Equity market: US stocks rise on Fed rate hike talk

PARIS: US shares rose slightly Monday with investors’ mood buoyed by hints from the US Federal Reserve of an interest rate hike because of strong growth. Elsewhere, traders seemed less certain with most world stock markets dipping as they tried to second-guess the Fed’s timing of its next rate rise. In a much-scrutinised speech, Fed chief Janet Yellen on Friday hinted at a US interest rate rise by the end of the year. Yellen said a pick-up in the world’s top economy and an improvement in the jobs market meant “the case for an increase in the federal funds rate has strengthened in recent months”. She gave no timeframe during her speech at the annual Jackson Hole symposium of global central bankers, but Fed vice chairman Stanley Fischer later said September was a possibility.

Published in The Express Tribune, August 30^th, 2016.

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