Will the Rate Hike Possibility Have Any Impact on Equity Markets?
Interest rates and equity markets usually have an inverse relationship.
Since the last FOMC meeting in July, economic conditions in the US have continued to improve.
In this series, we’ll examine the improvements in the US economy since the last Fed meeting and discuss whether these developments could warrant accelerated tightening from the Fed.
The British pound is headed for its fourth weekly positive close in a row backed by the strong August inflation print and the hawkish statement from the Bank of England.
Inflation in the United Kingdom has been on a higher trajectory with consumer prices in the United Kingdom rising 2.9% in August year-over-year.
At its September meeting, the Bank of England left the benchmark interest rates unchanged at 0.25%.
Green bonds are well suited to access the huge amount of capital required to fund low-carbon green projects.
Even if we assume that green bonds don’t offer any significant premium over conventional bonds, there are many who believe in other noteworthy advantages of green investing.
Despite the rapid rise in issuance, demand for green bonds continues to outshine supply. The excess demand for green bonds has led to higher returns.
Green bonds are used by organizations worldwide to fund environmentally sustainable projects such as renewable energy, energy efficiency, and clean water.
The Japanese yen (JYN) continued to depreciate against the US dollar last week.
The British pound (FXB) appreciated against the US dollar for the week ending September 15.
As per the latest Commitment of Traders (or COT) report, released on Friday, September 15 by the Chicago Futures Trading Commission (or CFTC), speculators turned bullish on the euro during the week.
The US Dollar Index (UUP) witnessed a sharp recovery last week, rebounding from a two-year low of 91.0.
The S&P 500 Index (SPY) closed the week ending September 15 at 2,500.23, gaining 1.6% as compared to the previous week’s close.
After a 20% surge in volatility in the week of September 4, volatility in the global markets dropped as markets opened on September 11.
The US dollar has been on a roller coaster ride over the last ten trading sessions. The US dollar (UUP) index hit a low of 90.99 on September 8.
Markets always welcome tax cuts. President Trump has proposed to cut taxes to spur investment and spending.
The consumer price inflation (CPI) data reported on Thursday indicated an increase of 0.4% in August. The year-over-year rate improved from 1.7% to 1.9% for August.
For this fiscal year, through August, the federal deficit stood at $674 billion. Compared to the previous year, spending is up 3% and receipts have risen 2%.