Wall Street's interest rate gloom

Article Abstract:

US interest rates look likely to fall, but this may not help stock prices. Interest rate falls may be related to recession or wider problems in financial markets. Long-Term Capital Management has collapsed, and this could be a symptom of wider problems. Lower rates could also mean greater vulnerability for the US dollar. Investors may also have taken lower rates into account, so they may be built into stock prices. There may be expectations that rate cuts will be reversed, though this is less true of the United Kingdom than it is of the US.

Interest Rates

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Wall Street freaks out on fears of higher interest rates

Article Abstract:

US equities have moved into oversold territory and major players are absent in Aug 1999. Surveys indicating a strong performance by business lead to concern among those involved in the market, who fear that interest rates could be raised. Increased economic growth rates could help push up the price of cyclical stocks, but they tend to be sold due to concern that the cost of money could increase, since inflation is not generally expected to return. There is also concern that growth stocks cannot easily hold margins boost the top line.

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Bullish on Wall Street

Article Abstract:

A more encouraging environment may be developing for US equities in 1995, according to Merrill Lynch. This could mean that US equities start to perform better than markets elsewhere, as inflation fears recede, the dollar bottoms and US long bond prices bottom. Tightening of US monetary policy will follow a slowdown in the US economy, while elsewhere, in Europe, interest rates continue to rise. Equities are appearing choppy in Europe, leaving US shares looking better by contrast.

Securities & Commodities Exchanges

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Subjects list: United States, Stock-exchange, Stock exchanges, Exchanges, United States economic conditions
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