US interest rate rises: Investors fear blue chip equity sell-off June 29, 2015 Blue chip equities may be set for a sell-off if the US Federal Reserve raises interest rates this autumn, investment managers are predicting. Base rates in the US have been held at a historic low of 0.25 per cent since December 2008. One consequence of this long period of near-zero rates is that some parts [...]
Investors edgy on Greek fears and rates talk – New York Report June 28, 2015 ANXIETY about Greece and uncertainty about the timing of higher US interest rates may keep Wall Street on edge early next week, but one ray of hope for investors could be an unusually long streak of ambivalence on Main Street. Seen by some as a contrarian indicator of future stock market performance, a weekly poll [...]
With the Fed expected to raise rates later this year, should investors be concerned? June 28, 2015 Anton Eser is co-head of global fixed income at Legal & General Investment Management, says Yes. The impact of tighter US policy seems to be underestimated. When markets were unsettled by the potential for QE tapering in 2013, bond yields rose, equity markets corrected, and high yield and emerging markets saw heavy fund outflows and [...]
Fall in first quarter US GDP was less than we thought June 24, 2015 The fall in US first quarter GDP was less than we previously thought, after the Bureau of Economic Analysis revised its figure up. GDP contracted 0.2 per cent in the first three months of the year, less than the 0.7 per cent originally mooted. However, it's a fall from the first estimate of a 0.2 [...]
Nasdaq rises to record high on Fed interest rate hint June 18, 2015 The Nasdaq closed at a record high on Thursday, rising 68 points to 5,132.95. Read more: Nasdaq hits a record high as US stocks rise The 1.3 per cent rise was triggered by encouraging economic data released by the Federal Reserve yesterday which indicated interest rates could be raised for the first time since 2008 later [...]
Bank of England to launch new blog “Bank Underground” June 18, 2015 The old lady of Threadneedle street will lift up her skirt tomorrow with the launch of a new staff blog entitled "Bank Underground". The blog, named after the nearby tube station, will let Bank of England staff write editorials which support, as well as challenge, existing orthodoxies. Previously, Bank of England staff were limited to communicating with [...]
Fed on course to raise rates by the end of 2015 June 17, 2015 THE FEDERAL Reserve has signalled that a rise in short-term interest rates could come as soon as September, as the US economy continues to show signs of improvement. In a statement after a two-day meeting last night, Fed policymakers did not explicitly say when they plan to lift the central bank’s benchmark rate, but with their interest [...]
FTSE pushed down by Greek debt fears and grocery losses – London Report June 17, 2015 BRITAIN’S top share index turned lower by mid-session yesterday as losses in grocers and caution before a Federal Reserve announcement later in the day weighed on the market. The blue-chip FTSE 100 closed 0.4 per cent lower at 6,680.55 points. The FTSE, which fell to its lowest since late January on Tuesday, has lost around [...]
Wall St up after Fed rates talk – New York Report June 17, 2015 US STOCKS ended slightly higher following a choppy session yesterday after the Federal Reserve said the US economy is likely strong enough to withstand an interest rate hike later this year. Even if a majority of Fed officials continue to see higher rates by the end of 2015, they expect rates to rise slightly less [...]
Fed fuels interest rate hike on “moderate” growth in US economy June 17, 2015 The Federal Reserve has kept interest rates unchanged at a historic low of 0 to 0.25 per cent, but offered hope of an increase in short-term interest rates with positive statements about the US economy. Read more: Why it’s not time to dump US equities – a Fed interest rate hike won’t drag down stocks The [...]