Stock Market News for July 13, 2017

Bruno Cirelli
Luglio 14, 2017

The inflation-adjusted gross domestic product is estimated to have increased at an annual rate of 1.5 percent in the first quarter, and she said "more-recent indicators suggest that growth rebounded in the second quarter".

THE QUOTE: "A coordinated jump for global equity markets following the considerably dovish tone from Federal Reserve chair Janet Yellen's Congressional testimony sets Asian markets for gains today", Jingyi Pan of IG said in a commentary.

The bellwether Philippine Stock Exchange index (PSEi) ended nearly flat, inching down 0.01% or 1.52 points to 7,936.85.

In recent months U.S. inflation has moved further below the Fed's 2 per cent target even as the labour market, as measured by a 4.4 per cent unemployment rate, has strengthened.

And to keep more hopes alive for lower rates rather than higher ones, at least by historical standards, Yellen said that the longer-run neutral fed funds level most likely will remain under levels of the prior decades.

She confirmed the Fed would "later this year" start unwinding the massive $US4.5 trillion ($5.86 trillion) worth of bonds in its balance sheet. The Fed is now expected to raise interest rates once more this year, most likely in December, and announce plans to start reducing its roughly $4.5 trillion balance sheet following years of US Treasury and Mortgage Backed Securities purchases. Providing the most support was a strong performance in the retail sector, mostly led by a 4.8 percent gain in shares of Target stock. In short, it doesn't seem like she is convinced that inflation will rise high enough to make hiking interest rates an urgent priority (paywall).

The dollar index was down 0.05% at 95.68 ahead of European trading. - AFP picTOKYO, July 14 ― The dollar was little changed against a group of peers early today, as currency investors remained cautious ahead of USA inflation data due later in the session, which is expected to set the greenback's near-term direction. "The last decade, something like 1.1 percent", Yellen said, adding that labor force growth is also on the decline, which would pose a challenge. DBS Group and United Overseas Bank rose 2.1% and 1.5%, respectively, while Jardine Matheson Holdings climbed 2%.

"There wasn't too much to take away from Fed chair Yellen's testimony to Congress".

New Zealand's two-year swap rate fell 4 basis point to 2.25 percent, and 10-year swaps fell 4 basis points to 3.32 percent.

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