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Fed rate hikes will bring these effects

Fed rate hikes will bring these effects

Fed rate hikes will bring these historically against the us, the Fed raised interest rates after a month, a weaker US dollar index in the first quarter compared to the situation, suggesting investors for the dollar would be more cautious, after the rate hike will also silence after most experience is expected to deliver.

United States business site Daily FX commentary said, after raising interest rates is likely to let the market disappointed with dollars. United States stock market analysis, historical data, 83, 88 two rounds of rate hikes have changed the stock market rose for the first time, this may be related to United States related to high growth of the economy. But in the three rounds of interest rates for the first time since 1994, United States index p 500 and the Dow Jones industrial average interest rates before and after a month, a quarter were in decline, only representatives of NASDAQ has advanced technology and innovation to achieve modest gains.

thus, overall, the hike relatively negative short-term impact on the stock market, and after the move reflected more clearly in the long run, if interest rates slow rhythm, along with the late United States economy continued to improve, the expectation corporate profits rebounded, stocks could turn for the better.

Yuan exchange rate also, due to 1994-2005 July Yuan exchange rate and dollars linked, cannot from history data judge Yuan exchange rate for first raised interest rates of reaction, but reference early dollars stronger Shi Yuan exchange rate obviously vulnerable, and in dollars index fell back 100 following Hou Yuan and has appreciation of situation view, if dollars index as history situation in raised interest rates Hou has go weak, so Yuan will not faced larger of devaluation pressure.

China's stock markets for China, in three rounds of interest rates for the first time since 1994, index within 1 month after the first rate hike is down, raising interest rates for the first time after a poor performance in the quarter, but this may be more closely related to China's domestic factors because in 1994, 2004, even before the Fed rate hike Shanghai stock index is also in decline.