Neil Mackinnon – Chief macro strategist at VTB Capital – joined Mike Ingram and Zak Mir in the Tip TV studio to discuss what powers the major central banks have to turn the markets around again.
Uncertainty over possible second down leg
The warning signs have been evident for a while, says Mackinnon, as ongoing market pressure in China, speculation over a Fed rate hike, and oil prices looking for a bottom have culminated in Monday’s flash crash. However the overall bearish outlook for the markets still persists, and with major banks having exhausted almost all monetary options, there is little that can be done to break this cycle.