The final trading day of the year is upon us and the end of 2013 is in sight. Trading volumes are expected to be relatively low until after the Christmas/New Year lull.
The year in the financial markets, will most likely be remembered for the positive of exiting financial crisis mired by scandals of fixings in a variety of markets.
What to expect in 2014?
The UK and US economies are predicted to grow, unemployment to trend lower and the timing of tightening economic policy to be debated on a near daily basis. Bernanke finished the year by tapering the monthly asset purchases of the Fed, and his successor will follow suit, though the pace is unclear.
The Eurozone has difficult issues to contend with, the disparity between the likes of Germany and Greece, doesn’t look to be reducing anytime soon. The one size fits all economic policy for the EU doesn’t seem to be effective, with 2014 likely to bring another bailout for one of the Mediterranean countries.
What are peoples #2014Guesses? I think Gold could trade below $1050, USDJPY to trend upto 120 and the SNB will remove the EURCHF peg— Joe Bond (@Joe_Trading) December 31, 2013
China throughout the global economic crisis has been the economy that the others have envied, explosive levels of growth, and the so-called hard landing could even be avoided. The concern is that this has been fuelled by excessive borrowing and the surge of bad-loans could bring a stop to the expansion. The Australian economic growth has been driven by Chinese demand for raw materials, if this unparalleled claim for commodities slows, the Australian economy is likely to follow suit.
From all of the team at Abshire-Smith, we wish you a Happy New Year and best of luck in the markets in 2014.