Daily Commentary BY THE CURVE TEAM –

Volatility Continues To Be Front & Centre

20th of March, 2017

The presence of volatility within financial markets continued to gather strength overnight. News within equity markets looks to have overshadowed the ongoing Brexit negotiations, while the release of the minutes from this month’s RBA policy meeting will have markets watching intently.

If the weekend antics from US President Donald Trump were not enough to cause a stir within markets, the news coming out of the tech world certainly added some fuel to the fire.

Stock indexes experienced a global decline overnight as news regarding Facebook’s data breach as well as Apple’s decision to develop its own screens came to light. The Dow Jones and S&P500 both down nearly 1.5% while the Nasdaq 100 index was down 2.5%, the lowest since mid February.

The increase in market volatility comes at a very interesting time as we look towards to tomorrow’s meeting of the FOMC, where it is expected that central bank will lift rates for the first time this year.

This looked to overshadow what looks to be a fairly crucial moment in the ongoing Brexit negotiations. News out of Europe was that the two parties came to an agreement around the length of time businesses will be given to adjust to the new regime. The Pound rallied as the transition deal nears completion.

Back home and the release of the RBA minutes from their meeting earlier this month will be the highlight today. While it is largely accepted that we won’t see a great deal of change in the rhetoric, the adjustments to the meeting statement indicated that the central bank’s optimism around the outlook, could result in a few changes today.

Oliver Parsons

Client Relationship Manager