European Stocks Called Lower as Investors Trim Risk After Fed Rate Hike

European Stocks Called Lower as Investors Trim Risk After Fed Rate Hike

The benchmark lending rate was lifted by a quarter percentage point to a target range of 1 per cent to 1.25 per cent. It was only the third hike since Fed chair Janet Yellen had ended the flatline interest rate policy that followed the severe financial crisis which broke out 10 years ago.

With GDP growth expected to remain above its long-term potential over the next few years, and the unemployment rate to remain below its long-run level, the Fed as a whole seems to be willing to look past what it sees as near-term economic noise.

Interest rates are seen rising one more time by the end of this year, according to the median projection of the forecasts released with the Fed's policy statement, in keeping with the previous forecast. "Household spending has picked up in recent months, and business fixed investment has continued to expand".

But coming on a day when the consumer price index and retail sales fell, in large part due to falling food and gasoline prices, but with widespread declines in other categories, some economists are saying the Fed is no longer basing its decision on the data, as it has repeatedly said. Yesterday, the Fed hiked rates for the second time this year and hinted at curtailing quantitative easing to reduce the current $4.2 trillion portfolio in Treasury bonds.

"The Committee now expects to begin implementing a balance sheet normalization program this year, provided that the economy evolves broadly as anticipated".

Confederations Cup :European Champions,Portugal cruise into semi-finals
Marinovic made impressive saves to deny Ronaldo, Andre Silva and Nani but was powerless stop Andre Silva or Nani late in the game. Portugal top Group A with seven points, with Mexico ending in second place on goal difference to join them in the semis.

Against its Japanese counterpart, the dollar shrugged off earlier losses and was flat at 109.55 yen, above Wednesday's eight-week low of 108.81 yen.

Yellen told reporters that the Fed wants the balance sheet contraction "to run quietly in the background over a number of years".

By contrast, the European Central Bank last week poured water over expectations that it would start to roll back its own huge money-printing programme or raise interest rates in the near future.

The dollar fell against a basket of currencies on Wednesday, after a pair of economic reports undershot expectations triggering concerns about a slowdown in the USA economy ahead of a widely expected interest rate hike from the Federal Reserve.

The rate hike was widely predicted and therefore market participants were more interested in the Fed's statements about the balance sheet unwind. President Trump has sent mixed messages over the past year about Yellen's performance leading the Fed. The board expects to raise rates at least three times this year. He billed his plan as a way to accelerate economic growth from the sluggish 2.1 percent annual rate of the past eight years.

Related News:

  • Saudi Arabia: A Dramatic Reordering Of Succession

    Saudi Arabia: A Dramatic Reordering Of Succession

    The prince is now " de facto ruler of the kingdom", said Andreas Krieg of the Defence Studies Department at King's College London. The newly minted crown prince built his reputation as a bold reformer. "I will never do without your advice".
    Some US States Relax Restrictions On Cladding Suspected In Grenfell Tower Fire

    Some US States Relax Restrictions On Cladding Suspected In Grenfell Tower Fire

    The government has called on all building owners, public and private, to submit samples of their cladding material for testing. A total of 79 people are feared dead after the blaze destroyed 151 homes in the Kensington tower block.
    Trump questions Obama's response to 'election meddling by Russia'

    Trump questions Obama's response to 'election meddling by Russia'

    He also, according to the Post , authorized a plan to place cyberattack implants in the systems of critical Russian infrastructure.
  • Markelle Fultz preferred 76ers over Celtics because of Chick-Fil-A

    Kelsey Plum, left, waits with friends and relatives for the start of the WNBA basketball draft, Thursday, April 13, 2017, in NY . Magic Johnson made a decision to stay home and drafted Lonzo Ball from out of UCLA with the #2 pick.
    Angel Di Maria agrees to deal in Spain tax fraud case

    Angel Di Maria agrees to deal in Spain tax fraud case

    Ronaldo is yet to comment on his future after claims he wishes to leave Santiago Bernabeu emerged last week. Mascherano was also convicted of tax fraud last year and was given a suspended one-year sentence.

    Two detained over brawl during Erdoğan's United States visit

    Newsham said video showed security guards and some Erdogan supporters attacking a small group of protesters. Erdogan's bodyguards have become violent on several other occasions on USA soil.
  • Rain From Tropical Storm Forecast in W.Va.

    Rain From Tropical Storm Forecast in W.Va.

    Tropical Storm Cindy moved inland over southwestern Louisiana near the Texas border before sunrise Thursday morning. Those thunderstorms could cause isolated flash flooding, but forecasters say widespread flooding is unlikely.

    Portugal, Mexico, Russia tussle for semi berths

    New Zealand played on, went down the other end and almost scored, with the Mexicans urging their opponents to stop the game. We are only concentrating on New Zealand . "We do not worry about what happens in the other group".
    Presidential polls: Ram Nath Kovind to seek support in Lucknow tomorrow

    Presidential polls: Ram Nath Kovind to seek support in Lucknow tomorrow

    Apart from that, regional parties such as the AIADMK, BJD, TRS and JD (U) have thrown their weight behind Kovind. He also said that he would do everything to maintain the dignity of Indian President's post.
  • Indian PM Modi visits Portugal on trip to meet with Trump

    Indian PM Modi visits Portugal on trip to meet with Trump

    During the visit, PM Modi was seen interacting with his Portuguese counterpart Antonio Costa at Necessidades Palace in Lisbon . Prime Minister Narendra Modi and Prime Minister Antonio Costa today jointly visited the Champalimaud Foundation in Lisbon .
    Thomas Bryant drafted in second round by the Lakers

    Thomas Bryant drafted in second round by the Lakers

    He also stated to Lonzo that he expects a Ball jersey to be hanging on their wall of legendary players. Right after Lonzo was selected by Los Angeles , Ball , as usual, had something to say.
    Understanding Congressional Confusion on Health Care

    Understanding Congressional Confusion on Health Care

    That was a significant part of the decision to spend $1.5 million, Community Catalyst Executive Director Robert Restuccia said. The bill passed by House Republicans last month would phase out in 2020 a Medicaid expansion to additional low-income people.


Most liked

Tropical Storm Brings Pink Flamingos to Gulf Coast
As far as the Red River Radio Listening area is concerned, Tropical Storm Cindy is expected to move into the area later today. In addition to dropping massive amounts of rain, Cindy spun up tornadoes in several states, including near Birmingham, AL.

Mueller and Comey not as close as Trump and others suggest
Trump said, saying "we are just getting started" on major changes to the VA, one of his central campaign promises in 2016. Legal experts say whatever connection they do have doesn't come close to meriting Mueller's removal as special counsel.

Police officer lynched, Mehbooba calls it 'murder of trust
His colleagues wept bitterly as the paid their last respects at a wreath ceremony held at Srinagar's police lines. As part of rules, policemen posted in the security wing do not wear uniform.

Blazers trade up to get Gonzaga's Zach Collins
In addition to their own pick , the Blazers also controlled the selections of the Memphis Grizzlies and the Cleveland Cavaliers. The Blazers were looking to move up in the draft and Sacramento wasn't really thrilled with anybody available at their spot.

What does Sixers' Markelle Fultz think of comparisons to Rockets' James Harden?
Fultz, who was selected first overall by the Philadelphia 76ers , doesn't have his own brand like fellow draftee Lonzo Ball . Fultz was a bit of a late bloomer, failing to make his high school's varsity team his freshman and sophomore years.

Americans are more likely to believe James Comey over Trump
Trump said, saying "we are just getting started" on major changes to the VA, one of his central campaign promises in 2016. Mr Trump has seized on that statement as vindication, though the investigation continues, as do congressional inquiries.

Macron wins strong parliamentary majority, estimates show
The win of an absolute majority in the French National Assembly by Macron's party REM was welcomed by France's No. 1 ally Germany. The increase in women lawmakers will help France rise from its lowly 64th place in the global Inter-Parliamentary Union rankings.

Sukma: Two security personnel killed, three injured in Naxal encounter
Police said the body of the slain Maoist has been recovered from the encounter spot. Police officials estimate that the number of injured will increase.

Portugal's Santos and Ronaldo criticise St Petersburg pitch
Portugal are aware that only one point is needed from this game to guarantee qualification for the semi-finals of the competition. We will move on, dust ourselves down and prepare right for Portugal ".

Spicer: Chances of Senate health care bill passing are 'very high'
McConnell, eager to approve the legislation next week, indicated he was open to changes before it reaches the Senate floor. That would focus the aid more on people with lower incomes than the House legislation, which bases its subsidies on age.

New details of Russian Federation election hacking raise questions about Obama's response
The assumption that [Hillary] Clinton would win contributed to the lack of urgency. And some on the left and from his administration are beginning to say as much.

Trump Admits Russia Interfered In The Presidential Election And Blames Obama
The Justice Department, meanwhile, is now conducting a special investigation involving in part whether Mr. They believe that Moscow pulled back on any possible plans to sabotage USA voting operations.

Quake kills woman on Greek island of Levsos
Witnesses in Izmir , Turkey's third-largest city, said the quake was felt in the city centre and caused alarm among residents. The quake also hit the nearby Greek island of Lesbos , where a 43-year-old woman was killed and 15 other people were injured.

Hilary Duff's ex-husband Mike Comrie will not be charged with rape
Since rape allegations against Comrie emerged earlier this year, he and ex-wife Duff have been seen together multiple times. Prosecutors obtained an audio recording from the woman's phone, which she recorded after a second consensual encounter.

From Public Protests to Internal Opposition: Will GOP Health Bill Survive?
Heller said it is a "lie" that the Senate Republican health care bill would lower premiums. Here's Washington Democratic Senator Maria Cantwell.