Wall Street braces itself
Article Abstract:
US interest rates could be raised in Jun 1999 and this could help stock prices since it may be interpreted as a move to pre-empt inflation. One solated rise in interest rates cab help stock prices and a rise in Mar 1997 was followed by a strong stock price rise for the year as a whole, though stock prices initially fell. More than one interest rate rise may be implemented however, since rates were only lowered in fall 1998 as a result of a world financial crisis, and market have since largely recovered.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Wall Street's twin nightmare
Article Abstract:
US stock prices have been volatile and they are affected by bond prices, which in turn are affected by concern that interest rates could rise. High stock prices have been linked to low bond yields, and stock prices could drop if yields rise. A rise in interest rates could, however, curb concern about inflation, which could help both bonds and stocks. Meanwhile, there is concern that cheap imports could push down the value of the US dollar, which could push up inflation.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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