december the 13th is in the books here
on Wall Street here's the New York
minute it's been an extremely positive
day for stock markets across the world
the Dow Industrials is nearly at the
20,000 level and it's also been a good
day for bond markets with bond yields
falling which is all very intriguing
because as you can see from the two year
Treasury yield which is at its highest
since 2010 markets are completely braced
for a rate hike from the feds from the
FOMC beat tomorrow the big question as
you can see from the Fed Funds futures
market is what signals we get as to what
will happen after that at the moment we
have a roughly one in three chance that
there's only a one rate hike next year
but also a one in three chance that we
get as many as three rate hikes next
year listen to what Janet Yellen says
about that but why the positivity
ultimately even if people don't quite
realize it it's because of China we take
a look at the MSCI World Index that
covers all the main developed markets
for companies that get their most of
their sales from China you can see that
under palm terribly for a long time but
turns up words earlier this year maybe
we should be paying more attention to
China than to Washington DC and that's
the New York minute