Asia World Capital Group: Poor US economic data likely to increase Federal Reserve caution over the tapering of QE. |
Asia World Capital Group says that the likelihood of a tapering off of quantitative easing has “diminished significantly” in recent weeks as data points to a softening of the recovery in the world’s largest economy.
The Hong Kong-based investment manager’s latest client investment report describes what it sees as the “very real prospect of the Janet Yellen-led Federal Reserve keeping monthly asset purchases at the current $85bn level until the second quarter” of 2014 at least.
An Asia World Capital Group senior strategist said, “Anyone with a modicum of common sense knew full well that even if the Fed had tapered stimulus in September, it would only have been a token gesture but, as it stands now, we think all talk of tapering will quietly disappear until next year especially considering the latest non-farm payrolls report which showed the US economy only generated 148,000 new jobs last month, far short of the 200,000 it needs just to accommodate population growth.”
The firm says it intends to remain overweight equities and has revised its call on the commodities sector from “hold” to “buy” citing the increasing likelihood of a global central bank shift toward further stimulus in the face of slowing economic conditions around the world.
The Federal Reserve’s balance sheet is closing in on the $4 trillion mark having stood at less than $1 trillion before the first and subsequent rounds of quantitative easing introduced since November 2008.
Asia World Capital Group says that although inflation rates may officially be subdued, in the real world, prices of essentials like food and fuel continue to rise for most ordinary people.
About Asia World Capital Group:
Asia World Capital Group is an Investment Banking Advisory, Trade and Corporate Finance house, specialising in bringing quality issues to institutions, Small to Medium Size Enterprise (SME) and private clients. Their base of experienced professionals provides their clients with access to a range of Trade Financing Products, Financial Instruments, Investment Banking services, Pre-IPO and IPO opportunities, World-Wide Stock Markets’ Investments and quality professional advice to help move their business forward. Asia World Capital Group utilise their vast portfolio of affiliates, considerable experience and a range of financial instruments to achieve your goals.
For more information contact: Asia World Capital Group Roger Bowden Room 2006-7, Tower Two, Lippo Centre, 89 Queensway, Admiralty, Hong Kong http://www.asiaworldcap.com firstname.lastname@example.org +85258084007
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