Caspar Rock: Monday markets - the week ahead on 16 September
A busy week: the drone attacks on Saudi facilities continue to play out in the oil price and other markets. The Fed meets and is expected to cut rates; and in the UK Boris Johnson negotiates with EU leaders.
- The drone attack on Saudi oil facilities has resulted in Brent jumping 8%. The longer-term impact depends on how long the Saudi outage (50% of production has been halted) will last.
- Last week saw the bond sell-off continue. The ECB reintroduced quantitative easing, and indicated that fiscal policy should lead from now.
- The Fed meets this week with markets anticipating a 25 basis points cut. Indications of future rate movements will be closely watched.
- In terms of Brexit, Boris Johnson meets with EU leaders today. Tuesday brings the Supreme Court ruling on Parliament’s prorogation, which the Government expects to win.
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