• Home
  • Contact Us!
  • Privacy Policy

Radio Metta

  • Home
  • Business
  • Education
  • Health
  • Home Deco
  • News
  • Real Estate
  • Technology
  • Contact Us!
  • Privacy Policy
Home» Business»Global stocks rise as U.S. data dims September rate hike chances

Global stocks rise as U.S. data dims September rate hike chances

Saheli 16 Sep 2016 Business Comments Off on Global stocks rise as U.S. data dims September rate hike chances 330 Views

Global equity prices gained on Thursday after weak U.S. retail sales data undermined the argument that the Federal Reserve will raise interest rates next week.

The U.S. Treasury yield curve surged to its steepest levels in 2-1/2 months as longer-dated debt fell, highlighting expectations that the Fed could hold off from raising rates at its two-day meeting that concludes on Wednesday.

August U.S. retail sales fell more than expected, pointing to cooling domestic demand that further diminishes expectations for an interest rate increase next week.

“The disappointing retail sales numbers really reinforces our view that it would be difficult for the Fed to lift rates next week,” said Bill Merz, an investment strategist at U.S. Bank Wealth Management in Minneapolis.

Also on Thursday, U.S. weekly jobless claims data showed a tightening labor market with subdued layoffs last week, while underlying producer price inflation crept up in August.

The gap between five-year note yields and 30-year bond yields US5US30=TWEB widened to 129.70 basis points, the steepest since June 27.

Expectations that the Fed will wait longer to raise rates is causing the long bond to underperform as lower rates are likely to boost inflation longer-term, which erodes the value of the debt.

left
right
3/3

left
right
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 15, 2016.REUTERS/Brendan McDermid
1/3

left
right
2/3

left
right
3/3

left
right
1/3

Futures traders are pricing in a 12 percent chance of a rate increase this month, down from 15 percent on Wednesday, according to the CME Group’s FedWatch tool. Friday’s consumer price inflation data is the next economic focus.

MSCI’s world stocks index .MIWD00000PUS, which tracks shares in 45 nations, rose 0.73 percent. It was boosted by a buoyant Wall Street, which rose on views that the latest economic data hurt the case for a rate hike.

“These things are not pointing to the need for the Fed to raise interest rates in September. That’s one of the reasons you’re seeing a relief rally today,” said Jamie Cox, managing partner at Harris Financial Group in Richmond, Virginia.

The Dow Jones industrial average .DJI rose 177.71 points, or 0.99 percent, to finish at 18,212.48, the S&P 500 .SPX gained 21.49 points, or 1.01 percent, to close at 2,147.26 and the Nasdaq Composite.IXIC added 75.92 points, or 1.47 percent, to end at 5,249.69.

Apple’s shares rose as much as 3.5 percent and gave the three major indexes their biggest boost after the company said that the first batch of its new iPhone 7 Plus sold out globally.

European shares finished the day higher in choppy trading, with UK supermarket Morrisons (MRW.L) leading gainers following a strong earnings update. Europe’s broad FTSEurofirst 300 index .FTEU3 closed up 0.55 percent at 1,339.13.

Stocks in Tokyo closed at a three-week low amid uncertainty over interest rate policy.

Oil prices rose about 1 percent, tracking a rally in gasoline futures. A delayed restart of the main gasoline line at Colonial Pipeline, the No. 1 carrier for the motor fuel in the United States, pushed that market higher.

Brent crude LCOc1 settled up 74 cents, or 1.6 percent, at $46.59 a barrel, while U.S. crude CLc1 settled up 33 cents, or 0.76 percent, at $43.91.

In currency markets, the U.S. dollar reversed early gains against the yen as traders doubted that the Bank of Japan would be able to weaken the yen with more policy stimulus at its policy meeting next Wednesday.

Profit-taking and gains in commodity currencies also weighed on the greenback. The U.S. dollar .DXY was little changed against a basket of major currencies.

On Thursday, the Swiss National Bank and the Bank of England both held fire, without any further moves to support growth or weaken their currencies.

Spot gold fell to a two-week low XAU=, trading down 0.7 percent to $1,313.31 an ounce.

[Source:-Reuters]

as chances: data dims Global Hike rate rise September stocks U.S. 2016-09-16
Tags as chances: data dims Global Hike rate rise September stocks U.S.
Facebook Twitter Stumble linkedin Pinterest More

Authors

Posted by : Saheli
Previous Article :

As it happened: Tamil Nadu bandh passes off peacefully

Next Article :

Uber starts mapping UK city streets

Related Articles

Step up: Tips for organizations from the FTC’s settlement with Genshin Effect designer HoYoverse

Step up: Tips for organizations from the FTC’s settlement with Genshin Effect designer HoYoverse

admin 07 Feb 2025
The main 3 showcasing challenges for independent companies (and how mechanization can tackle them)

The main 3 showcasing challenges for independent companies (and how mechanization can tackle them)

admin 24 Sep 2024
The most effective method to Begin a Blog (and Bring in Cash) in 6 Stages: Simple Fledgling’s Aide

The most effective method to Begin a Blog (and Bring in Cash) in 6 Stages: Simple Fledgling’s Aide

admin 19 Sep 2024

Latest Post

How is PSA used to monitor prostate cancer?
Health

How is PSA used to monitor prostate cancer?

admin 01 Sep 2025
The Future of High Performance Networking: Ultra Ethernet Explained
Technology

The Future of High Performance Networking: Ultra Ethernet Explained

admin 28 Aug 2025
Why a focus on foundational education must be at the heart of the response: Out of school but not out of reach
Education

Why a focus on foundational education must be at the heart of the response: Out of school but not out of reach

admin 23 Aug 2025
HP Increases Innovation in Gaming
Technology

HP Increases Innovation in Gaming

admin 19 Aug 2025
Anatomy, Function, and Common Injuries of Hamstring Muscles
Health

Anatomy, Function, and Common Injuries of Hamstring Muscles

admin 12 Aug 2025
Gaming Your Way to Sharper AI Prompts
Technology

Gaming Your Way to Sharper AI Prompts

admin 07 Aug 2025
15 Elegant Living Room Hanging Lights
Home Deco

15 Elegant Living Room Hanging Lights

admin 04 Aug 2025
September 2025
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930  
« Aug    
  • Home
  • Contact Us!
  • Privacy Policy
Copyright 2016, All Rights Reserved
Magazine Blog News WordPress Theme