He said that an improvement in USA indexes could indicate that the world’s economy is also recovering, which could eventually have a positive effect on the Korean financial market.
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US stocks moved between modest losses and flat trading Thursday, following mixed quarterly results from companies like Facebook and Whole Foods Market.
“This is all to say that perhaps the Fed is going to pull off what was once thought of as unachievable and (end near-zero interest rates) without blowing up the market”, said Kevin McNeil, USA rates strategist at RBS, in a note to investors late Thursday.
If economic data continues to point to growth and firmer prices, a December rate hike would be a “live possibility”, she said.
Solid payrolls data later in the session could seal the case for a December rate hike.
The decision by foreign investors to start moving their funds was based on Yellen’s comments, which hinted at an imminent interest rate hike, dealers said.
In a preview before tomorrow’s event, United States weekly unemployment claims were above estimates at 276,000, while preliminary non-farm productivity and unit labour costs quarter-over-quarter rose 1.6 and 1.4 percent respectively, while Challenger Job Cuts year-over-year in October stood at -1.3 percent.
Yellen said the Fed has implemented more-stringent requirements to require banks to hold “substantially larger amounts of high-quality capital” and to hold “a buffer of high-quality liquid assets sufficient to meet net liquidity outflows during a period of severe stress”.
The remarks come as fresh data on the vast USA service sector on Wednesday supported the view that the economy was on the upswing. Even the global economy is holding up better than many thought.
Asian shares were subdued Friday ahead of a U.S.jobs report that’s likely to influence whether the Federal Reserve raises interest rates in December. The dollar index rallied 0.7% and gold fell to its lowest level since 2 October.
Gold for December delivery on the Comex division of the New York Mercantile Exchange was last down $1.10 or 0.1 percent to $1,105.10 per ounce. 10-Year benchmark US Treasury bonds are now yielding 2.234%, a 1 basis point change from the previous day as from this writing.
The spectre of higher rates helped to boost the dollar against other currencies and precious metals.
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CURRENCIES: The euro rose slightly to $1.0873 from $1.0866 on Wednesday. WTI Crude oil declined 03.41% to $46.32 a barrel and Brent was down 4.03% at $48.58 a barrel. “There are certain aspects of the US outlook that are encouraging”.
