INTEREST RATES – UNITED STATES

Is the yield play back in vogue?

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Original article by Jessica Sier
The Australian Financial Review – Page: 25 : 8-Jun-16

The low interest rate environment has prompted strong support for high-yielding Australian stocks. However. investors recently began selling yield stocks amid expectations of several interest rate rises in the US during 2016. Citi Global Markets’ Karen Jorritsma notes that yield stocks will be back in favour following the release of the latest US jobs data, which will dampen expectations that the Federal Reserve will increase the cash rate.

CORPORATES
CITIGROUP PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, SCENTRE GROUP – ASX SCG, SYDNEY AIRPORT – ASX SYD, TRANSURBAN GROUP LIMITED – ASX TCL, APA GROUP – ASX APA, KATANA ASSET MANAGEMENT LIMITED, DEXUS PROPERTY GROUP – ASX DXS, MIRVAC GROUP – ASX MGR

Easy money era coming to an end

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Original article by Vesna Poljak
The Australian Financial Review – Page: 1 & 10 : 18-Dec-15

The Australian sharemarket rose on 17 December 2015, in response to the US Federal Reserve’s decision to increase interest rates from historic lows. However, the Australian dollar lost ground in local trading, while the US dollar gained 0.95 per cent. Meanwhile, the Federal Reserve has given indications that there could potentially be four interest rate increases in 2016, although Mark Bayley of AquAsia has questioned whether there will be scope for such aggressive monetary policy tightening. Many analysts believe that two rate rises are more likely.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, AQUASIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, SCHRODER INVESTMENT MANAGEMENT AUSTRALIA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WELLS FARGO BANK

US stocks rise on Fed rate hike

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Original article by Chelsey Dulaney
The Australian – Page: Online : 17-Dec-15

The US Federal Reserve has increased the federal funds rate by 25 basis points at its monetary policy meeting in mid-December 2015. It is the first rise in US short-term interest rates since December 2008. Investors will now be seeking guidance from Federal Reserve chair Janet Yellen on the likely timing of further rate increases. The move to tighten monetary policy has bolstered Wall Street, while the gold price and the US dollar have also risen.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, NASDAQ COMPOSITE INDEX, O’NEILL SECURITIES, NEW YORK STOCK EXCHANGE, EURO STOXX 50 INDEX

US dollar bull run not over as world monetary policy splits

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Original article by Mark Mulligan
The Australian Financial Review – Page: 32 : 25-Nov-15

The Australian dollar was buying around $US0.72 late in trading on 24 November 2015, after reaching an intra-day low of $US0.7159 in the previous session. PIMCO portfolio manager Luke Spajic anticipates further support for the US dollar in the current monetary policy environment, with the Federal Reserve poised to increase interest rates and many other central banks likely to reduce interest rates. There is growing expectation that US interest rates will rise in December.

CORPORATES
PACIFIC INVESTMENT MANAGEMENT COMPANY LLC, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, EUROPEAN CENTRAL BANK, RBC CAPITAL MARKETS

Forget China, bigger risk for local shares on the horizon

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 35 : 17-Nov-15

Hasan Tevfik of Credit Suisse warns that a rise in the global inflation rate would have a bigger impact on Australian sharemarket investors that an interest rate rise in the US or an economic slowdown in China. Credit Suisse notes that global bond yields would most likely rise if there is a spike in the US inflation rate, while Stephen Walters of JP Morgan expects the global inflation rate to rise after falling to 1.4 per cent in September 2015.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, JP MORGAN AUSTRALIA LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, CAPITAL ECONOMICS LIMITED

$A tipped below US70c by year end

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 20 : 9-Nov-15

The Australian dollar was buying $US0.7032 on the weekend of 7-8 November 2015, after dipping to $US0.7023. The currency was sold down in response to stronger-than-forecast growth in US jobs during October, which has heightened expectations that the Federal Reserve will increase the cash rate in December. Joseph Capurso of the Commonwealth Bank believes that the Australian dollar could be trading within the range of $US0.68 to $US0.69 by the end of 2015.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC

Fed leaves rates on hold, preps for potential December lift

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Original article by
The Age – Page: Online : 29-Oct-15

The Federal Reserve’s two-day policy meeting in late October 2015 has resulted in US interest rates being left unchanged. The central bank’s monetary policy statement noted that the US economy is expanding at a "moderate pace", while jobs growth has slowed. The statement omitted the previous month’s reference to the potential impact of global risks on the US economy. BlackRock’s Russ Koesterich says a rate cut remains possible in December.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, BLACKROCK INCORPORATED, FEDERAL RESERVE BANK OF RICHMOND, EUROPEAN CENTRAL BANK, REUTERS HOLDINGS PLC

Gold stocks take off after gloomy report on US jobs

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 31 : 6-Oct-15

Data showing that a lower-than-expected 142,000 jobs were created in the US during September 2015 has prompted a rally in the spot price of gold. It rose by 2.2 per cent to $US1,136 per ounce on 2 October, and in turn bolstered support for Australian-listed gold producers. Northern Star Resources rose by 5.9 per cent to a record $A2.85 on 5 October, while Newcrest Mining was 9.5 per cent higher at $A13.80. The jobs data has dampened expectations of a US interest rate rise in the near-term.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, NEWCREST MINING LIMITED – ASX NCM, EVOLUTION MINING LIMITED – ASX EVN, BEADELL RESOURCES LIMITED – ASX BDR, UNITED STATES. FEDERAL RESERVE BOARD, RBC CAPITAL MARKETS, IG MARKETS LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES GOLD INDEX, BANK OF JAPAN, EUROPEAN CENTRAL BANK, SUMITOMO GLOBAL RESEARCH

Get used to lower growth, returns

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 23 : 18-Sep-15

UBS Global Asset Management’s Tracey McNaughton believes that the US Federal Reserve should raise the cash rate in September 2015, but warns that financial markets may experience further volatility in the near-term regardless of its decision. McNaughton also says Australian investors can expect to receive lower returns in the future and should no longer rely on the traditional "set and forget" investment strategy.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, NIKKO ASSET MANAGEMENT GROUP

Fed urged to avoid panic with rate hike

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Original article by Jonathan Shapiro, Vesna Poljak
The Australian Financial Review – Page: 24 : 10-Sep-15

The US Federal Reserve is not expected to lift the cash rate in September 2015, with financial markets pricing in a 28 per cent chance. Kaushik Basu, chief economist at the World Bank, has expressed concern that emerging markets in particular are likely to experience an increase in volatility if the US tightens monetary policy.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, WORLD BANK, INTERNATIONAL MONETARY FUND, EUROPEAN CENTRAL BANK, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT