Market roundup: Caution ahead of Fed and BOJ rate decision - ADM

The opening segment of TipTV’s macro show on Tuesday saw host Zak Mir, and Marc Ostwald, strategist for ADM Investor Services, weigh in on the possible lack of substance in the recent rally in risk assets.

Ostwald said many in the markets were caught on the wrong side of the trade and thus were forced to jump ship, leading to exaggerated moves. Some were also underweight on indices and thus had to jump-in as rally in equities started gathering pace.

Mir talked about the recent patchy action in the markets and expressed possibility of low volumes, which Ostwald referred to as caution ahead of the Fed and BOJ rate decision. Furthermore, trading holidays in Asia earlier this week and upcoming holiday in the US is complicating matters as well, courtesy of which “people are not keen in putting more money into markets” said Ostwald.

Opening segment concluded with Ostwald stating China rebalancing has still a long way to go and GBP is rallying on falling Brexit bets.

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