest rates which may have taken a step closer yesterday following the release of solid retail sales data. Figures for July matched expectations of +0.6% and pointed to a solid start to 3Q but many saw an upward revision to June’s figures to flat from -0.3% as more telling and bolstered predictions of a rate hike at the Fed’s next policy meeting in September.

Improving US growth prospects were mirrored by the most unlikely of candidates with a preliminary reading of Greek 2Q GDP revealing a +0.8% expansion and defying expectations of a quarter-on-quarter contraction. The initial bewilderment however soon gave way to concerns as investors were reminded that the economy has since been ravaged by capital controls.

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Posted by Stephen Brennock

Stephen Brennock joined PVM in 2013 after having worked as a project manager for a business development firm. He graduated with a degree in Business Management in 2007.