Fed Indicates No Rate Hike in April 30th March 2016
Markets react to the Fed's confirmation that no Rate Hike will happen in April, possibly this year.
Toronto, Canada, March 30, 2016 (Newswire.com) - Baumann Group
Fed Indicates No Rate Hike in April 30th March 2016
Speaking at the Economic Club in New York the head of the Federal Reserve continued her dovish comments and gave clear guidance that concerns over global instability and the low cost of oil would see the US Central Bank hold off from increasing rates in April.
Evan Campbell, PR Manager
All eyes were on Washington yesterday as the global markets were cautious ahead of Ms. Yellen’s speech.
Whilst Asia shied away from making too many moves, Europe’s trading day was rather positive by comparison. After lunch European markets started to ease off as the meeting in the US drew closer.
Speaking at the Economic Club in New York the head of the Federal Reserve continued her dovish comments and gave clear guidance that concerns over global instability and the low cost of oil would see the US Central Bank hold off from increasing rates in April.
Many analysts believed an increase was due next month as the US economy strengthens along with the employment sector, this now has been confirmed as not the case.
The news bolstered the local markets and after the meeting there was a brief rally on the indexes with technology stocks seeing particularly strong inflows.
US Market Closes 29.3.16
Dow Jones 17,633.11 +97.72 (+0.56%)
S&P 500 2,055.01 +17.96 (+0.88%)
NASDAQ 4,846.62 +79.84 (+1.67%)
After the meeting the $USD fell against a basket of currencies including the EUR, GBP and Swiss Franc.
The weaker $USD and the Fed holding rates the same continued to hurt the big banks with the sector down on the day, of note, Bank of America was down 1.5% and Wells Fargo slipped a further 1.3% by the end of the day.
It’s expected that the rally seen late last night will continue into Asia and Europe on Wednesday with Asian Futures seen opening higher as traders look to make up ground after Easter.
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