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NEW YORK (Reuters) - The eurodollar and Fed funds markets, which track short-term interest rate expectations, on Wednesday reduced bets on the time frame of a potential tightening by the U.S. Federal Reserve after it dampened expectations of an early move.
Trading has been choppy after the Fed statement and Fed Chairman Jerome Powell’s news briefing, with futures pricing changing frequently, therefore shifting rate hike bets as well.
In the more liquid eurodollar futures market, traders have priced in a 90% chance of a Fed hike by March 2023 after the Fed statement, pushing back from December 2022.
Traders still factored two additional rate increase in 2023, but the implied yields have come down a bit, suggesting a less firm conviction, compared with that before the Fed meeting.
Asian economies are better prepared to face a taper tantrum-like incident, but countries like India and the Philippines stand “the most vulnerable at the current juncture,” global rating agency S&P said in a report on Wednesday. “Both economies have seen inflation rise in recent months. Real policy rates are below long-run average levels, eroding the return buffers. Capital may be quicker to leave and the central banks may have to by raising policy rates,” the rating agency said. However, it noted, one mitigating factor for both countries is that current accounts are stronger relative to normal levels . The Reserve Bank of India (RBI) has lowered policy rates by 250 basis points since January 2019, of which 115 basis points were done after the nation went into a lockdown due to the pandemic. Given the weak economic recovery, analysts expect the rates to remain soft at least in the current year.
European stocks mixed ahead of US interest rate decision yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.
Rs 3.57 lakh crore investor wealth lost as market falls for fourth straight session
Market cap of BSE-listed firms fell to Rs 203.71 lakh crore against Rs 207.28 lakh crore in the previous session
Aseem Thapliyal | March 17, 2021 | Updated 18:44 IST
Sensex ended 562.34 points lower at 49,801.62 and Nifty slumped 189.15 points to close at 14,721.30.
Investors lost Rs 3.57 lakh crore today after market ended lower amid weak global cues ahead of the US Federal Reserve s policy decision. Market cap of BSE-listed firms fell to Rs 203.71 lakh crore against Rs 207.28 lakh crore in the previous session. Rising COVID-19 cases in multiple states also hit investor sentiment.
Sensex ended 562.34 points lower at 49,801.62 and Nifty slumped 189.15 points to close at 14,721.30.
Euro zone bond yields tick up, eyeing Fed yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.