Many other policymakers think the US job market is near full strength and Fed Chair Janet Yellen argued in July the case for rate increases has strengthened.
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The remarks come a week before U.S. policymakers are due to review interest rate policy, with markets lingering in uncertainty as to whether the Fed will resume a course of rate hikes it had embarked on in December.
U.S. stocks racked up their strongest gain in two months on Monday, with the Dow rising 1.3 per cent and the S&P 500 gaining 1.5 per cent.
Germany’s 10-year bund yield fell three basis points, or 0.03 percentage point, to 0.01 percent as of 1:10 p.m.in London. Hong Kong’s Hang Seng added 0.8% and Shanghai bucked the trend to lose 0.2%.
Next Wednesday and Thursday is the Federal Open Market Committee meeting, where members of the committee with vote on whether to raise interest rates this month, as well as release forward-looking guidance on the US economy and future expectations of interest-rate adjustments. The S&P 500 was up 31.23 points, or 1.47 percent, to 2,159.04.
“Interest rate expectations corrected accordingly” and helped set a price floor, which will likely remain supported until inflation numbers this Friday, he said.
Traders are betting the Fed won’t make a move on rates in September.
Sterling weakened 0.6 percent to US$1.3249 after slightly softer-than-expected United Kingdom inflation data. But the more interesting release this time is from PPI’s input prices which is forecasted to show a huge spike of 8.1% in August compared to 4.3% in July, making the case harder for BoE to continue loosening monetary policy when the central bank meets on Thursday.
Despite Brianard’s dovish remarks, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.08% at 95.20.
In the global bond market, the recent sharp rise in yields was halted for now after Brainard’s comments. Brent crude, the benchmark for worldwide oil trading, climbed 11 cents to $48.12 a barrel in London. Brent crude, the benchmark for global oil trading, lost 88 cents to $47.44 a barrel in London.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.6%.
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Exxon Mobil sank $1.96, or 2.2 percent, to $85.33 while Chevron shed $2.28, or 2.2 percent, to $99.97 and Marathon Oil stumbled $1.10, or 7.1 percent, to $14.38. News last week may have helped lift oil prices back towards the August highs but this data once again adds to the bearish case for oil, regardless of any “cooperation” between Saudi Arabia and Russian Federation. The yield on the 10-year Treasury note rose to 1.72 percent from 1.67 percent. The FTSE 100 index of leading British shares was down 0.3 percent.
