Profile image
By Midas Letter (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

S&P/TSX Composite index (OSPTX) Fed Interest Rate Hike in March in Doubt

Monday, March 20, 2017 20:11
% of readers think this story is Fact. Add your two cents.

(Before It's News)

The S&P/TSX Composite index (INDEXTSI:OSPTX) higher close yesterday on an improving oil outlook may be jeopardized today should the Fed adhere to its plan to raise rates by a quarter of a percent at its March meeting. While the consensus is that the Fed will pause its policy launched in December of raising rates toward a full percentage point, the outcome is far from certain. There is however good reason to expect that their absence of movement will be perceived by the market as a tacit admission of starting the rate hike process too early.

The SSE Composite Index (SHA:000001) in Shanghai closed down half a percent to 2,735.56 as oil persisted in a range between $30.20 and 30.80 for much of the session, and the economic picture for China remained bleak.

Gold’s continuing strong performance is indicative of a widespread perception that it may now be perceived as the ‘safe haven’ asset globally, since the U.S. Dollar’s future is clouded by the Fed’s inability to keep it from rising against other currencies uncontrollably. Already, Canada is facing a recession as the combined influence of a severely contracting mining and oil and gas industries drive unemployment higher – especially in the western provinces.

The question as to whether or not the situation will evolve to finally cause prices to reverse in Canada’s perennially overheated real estate market remains to be seen.

In general markets are expected to open lower today and will likely remain relatively quiet until the FOMC announcement this afternoon at 2 pm Eastern Time. New home sales figures are expected at 10 a.m. ET this morning as well.

Star performers yesterday included Pengrowth Energy Corp (TSE:PGF), whose shares rose by 15 percent yesterday to close at $0.90 on volume of over 3 millions shares traded, and Bonavista Energy Corp (TSE:BNP).

Growth in world trade is slowing
as the slump in commodity prices and a faltering economy in
China combine to restrict shipments of manufactured items and
raw materials around the globe.

World trade volumes rose by just 1.5 percent in the three
months between September and November compared with the same
period a year earlier, according to the Netherlands Bureau of
Economic Policy Analysis.

The post S&P/TSX Composite index (OSPTX) Fed Interest Rate Hike in March in Doubt appeared first on Midas Letter.



Source: https://www.midasletter.com/2016/01/sptsx-composite-index-osptx-fed-interest-rate-hike-in-doubt/

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.