Markets also boosted by Bank of Japan’s surprise move to negative interest rates. French economy slows in fourth quarter while Spain powers ahead.Bank of Japan stuns markets by cutting interest rates to -0.1%
2.58pm GMTStock markets are pushing higher after the feeble US GDP data triggered expectations that the Fed will go leisurely on future interest rate hikes. The dollar has also strengthened,as the figures – while disappointing – were in line with forecasts. 2.45pm GMTBack to US GDP. Alex Lydall, senior sales trader at Foenix Partners, or said: Anxious sighs echoed through the chambers of the Federal Reserve as the first estimate for Q4 GDP fell below forecasts at 0.7%. Given recent strong labour data these growth figures will disappoint Janet Yellen with the added pressure of global risk sentiment weighing on the domestic recovery. FOMC Minutes this Wednesday showed the notable defiance of the Fed in the face of global growth pressures originating from China,but a contraction for the final quarter of 2015 could start to weigh on Yellen’s outlook in the coming months. As the US made the first significant steps to recovery in the form of a rate hike final December, the Fed will be keen for this to be backed up swiftly by positive macro-news in the coming weeks. Continue reading...
Source: theguardian.com