Author — Martin Young, CEO of Farringdon Asset Management

Global Macro Review

• Gold sets new all-time high level above $2500.

• As US interest rates fall, gold and precious metals are likely to do very well.

• US equity futures were steady after the S&P 500 and Nasdaq 100 both notched gains of more than 1% on Friday.

• The Stoxx Europe 600 index was little changed at market open.

• Lower liquidity was observed as the UK markets are closed for a holiday.

• Bitcoin continues to track gold in anticipation of Fed rate cuts.

• BTC touched 65,000 off the back of fed news and is close to all time high of 73,000.

US Markets

• Stocks paused on Monday as rising tension in the Middle East tempered the bullish sentiment sparked by the prospect of imminent Federal Reserve interest rate cuts.
• Israel and Hezbollah (Lebanon) have been firing missiles at each other and conducting air strikes.
• These actions may worsen the fight as Israel strikes on Hamas leaders in Iran.
• During the annual retreat at Jackson hole, the Fed indicated rate cuts as inflation stays on sustainable path towards the 2% inflation goal.
• However, the Fed has given no guidance on the pace and rate of cut.
• It is likely that the Fed is reacting to disappointing jobs data in July that sent markets into a panic in August.
• The dollar declined on news of rate cut.
• Reduced demand for USD may make it tougher for the US Government to continue financing its record deficits which is approaching 7% of GDP.

Our Key People

Contact Us

Farringdon Capital Ltd is incorporated in the Dubai International Financial Centre (DIFC) under number 4190, and regulated by the Dubai Financial Services Authority (DFSA).

The information contained in this document is for information only and should not be taken as a recommendation to buy or sell. Investors are reminded that past performance is no indication of future performance.