United States : US: Dollar, yields slide on Fed official rate talk
Nov 17, 2018 (Euclid Infotech Ltd via COMTEX) —
The US dollar weakened and Treasury yields slid on Friday after a top Federal Reserve official said US interest rates were near a neutral rate, while the S&P 500 ended positive after a seesaw session helped by optimism over US-China trade ties.
Oil prices steadied but still posted their sixth straight week of losses. Uncertainty over Britain’s exit from the European Union clouded currency and other markets.
Markets were shaken by comments made by Richard Clarida, newly appointed Fed vice chair, in a CNBC interview that US interest rates were nearing Fed estimates of a neutral rate, and being at neutral “makes sense.”
He also said there was “some evidence of global slowing.”
While the Fed is widely expected to raise rates in December, the number of hikes next year is a matter of debate.
“The big driver right now is Fed speech,” said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott in Philadelphia. “Clarida indicated a modestly dovish bent on Fed policy, and not a particularly aggressive stance.”
On Wall Street, the Dow Jones Industrial Average rose 123.95 points, or 0.49 per cent, to 25,413.22, the S&P 500 gained 5.94 points, or 0.22 per cent, to 2,736.14 and the Nasdaq Composite dropped 11.16 points, or 0.15 per cent, to 7,247.87.
Mr Clarida’s comments helped support stocks, which were also boosted by comments from President Donald Trump on trade.
Mr Trump said he may not impose more tariffs on Chinese goods after Beijing sent the United States a list of measures it was willing to take to resolve trade tensions.
“The market is paying attention very closely to anything surrounding trade,” said Veronica Willis, investment