The direct and indirect economic effects will become meaningful if the shutdown continues, and the market’s benign assessment will have a downward risk, economists tell International Business Times.
The U.S. economy will be more resilient than other major global economies as it benefits from fiscal stimulus measures of the previous year, Nariman Behravesh, chief economist at IHS Markit, has said.
Analysts expect the stock markets to continue to be volatile this year and see 2,600 as a key resistance level for the S&P 500 index.
Majority analysts polled by International Business Times expected a rate hike in the December meeting, but saw the Fed cutting back on the number of rate hikes next year.
Cautious home buyers, rising interest rates, tax law changes and a mountain of student loan debt are holding back the housing market. But analysts told the International Business Times that there is no bubble building up, unlike in 2008.
Bitcoin’s roller-coaster ride this year may not have ended with its dramatic crash in November and the cryptocurrency is likely heading for another round of punishment, analysts told International Business Times.
Gold’s bearish trend will continue into the first quarter of 2019 as a stronger dollar and trade tensions weigh, analyst Robert Zukowski of Continuum Economics said.
As Democrats are widely expected to take the House, analysts said history shows it is not a bad thing for the markets.
Analysts told International Business Times that markets will reflect an expected slowdown in global growth next year.
Analysts revised upward their WTI and Brent crude forecasts for the fourth quarter of 2018, as concerns over Iran’s supply and lack of action by OPEC continue to lend support.
Analysts who spoke to International Business Times thought the deal gave the best possible outcome for Canada but offered little to the United States.
Despite the political pressure to spend on election promises, which has fueled talks of an ‘Italexit,’ the heavy economic costs of such a move will deter Italy’s politicians from walking out of the EU.
All economists polled by International Business Times expect the U.S. Federal Reserve to raise its benchmark Fed Funds Rate by 25 basis points to 2.0-2.25 percent.
Copper prices are expected to bounce back as demand in China stays firm and the surplus supply in the market is cleared, analysts say.
Most analysts polled by International Business Times/Newsweek say a weak global demand, stronger dollar and trade war worries will keep a lid on crude oil prices.