As a Federal Reserve interest rate hike creeps closer, should we remain relaxed about the consequences? September 6, 2015 Andrea Cicione, head of strategy at Lombard Street Research, says Yes. We can’t imagine investors feeling relaxed, with a series of Fed hikes looming, but past tightening cycles have generally been benign for US stocks. During the last nine episodes, price to earnings multiples have fallen by an average 4.2x, but in seven, earnings per [...]
Non-farm payroll: US jobs growth weakens in August leaving Federal Reserve rate hike uncertain September 4, 2015 Weeks of global market turmoil have taken their toll on US job growth, after the number of new jobs created dipped to its lowest level since March, leaving the Federal Reserve with a rate hike dilemma on its hands. Employment increased by 173,000 in August, show non-farm payroll figures released by the US Department of [...]
Instability may put Fed hike on ice August 31, 2015 With oil so cheap, rising employment may not boost US inflation WHEN global markets dived last week, $900bn was wiped off the S&P 500 on Monday and Tuesday alone, and the prospect of a Fed rate hike in September went from consensus view to highly unlikely. But the end of the week brought promising news [...]
September interest rate hike looks “less compelling” in light of China slowdown, says Fed policymaker William Dudley August 26, 2015 A September interest rate rise by the Federal Reserve is now “less compelling”, according to William Dudley, President of the central bank's New York office. "From my perspective, at this moment, the decision to begin the normalization process at the September FOMC meeting seems less compelling to me than it was a few weeks [...]
Jackson Hole: Investors seeking clarity on the US Federal Reserve rate hikes will be disappointed August 26, 2015 As investors start to return from their summer holidays, one date in particular will be looming large in their thinking. The seventeenth of September is tipped by many to be the date when the US Federal Reserve will finally start to hike interest rates as a first step on the long road to “normalisation”. [...]
NY Federal Reserve’s Bill Dudley: Interest rate hike in September is now less compelling August 26, 2015 To hike or not to hike? That is the question. Bill Dudley, chair of the New York Federal Reserve, has suggested the interest rate rise we all thought was coming in September is now "less compelling", thanks to the market volatility which has caused equities to swing wildly over the past few days. Read more: US [...]
Fed policymaker Dennis Lockhart says US interest rates should be raised this year August 24, 2015 A senior Fed policymaker has called for US interest rates to be raised this year, despite the panic that has hit global markets over China's economy. Read more: Black Monday 2015: US stocks battered in biggest fall since 2011 Dennis Lockhart, President of the Federal Reserve Bank of Atlanta, said in a speech today [...]
Federal Reserve is “approaching” rate hike: Members say they need more evidence of wage growth first August 19, 2015 Minutes from the Federal Reserve's July policy meeting offered no indication that the central bank intends to raise interest rates in September. Read more: Hiking rates in September could be an error of historic proportions by the US Fed With uncertainty remaining over wage growth and inflation, the officials “generally agreed” that more information [...]
China stocks recover after second day of falls as markets nervously await Fed minutes August 19, 2015 Stocks in China finished today's session up, despite falls in early trading. That followed big losses on Tuesday. The Shenzhen Composite finished 2.19 per cent higher, at 2,222.05 points, while the Shanghai Composite rose 1.23 per cent to 3,794.11 points – having dipped as low as 5.3 per cent and 6.1 per cent respectively during the [...]
All eyes on Federal Reserve after shock Empire State index drop August 18, 2015 American traders will be poring over crunch sets of data this week after a key index plummeted to its lowest level since the depths of the recession in 2008-09. The Empire State index – one of several widely watched barometers of manufacturing in the US – collapsed to a score of minus 14.9 in August [...]