NEW YORK, Feb 16 — Stocks rose today as recent economic data from around the world fed hopes that the global economy might not face as hard a landing as feared a few months ago, even as interest rates threaten to remain higher for longer than expected.
London’s FTSE 100 continued its recent run of record highs thanks to with a flurry of share buybacks from banks that lifted their shares. “What is becoming clearer... is that the US economy in particular has been very resilient and so as a result, the market is sort of pricing out this risk of a hard landing at least in the short term,” said Julien Lafargue, chief market strategist at Barclays Private Bank.
Only a couple of weeks ago US interest rate futures implied the Fed funds rate, currently fixed between 4.5 per cent and 4.75 per cent, would drop below 4.5 per cent by year’s end. They now flag rates above 5 per cent through the year. Other central bankers on the radar for the day are Bank of England chief economist Huw Pill, Bank of Canada Governor Tiff Macklem and Fed officials James Bullard and Loretta Mester.While equities keep climbing, the repricing of the interest rate outlook is putting the brakes on a couple of months of selling of the dollar.
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: malaymail - 🏆 1. / 86 Read more »