Wall Street: when, not if
Article Abstract:
US interest rates were not raised at the start of Jul 1996, but are likely to be raised some time thereafter due to evidence of a tight labor market. Inflation for hourly wages is increasing and employment rose by more than expected in Jun 1996. Interest rates could be raised by more than 0.25% since a small rise could lead to expectations from markets that further rises are likely. The reaction of equities in unclear since a rise is expected yet share price changes indicate that there is concern over rate rises.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Wall Street: earnings shock
Article Abstract:
US corporate earnings could be affected by a number of factors in 1996. These include consumer debt, a possible drop in federal spending, a slowdown in capital spending, and inventories. The Dow Jones may not reflect this since investors are turning to larger companies which tend to be listed on the Dow. Lower rates of interest may offset the impact of a drop in earnings on share prices. Reductions in taxes and higher levels of bank lending could lead to a rise in US interest rates by the end of 1996.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Wall Street: decision time
Article Abstract:
US interest rates could rise in summer 1996 which in turn could affect share prices. Employment growth is one factor that could lead to a rise in rates in Jul 1996, but other indicators show that inflation may not be a threat. Gold prices are low and bond yield spread have narrowed. Higher yields could affect economic activity in 2nd half 1996. It may be easier to correct tight monetary policy than it would be to correct policy that is too loose and leads to inflation.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Wall Street won't get toppy till the Brits rush in. Money matters. Subterranean
- Abstracts: Efficient consumer response meets the industrialization of agriculture. Analysis of grocery buying and selling practices among manufacturers and distributors: implications for industry structure and performance
- Abstracts: Sharing knowledge. Strength in renewal: armed with a new mission and a new vision, the CA profession embarks on a re-engineering project in governance
- Abstracts: The robustness of the APT to alternative estimators. Extreme price clustering in the London equity index futures and options markets
- Abstracts: Private banking: players proliferate as demand increases. Offshore banking: attending to the needs of expatriates