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Fineco Worldwide – Widespread Uncertainty Stalls Equities.

Todays Date: December 17, 2018

Fineco Worldwide: on why the traditional December surge in equities has been subdued so far.

“Fineco Worldwide” apparently believes that the traditional December surge in equity prices colloquially known as the “Santa Rally” will fail to manifest itself this year.

Markets appear to looking for direction and the fact that November’s QE2 announcement and last week’s deal to extend the Bush-era tax cuts haven’t sent markets soaring indicate that there is still considerable uncertainty among investors.

“There’s a lot of fence-sitting going on but we’ve been paying particular attention to volumes of shares being traded. On sell days the volume is noticeably higher than on buy days and this tells us that many investors are bearish even if they can’t ignore the numbers on the Dow and the S&P,” said a source at “Fineco Worldwide”.

Markets seem to waiting for an interest rate decision from the People’s Bank of China after an official change of monetary policy stance and yet another edict curbing the lending activities of the nation’s commercial banks last week.

“Fineco Worldwide” suggest that although the US remains the world’s largest economy by far, economic data and monetary policy in China has become increasingly important to global markets and a rate hike cannot be realistically priced in to equity values since a 25 basis point increase is not a foregone conclusion.

“Given the seriousness of the inflation issues in China, 50bp is not beyond the realms of possibility,” said a “Fineco Worldwide” analyst.

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