Daily News Basket – March 3, 2017

US Fed indicates likely interest rate rise soon

MARSAL COMMENTS: The Fed (US Central Bank) is making noises that it may raise interest in its meeting scheduled for March 15th. The US market has been expecting this for some time and did not react too badly, but remained flat and choppy (Friday March 3, 2017). While world markets declined slightly. The Question is, will the Fed actually go ahead and raise interest despite the not too promising economic data released in the past few days? Or does it need to boost the weakening Dollar lest it lose its brilliance and trigger a domino effect? Also, it will need to finance Trump’s very ambitious “Rebuilding of America” plan. However, The US market has risen too much and too fast since Trump’s election, without real justification. It could be ready for a correction.

READ ORIGINAL: Stocks hold flat after Janet Yellen puts March rate hike on the table 

China flexes it muscles when it is unhappy

MARSAL COMMENTS: China is unhappy with South Korea’s acceptance to deploy THAAD missiles. Although they are theoretically deployed against the North Korean threat, it is not a secret that their real purpose is to pressure and if necessary target China, and Russia.
Suddenly, Chinese media was flaring with anti-Korean propaganda calling the boycott of Korean goods (China is a major buyer of Korean products). Demonstrations and protests followed and even vandalized a Hyundai car showroom in Beijing! Yesterday, the South Korean stock market fell as a reaction to the potential boycott.
Well, if you insist on playing rough with the big boys, be prepared for some bruising, or at least, a bloody nose. Also, all this noise is for the US to hear.
EFFECT PERIOD: (Medium Term)

READ ORIGINAL: China is showing off its trade-war strategy


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