u.s. actions operate with a small step forward Thursday, a day after the Federal Reserve raised its interest rates for the first time in the year and gave signals that it will adopt a faster pace of increases in 2017.
The Dow Jones industrial average rises by 0.3%; while the S&P 500 and the Nasdaq gain 0.4%.
In turn, a wave of bond sales from the Treasury of the united States gets a boost on Thursday and the bond yields 10-year touched its highest level since September 2014 as investors positioned for a faster pace of hikes of the types in 2017.
The performance of bonds referential to the U.s. Treasury 10-year earned 11 basis points, to 2.6%, and are designed to record their biggest rise daily since the 9th of November, the day after the u.s. presidential election.
That increase has increased the gap with respect to the benchmark German equivalent of 10 years to its highest level since the beginning of 1989, according to Datastream.
The Fed’s decision Wednesday to raise rates by 25 basis points to between a 0.5 and a 0.75 per cent was widely expected, but investors were surprised by the projections showed a median of three hikes rates next year, from two increases in previous estimates.
yields of short-term debt also widened gains recorded after the announcement of Fed rate.
The return of Treasury notes up to two years rose to 1.3% in the european businesses on Thursday, its highest level since August 2009.
The yields of the debt for five years rose 11 basis points, to 2,12 percent, while 30-year bonds advanced five basis points to 3.2%.
The rise in yields of Treasury bonds of the united States made the dollar appreciate to a maximum of 14 years against the euro, which came to depreciate until 1,0425 dollars.
meanwhile, the main european stock markets kept on rising, on the day following the announcement of the rise of interest rates in the united States.
The day is marked by the profits of the shares and the growing activity of corporate agreements, was still propping up the optimism at the end of the year.
• Asia
The bag Tokyo also closed to the upside and set a new record in a year, after the rise of interest rates in the united States weaken the yen, by encouraging exporting companies.
The index Nikkei 225 leading values won by 0.1%, that is to say, 20,18 points, up 19.273,79 points, its highest level since mid-December of 2015.
as for the change, the dollar climbed to 117,50 yen, a record since February. The euro receded with respect to the eve and was worth a 123,50 yen.
The decision of the U.s. Federal Reserve to raise interest rates will lead to a new financial turmoil, and we can expect a “disorder” global to the extent that the dollar appreciates by an accelerated pace of rising rates, said in a commentary state news agency of china Xinhua.
The Fed’s decision “will inevitably cause a new financial turmoil, and worsen the situation of those countries that are too dependent on external finance and that they do not have sufficient capacity to pay their debt, especially those emerging markets,” said Xinhua on Thursday.
on Thursday, the yuan depreciated to its lowest level in eight and a half years against the dollar after the Fed raised interest rates by 25 basis points, and projected more increases than previously estimated.
This month, the vice minister of Finance chinese, Zhu Guangyao, said in an interview that a rate hike from the Fed would mean higher outputs of capital for all markets, including China.
The Fed’s decision took place shortly after China reported that its foreign reserves at the end of November were at their lowest level in nearly six years.
“If the united States accelerates its pace of rising rates in the future, a stronger dollar would lead to a mess at the global level” because different countries have different rates, said Xinhua.
The agency said in the commentary that it was “advisable” that the united States enhance coordination with other major economies on political and macro-manage in a prudent manner the pace of rising rates.
• The Fed raised rates
Yesterday, the Federal Reserve of the united States resolved to raise slightly the reference interest rate by 0.25 percentage points, the second increase in ten years.
The central bank said that “labour market conditions and inflation” are at the levels indicated in order to justify a raise in the short-term rate, which will be located in a range of between 0.5 and 0.75 percent.
The chairwoman of the Fed, Janet Yellen, considered that the decision taken by the Open Market Committee represents a “moderate” increase.
The Fed noted “strong improvement” of market labour, with a fall of the unemployment rate, while economic activity “has been expanding at a moderate pace since mid-year”.
inflation, meanwhile, continues to be below the target of the Federal Reserve, two percent.
The Fed “expects economic conditions to evolve in such a way as to ensure only climbs graded” in its interest rate of reference.
The central bank american rose a year ago, the rate on 0,25 percentage points, after keeping it at a margin close to zero since December 2008.
The central bank’s monetary policy has important consequences especially in developing countries, where many transactions are conducted in dollars, and the debt can also shrink in the u.s. currency.
At the end of 2015 the Fed projected that there would be at least two or four increases in the interest rate for the end of 2016, but this Wednesday saw the first upload of the year.
The rise was expected by the markets. In this way, the Fed continues with the goal of normalizing its monetary policy after the financial crisis of 2008.
In November, the u.s. Government reported a drop in unemployment, from 4.9 to 4.6 percent, a milestone after which the rate on the site of about five percent for more than a year.
consumer prices increased 0.4 percent in October, the largest monthly increase in more than six months. In the past 12 months, inflation was 1.6 percent.
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