US Fed-chair mania possesses bond traders
Bond traders better not be tired of handicapping who US President Donald Trump will nominate to be the next US Federal Reserve chair, because it could be a major driver of profits or losses in the coming days.
The choice between Stanford University economist John Taylor and Fed board governor Jerome Powell has the potential to jolt the bond market in a year defined by low volatility and a tug-of-war between bulls and bears that’s kept yields in a tight range.
Powell, considered the Republican Party’s alternative to renominating Janet Yellen, leads on betting website PredictIt.
In a twist on Friday, traders were left to ponder a partnership atop the world’s most influential central bank: Trump told Fox Business News that pairing them at the Fed is a possibility. Bloomberg
Opec says all options open as compliance hits record
The Organization of Petroleum Exporting Countries (Opec) and its non-Opec allies reiterated that all options to rebalance the oil market “are left open” as producers announced the highest level of compliance with their agreement to curtail production.
The joint ministerial committee responsible for monitoring the agreement, known as JMMC, said on Saturday that the producing countries had achieved a record-high conformity level on their voluntary production adjustments at 120% in September, according to a statement on Opec’s website.
Q3: Sovereign funds’ corporate deals halve
The value of corporate deals with sovereign wealth fund (SWF) participation halved in the third quarter of the year as oil-driven funds continued to take a back seat.
Asian funds GIC of Singapore and China Investment Corp. made all the running.
According to Thomson Reuters data, sovereign wealth funds participated in deals worth just $14.1 billion, down from a revised $28.3 billion in April-June, even though the number of deals rose to 38 from 31 quarter-on-quarter.
The second quarter’s total, however, was swollen by China Investment Corp.’s whopping $13.7 billion acquisition of warehouse firm Logicor, Europe’s biggest ever private equity, or PE, real estate deal.
In a continuation of the previous quarter’s trend, China Investment Corp. and GIC remained the most acquisitive funds, with China Investment Corp. involved in 14 deals and GIC 10.Reuters