Wall St to Fed: Not so fast; dealers see
only 2 hikes in 2017
The poll of primary dealers - the 23 banks that do business
directly with the Fed - also showed that a majority of the participants expect
US President-elect Donald Trump's economic plans to boost business investment,
a notably absent factor in the current economic expansion.
· Gold falls to over 10 mth low as Fed signals more hikes in 2017
Spot gold edged 0.4 % lower to USD 1,139.54 an ounce by 0108
GMT. The bullion touched a new low of 1,134.71 an ounce, its lowest since Feb.
3. The yellow metal fell over one percent in the prior session.
· Oil prices fall after US hikes interest rates
· Oil prices fall after US hikes interest rates
Oil prices dropped on Thursday as a hike in US interest
rates prompted a flood of money away from commodities and into U.S. bonds and
the dollar.
· Asia stocks, bonds struggle as Fed flags more hikes
· Asia stocks, bonds struggle as Fed flags more hikes
Asian shares and currencies struggled on Thursday after the
Federal Reserve raised rates for the first time in a year and hinted at the
risk of a faster pace of tightening than investors were positioned for.
· Wall Street slides
after Fed raises rates; energy weighs
The Fed's decision to raise rates comes as President-elect
Donald Trump, who will be sworn in next month, is seen cutting taxes and
increasing spending on infrastructure.
· Fed’s hawkish view a dampener for financial shares: Bill
Gross
The Fed on Wednesday approved the first interest rate hike
in a year. In addition, the FOMC indicated a higher rate in its look ahead than
projected back in September. The committee now expects three rate hikes in
2017, two or three in 2018 and three in 2019.
· Fed’s hawkish commentary a
surprise; EMs to remain under stress
Fed chair Janet Yellen also said that there is a possibility
of three hikes by the US Fed in next three years. This is likely to make
investors cautious, believes Seth Freeman of CEO & Chief Investment Officer of EM Capital
Management.
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· Probability for June 2017 rate hike jumps after Fed meeting
The CME Group FedWatch probability for a June 2017 rate hike
rose from a 57.7 percent chance for a June rate hike to 78 percent after the
central bank announcement.
· Fed rate hike sign of 'confidence' in US economy: Yellen
The increase, which was widely anticipated by markets,
"should certainly be understood as a reflection of the confidence we have
in the progress that the economy has made and our judgment that progress will
continue," Yellen told a press conference.
· EMs to underperform in
near-term; positive on India: Experts
US
economy strengthening in 2017 will have a negative impact on emerging markets
(EMs), said Mixo Das of Nomura. However, in the near-term, EMs are likely to
underperform the developed markets.
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