Wednesday, March 9, 2011
Experts: Commodity stabilized interest rates came to be.
<P> Interest rate expectations continued to improve </ P> <P> recently, the generally positive U.S. economic data, economic recovery continues to increase, and the strong intervention of the Fed, Treasury market was basically stable, however, to quantify in the EU .easing the pressure caused by imported inflation, the U.S. inflation on the rise, this rise again, or will prompt the Federal Reserve discount rate, or even pre-start raising interest rates to stabilize prices, then the dollar continues to remain strong, commodity microscopic .the light of day. .</ P> <P> At the same time, China's economy overheating of the early clues, the central bank interest rate expectations continued to improve, for three reasons: First, the high CPI, PPI is the most obvious of the central bank to raise interest rates precursor, and second, quantitative .monetary policy is limited, third, increased inflow of hot money, imported inflation pressure, the Federal Reserve to raise interest rates soon to open a "Pandora's Box", my interest is not without reason. .</ P> <P> visible, at home and abroad is expected to continue to increase interest rates, money market, or will replace the capital market as the main bearer of economic development, and the face of the overhead of the "Damocles" sword of interest rates, capital market .bound to make significant concessions, like short term commodities bottomed out and talk about He Qinan ah! .</ P> <P> bullish market return to fundamentals </ P> <P> In fact, raising interest rates once the dust settles, the market will be relieved panic, the commodity market will return to bullish fundamentals of supply and demand (the former .interest rates several times the effect is very obvious), and the view from the disk, already oversold commodities, especially copper, thread and other industrial products, the product attribute negative financial attributes have been significantly weakened at the same time, I believe that the central bank increases .interest rates, the market will gradually highlight product attributes, of the bull market is expected to regain confidence, reflected in three aspects: </ P> <P> First of all, the domestic central bank to raise interest rates would not be significant. .For four reasons: First, on May 10 the central bank has just raised the deposit reserve ratio; followed by the number of early-type monetary policy has achieved good results; once again the real estate monitoring and control policies such as regulation and control of excess capacity at this time is .value of the critical period; Finally, appreciation of the renminbi is expected to continue to increase, increase hot money inflows, strong pressure of international public opinion. .</ P> <P> I believe that a small interest rate increase will not only make the market fully ease the panic, but also to advance the bearish market is expected to become profitable "anti-return" of the city, goods will be partially compensated for the financial attributes ., jointly with the Commercial Property market to pick up a better picture to emerge. .</ P> <P> Second, the effect of the Forced hedge interest rate expectations. .In the euro, the pound behind the push up the dollar, yen, gold funds are also sought after by the market, I believe that although the high capital risk aversion, but the flows already appears divided, and the Federal Reserve to raise interest rates to stimulate "panic" will be gold, at .element completely out of money on long after the dollar rally was to be slowing down, then, was expected to return home and pick up the commodity market trends. .</ P> <P> again, prices are down on serious interest from the more traditional shopping season of the fundamental support. .Currently, the bulk of goods are not only inverted, but some of the prices of goods and even fell below the cost price, which will drive commodity commodity attribute is gradually emerging, once interest rates, commodity markets will certainly paid off. .</ P> <P> sum up, the panic of funds as interest rate expectations will continue to strengthen and continue to upgrade the current weak trend in commodity futures markets will continue to run, is expected to near the ideal state is the commodity market .low within a narrow range (less likely), the probability of continued sharp decline in larger operations, suggest that investors are still bearish near the main thought, should not buy the dips. .</ P> <P> addition, with the point interest rate increase approaching, commodities commodity attribute is bound to increasingly prominent space will narrow down until the rate hike, "boots" after landing long before funds Admission ., I believe that the domestic central bank to raise interest rates still need some buffer time, is expected in the second quarter, likely the beginning of the third quarter. .</ P>.
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