The US Federal Reserve has raised interest rates as expected at 0.5%. With regard to further interest rate hikes the Fed Chairman Janet Yellen, however, expressed caution, pointing to the further development of the US economy. Investors were initially disappointed at the FOMC statement and Euro adheres against the US dollar above 1.09.
Financial Markets News, Broker Reviews and Strategy
The most important news from the international markets!
The today released ZEW index for the economic outlook in Germany is better than assumed in the forecasts. Also for the entire euro area the value of the index improved, but remained below the forecasts. The also published today figures on US consumer prices (CPI) were broadly within the predicted values and they support the US dollar one day before the interest rate decision by the Fed.
From the speech of Mario Draghi's today in Bologna more information was expected about the monetary policy stance of the European Central Bank. However, the ECB chairman remained at relatively general statements and made no further announcements. The euro regained strength and rose above 1.10 US-dollars.
On its meeting today the British central bank has left its key interest rate at as expected at 0.5%, the program for the purchase of securities will also remain unchanged. The Swiss National Bank, however, has not ruled out a further reduction in the prime rate. The euro, issued by negative numbers to the French consumer price inflation, lose some of its gains of the recent days, and again falls below the mark of 1.10 US-dollars.
The today data released for the growth of Chinese economy show once again the cooling down of the Chinese economy. The international stock markets are worried about continued decline in China's economic growth. The Euro Stoxx 50 fell 0.9 percent and the German DAX lost around 1.5 percent. Also, the Australian Dollar fell by 0.9 percent to date, since China is a major trading partner of Australia.
The increase in production of German industry in October was less than expected. While still showing a slight increase of 0.2%, it remains to half a percentage point below expectations of analysts. After the positive numbers last week supported the Euro, less positive numbers triggered losses today, since the weak investor confidence in the single currency continues.