The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Well done mate..
More stimulus now looks inevitable and the Bank of England will re-start its asset purchase programme with the announcement of a £50 billion cash injection, Morgan Stanley believes. The investment bank said an extension of its quantitative easing (QE) programme is now its base scenario, and expects Bank governor Mervyn King to make an announcement following Thursday's meeting of rate setters. 'We also think there is an increased risk of a rate cut, although it's not our central case,' said Morgan Stanley's Melanie Baker, part of the bank's Europe research team. Any cut would see UK rates fall even closer to 0%, from their current record low of 0.5%. Following on from the weak manufacturing numbers issued on Friday, it appears there may be significant downside risk to the services sector, which reports on the same day as the Bank of England (BOE) gives its decision on QE and rates. Globally, the news flow has also been worrying, the bank pointed out, with non-farm payroll data from the US revealing that just 69,000 jobs had been added. Morgan Stanley said the MPC has already come close to doing more to help shore up the economy. 'The BOE May Inflation Report already left wiggle room for more QE,' Baker said. 'Before Friday's data we already put the probability of QE at 45%.
That is another good shout. I am selling half here and letting the rest ride. GL mate
Very true.. I am slighty worried about a correction here though and also that tomorrow the Bank of England quashes rumors on more QE.
It’s a really hard decision.. I am up plenty but know it can disappear very quickly. If I sell now I basically get free shares in Kinross and Barrick.. I am just worried about RRS being in Mali and its still a bit tricky there.. I reckon I am out for now.
No I actually decided to diversify and bought Kinross Gold as well as Barrick Gold. Both NYSE stocks. I'm thinking of taking some profit soon..
Wow you beauty.
Gold rises as investors await ECB action. (Reuters) - Gold firmed on Wednesday, rising in tandem with the euro and risky assets ahead of a European Central Bank policy meeting as investors watch for more action from policymakers to contain the euro zone debt crisis. The ECB is expected to indicate a readiness to cut interest rates as soon as next month but hold back from policy moves, after a Group of Seven emergency conference call on Tuesday failed to produce any concrete solution. Gold has held steady above $1,600 an ounce since it rallied 4.3 percent last Friday, as investors expect further monetary easing from the central banks, especially the U.S. Federal Reserve, after data showed a surprisingly weak job market. The next focal point of the markets will be testimony by Fed Chairman Ben Bernanke before a congressional committee on Thursday, which is expected to shed light on the Fed's view of the economy and possible policy moves. "If Bernanke gives some hint on a third round of quantitative easing, we'll be likely to see gold march towards $1,650 or higher," said Ronald Leung, a dealer at Lee Cheong Gold Dealers in Hong Kong. On the chart, gold appeared to have met some resistance around $1,628, the 38.2 percent Fibonacci retracement level on the fall from this year's peak at $1,790.3 to a low at $1,527. Spot gold gained half a percent to $1,625.34 an ounce by 0314 GMT. The U.S. gold futures contract for August delivery rose 0.6 percent to $1,627.20. As if to underline the dangers in the single currency bloc, Moody's cut the credit ratings of several banks in Germany -- the bloc's strongest economy, citing a greater risk of further shocks from the region's debt crisis. But the euro shook off the downgrade and edged higher against the dollar ahead of the ECB meeting. Spot silver climbed 1 percent to $28.79 an ounce, extending gains from the previous session. "Technically, silver has tried to break $27 several times in the past few weeks and failed," said a Shanghai-based trader, "Similarly, it has made a couple of attempts to breach above $29 unsuccessfully." "If silver is able to gain a steady footing above $29, things will look a lot better." Spot palladium inched up 0.2 percent to $620.88 an ounce, off a one-month high of $623.25 hit in the previous session. http://www.moneycontrol.com/news/wire-news/gold-rises-as-investors-await-ecb-action_714031.html
I was watching Bloomberg this morning and they were discussing FTSE Futures being up when they thought they would be 140 points down. This upward movement is in anticpation of the ECB update at 12:45 today. GL chaps!
its good to be wrong! Just hope its not opposite to what I initially thought. OK so big days for RRS in June are: Tomorrow for Bank of England.. 20 th June for the FED and possible QE3. It is an election year in the states which may force them to push through QE3.
I will tell you my reasoning but I am in no way an expert so please don't make decisions based on my advice. RRS had a very strong day on Friday due to the jobs data out of the US. Now most traders would not like to be in a share over the weekend, never mind one with 2 days. Reason being is that it gives too much time for adverse news etc to happen. ( And they wouldn't be able to do anything about it). If you look at the last trades there are some heavy sells and its natural for a pull-back as traders take profit. The US dollar has also strengthened against the Euro over the last 2 days. However I feel that the Fed will have to act and QE3 will be on its way, these rumblings will give the boost to Gold, decline the dollar and therefore increase interest back into RRS. I hope I have answered your question.
Quantitative Easing (QE-3) is Coming, USD to Crash Japan hit a 28-yr low on its broader Topix index of shares Monday, and the Key DJIA in the US went into negative territory for Y 2012 again Monday, it will be no surprise to hear loud calls for more quantitative easing measures to rescue the flagging US economy. Some of the comments that are in the Air now; 1. Dennis Gartman says that quantitative easing (QE-3) is all but assured. 2. Jan Hatzias of Goldman Sachs is aboard the QE3 wagon, predicting that the US Fed will expand its balance sheet. 3. Morgan Stanley notes an 80% chance of further easing, as soon as the June FOMC meeting for up to $475-B. 4. A new CNBC survey polled 60 money managers, strategists, and economists after the dismal jobs report on Friday and 58% say that QE-3 is coming, just 33% predicting more easing 6 weeks ago. Somewhere in here, the US and global economies are going to have to grow on their own without such strong support and infusion from governments. But, that point is not here yet. Maybe you could argue that this is an election year and that this will drive the chances higher for more easing measures. Either way, it seems that the markets believe in on the notion that large government contributions has to be maintained to support the markets and the economy. http://www.livetradingnews.com/quantitative-easing-qe-3-alive-and-well-75470.htm#.T84_mbBfEuc
I've noticed that before.. Its just the LSE website that has the wrong name, correct ticker. No biggy. Tomorrow should see a 2-4% drop with a nice recovery later in the day.
Wall Street boosts hopes of third round of quantitative easing. - 33% Chance New York/Washington A much weaker-than-expected US labour market alongside escalating financial turmoil in Europe raised Wall Street’s expectations the Federal Reserve will intervene to protect the fragile US economic recovery, according to a Reuters poll. The median of forecasts from 15 primary dealers — the large financial institutions that do business directly with the Fed — showed a 50 per cent chance the central bank would eventually launch another round of quantitative easing, known as QE3. A similar poll done on May 4 resulted in the median of forecasts from 14 primary dealers giving a 33 per cent chance of the Fed eventually undertaking QE3. http://gulfnews.com/business/economy/wall-street-boosts-hopes-of-third-round-of-quantitative-easing-1.1031661
U.S Markets Crash on Jobs Data; Quantitative Easing Back in Focus. There was little to inspire investors on Friday with sentiment barometers suffering deep losses across the board with the latest jobs U.S report front row and centre. U.S non-farm payrolls rose by 69,000 in May against economist’s estimates of 150,000 new positions led by a significant short-fall in private payrolls. To add insult to injury April’s originally reported figure of 115,000 was revised down to 77,000 and the official unemployment rate edged up from 8.1 to 8.2 percent. The underemployment rate edged higher from 14.5 to 14.8 percent, suggesting more American citizens are employed, but not to their desired capacity with casual or part-time workers unable to find permanent or full-time positions. The DOW Jones and S&P500 fell 2.22 and 2.46 percent respectively. The Institute of Supply Management manufacturing index also fell short of estimates with the gauge falling to an index level of 53.5 from a previous 54.8. Analysts had anticipated a fall to 53.8. Volatility was the key theme across currencies on Friday with significant U.S dollar strength noted against major counterparts in the ensuing period of the jobs data; however gains were unwound throughout the session as market participants began to recalibrate quantitative easing expectations. Testament to the decidedly risk-off environment, U.S 10-year treasury yields dropped to an all time low of 1.437 percent while across the Atlantic the safety of German debt saw milestone lows with 2-year yields dropping below zero with similar activity noted across the channel. Quite simply, investors are willing to forgo return on capital investment in exchange for a safe place to park funds http://www.fxstreet.com/fundamental/analysis-reports/fundamental-fx-commentary/2012/06/03/
I said today would be a big day for us! Well done bud.. Have a good long weekned if your in the UK.
Lets hope the pull back isnt too harsh.. I think the new trading range for RRS will be £55 - £60 over June /July. Still holding for +£60
I couldn't agree more. The current QE in the US runs out soon so they may go for another Tranche in the next few months. Goldman Sachs also came out and predicted $1950 for Gold by the end of the year. Gold is always good to have in your portfolio but with these oversold RRS shares I reckon they are a better bet.
$1600 for gold
Had just hit $1580 and rising.