Will Wall Street decouple from the rest of world?
WALL Street's Friday plunge shouldn't come as much of a surprise, given that the Straits Times Index on the same day went down in anticipation of a US selloff. As a result, it's probable that the index will be relatively firm on Monday as the algorithms that sold or shorted on Friday will look to go long soon.
That's for the short term, the longer-term issue that traders should ponder over is whether the US economy and, by extension, Wall Street is decoupling from the rest of the world.
The reason for this is that 2015 is shaping up to be the year in which central bank action will be key in determining how markets and economies perform - in the course of a month, we've seen market-moving announcements from the US Federal Reserve, the Swiss central bank, the European Central Bank (ECB) and the Monetary Authority of Singapore (MAS).
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Crypto.com wants to sponsor more sports after Formula One Miami
Philippine central bank tightens dirty money risk reporting rule
It is time to put idle cash back into the market
Singapore Savings Bond 10-year average yield hits year-to-date high of 3.33%
Gold dips as US dollar edges higher, investors seek more Fed cues
US Fed ‘less hawkish’ than expected; Singapore banks, net cash companies likely to outperform