You're watching...
IG Markets analyst Alastair McCaig on the global markets’ reaction to uncertainty over the fiscal cliff.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Thank you marry -- all right.
Markets around the world are reacting to the surprising lack of votes on John Boehner plan B we do have a global selloff hasn't been talking about under -- here let's go live to London.
We're joined by -- the credit market analyst for IG -- morning Alastair.
Again it looks like the driver here is this -- US fiscal cliff mess this week.
Inch ever so close to it approaching the end of the year do you think that the big selloff here's an indication of markets investors kind of reevaluating where we are in terms of global growth because of the situation in the US.
Well I think -- if we -- driving is the analogy.
It looks very much like last night instead of putting their foot on the break the American sentiment put a foot on the gas.
The fact that the Republicans can't agree amongst themselves let alone with the Democrats.
Again shouldn't be too much of a surprise we are talking about politicians here.
And the fact that they took it right down -- the one lost time again shouldn't be taken.
But what you want help -- that -- on instruction but what does it mean here for the markets is this an inflection point.
How we can continue to it.
To move lower I -- volume has led the holiday we've been sitting here for six weeks now waiting -- president I've bomber and and the Republicans to come to some sort of agreement and the fact that this is gonna get -- of the to the wire again but you know as the basis takes on we've been factoring in in this factoring this into a greater extent so.
In it looks very much like something -- got thrashed out probably.
Probably within hours of any deadlines that have been set yet at that seems to be the way the markets -- and yes save and I we did -- Dow futures down 290 points or one point in time but they recovered pretty well by the European -- there was any doubt about a 155 points.
Obviously you're not concerned that -- a lot of -- local -- -- celts I'm just trying to -- -- feel for the market reaction right now because it's ugly.
And where we're going from here if it's just a knee jerk reaction or if it's a meaningful statement.
On it's it whether or not it's time -- to back here cash out of equities in particular.
I think as far as markets consent it was a knee jerk reaction initially we saw aggressive -- It that'll calmed down again we wish we have been factoring in the that's gonna be waffling and stalling -- both parties right to the bits around until we get.
An actual yeah definitive on -- one way or the other.
Then the markets who continues a factory that they'll get right down to the -- and I think that's the way the European.
Markets -- certainly according to say it's it didn't have a seismic shift out of equities and into something else too early to -- this this will carry on for another week no doubt.
All right the entire world on hold waiting for DC do something if anything at all ouster -- thanks for your insight your analysis.
Rights and now let's get back here to the United States.
