Dec 16, 2016 | Investment Advice

International News (Issue 430) – 16 December 2016

On the international front this week all eyes were on the Federal Reserve meeting and the anticipated 0.25% rate hike we ultimately saw.

What surprised some in the market was the hawkish attitude of Fed members who now on average saw a total of 3 x 0.25% rate hikes in 2017, up from 2 and still well ahead of market expectations nearer to 1.

Bond yields continued to push higher after the Fed spoke of some ‘strengthening’ toward is growth and inflation goals. The rise in bond yields could increasingly pressure the run in equity prices and is worth watching with the S&P at record levels and 8% higher than it was pre the election.

In China, equity markets began to weaken after more evidence of a slowing in China’s property price rises occurred in November, and as domestic interest rates continue to push higher in response to faster growth and heavy fiscal spend.

 IndexChange%
U.S. S&P 5002262+16+0.7%
London’s FTSE6999+67+1.0%
Japan’s Nikkei19273+508+2.7%
Hang Seng22059-803-3.5%
China’s Shanghai3117-98-3.0%

 

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