FED Interest rate most likely to be hiked on June 15

ARCHIVE
19 May, 2016


Stock Market Today by Shailesh Saraf – 19th May 2016
Indian Market Outlook:
FED interest rate most likely to be hiked from 25 bps to 50 bps in the scheduled June 15 FED meeting. On the backdrop of confirmation of US FED rate hike expectation in the June meeting, Nifty after testing its resistance at 7950 on 17th may is opening 30 points gap down from yesterday's close at 7850 today.The FOMC meeting minutes that were announced yesterday revealed that, “most Fed officials saw a June hike likely if economy warranted.” Moreover, the US 3 month T bill yield has been steadily rising since the last few days rising from 0.18% on 5th to 0.30% made on 18th may , this spurt is yield was last seen on 6th November 2015 which was an indication to the last rate hike occurred in December. A similar phenomenon is occurring now which gives clear indication that there might be rate hike in the June Meeting.International Market Outlook
The greenback- Dollar ripped higher after the minutes revealed that, “most Fed officials saw a June hike likely if economy warranted.” Oil prices fell on Thursday, pulled down by rising U.S. crude inventories, a stronger dollar and surging output from Iran to Europe and Asia.