Polls’ patchy track record worries some people though, and that’s evident in derivative markets where two-week risk reversals — an indicator of bullish to bearish bets — are at two-month highs.
That prospect will likely keep the economy and markets jittery.
Some of the extreme pessimism in bond markets has also abated, lifting German 10-year yields more than 40 basis points off record lows.
There seems little likelihood the Federal Reserve will move the fed funds target rate at its Dec. 10-11 meeting; after all, it cut rates for the third time this year in October and signaled it would stand pat for a while to monitor the economy.
Since then, the Fed has been stabilizing repo markets by offering to buy securities nearly every day.
It’s shaping up to be a busy week in emerging markets. Firstly, the blizzard of interest rate cuts is set to resume, with Russia slicing another 25 basis points off its 6.5 percent benchmark rate and Turkey expected to slash another 100 bps from its 14 percent rate.
Article source: http://www.dailystar.com.lb//Business/International/2019/Dec-09/497044-five-things-to-watch-out-for-this-week.ashx