Markets Thoughts : Politics And More Politics Ahead

Looking at the days ahead. China’s Xi will make his inaugural visit to the US on 22 Sep, his first since assuming power in Mar 2013.


China bashing has stopped for a week now, particularly by the Republican presidential candidates and it looks like the media would not want to get into any cross hairs especially with the tensed relationship of the two global superpowers – islands, AIIB and this Chinese yuan business.

Markets too will quieten down into the Chinese Golden Week holidays that start on 1 Oct and we have the Mid Autumn festival this Sunday, 27 Sept.

Given that Japan is out today till Wednesday, we cannot expect to much as we head into the end of the quarter which has been a dismal one globally and we can only hope for some good news out of President Xi’s trip giving us some Chinese cheer in the closing days of the month to give folks something to look forward to for Christmas.

The 1st of October will be the start of the 2016 fiscal year for the US and we have not been hearing too much progress out of Congress on the dreaded Sequestration ! Yes, it has been 2 years since 2013 when the US government shut down for exactly 16 days before partially repealing the budget cuts for 2014 and 2015 and now we are facing D-day again.

Lots of disagreement but we should see some temporary stop gap measures to allow them to thrash it out with Department of Defense the biggest risk as China continues to build those aircraft carriers ! I guess it would be prudent to put the bets on China.

For this is the last year of Obama’s presidency and some folks may try to be heroes ahead of next year’s presidential elections. Bernie will probably be able to tell us more from his Washington vantage point.

In all, a lot of politics but do not forget to catch the final Supermoon lunar eclipse this Sunday (online because it is not visible in Asia), the final one in the tetrad of total lunar eclipses which will not be that rare in this century because there will be 8 sets of total lunar eclipse tetrads and, thus, 8 potential Second Comings to look forward to. Till 2032 …. if the world doesn’t end after this Sunday.