Finally, in the fourth quarter investors will be watching what the Federal Reserve does as well as changes to tax policy for signs of
reflation. So far this year, the
reflation trade has struggled due to the lack of any fiscal policy progress, a weakened dollar and a range bound 10-year U.S.
The aim should be to end fiscal austerity, imposed in 13 out of 14 leading advanced economies between 2011 and 2015, and prioritise
reflation, full employment and decent jobs, rather than tackling inflation and cutting government debt.
In a commentary, Citi said an 'unusually large price action ahead of the FOMC (Federal Open Market Committee statement) may signal a return of
reflation trades.
All in all, Julius Baer believe that the tightening of the labour market within a robust economic backdrop will foster a mild
reflation and allow a gradual firming of US monetary policy.
The broader concern is that a decelerating China, squeezed by tighter financial conditions, represents a double hit to the global
reflation trade.
Yet fast forward to today and the China-triggered
reflation trade for commodities is ebbing.
The apex bank said that it is expecting its stimulus measures to achieve its
reflation goal.
As reflected in Tuesday's World Economic Outlook (WEO), economic activity has gained more momentum amid accommodative monetary and financial conditions which the IMF explains have spurred hope for
reflation. "Longer-term interest rates have risen" and helped to boost the earnings of banks and insurance companies.
In March 2017, China's central bank raised borrowing costs as a stable economy and factory
reflation give it scope to follow the Federal Reserve in tightening policy.
If his promise to be more domestically-focused is upheld, then this will likely lead to US-led
reflation; increasing employment, employee wages, and helping the country's GDP grow faster in 2017.
GARRY OWEN NEWSBOY 2.00 AVENTINUS 2.30 EASTERN DRAGON EASTERN DRAGON 3.00 AZZIR (NAP) AZZIR 3.30 BALANCE 4.00 RIO DEVA
REFLATION 4.30 GOLD FLASH MOONLIGHTNAVIGATOR 5.00 ROC DE PRINCE CAPE HIDEAWAY GARRY'S DOUBLE: AZZIR (NAP) & WAR GLORY (4.15 CHELMSFORD (A.W)) SOFT (Good to soft in places; GoingStick 7.2) (Rail movements - R1, 2, 3 & 6 +12yds and R7 +24yds) LIVE ON RACING UK DRAW: Variable bias on straight course but low tends to be slightly favoured on the round course.