Heavy investors on Wall Street have invested 2 billion to 100 billion dollars in the belief that the interest rate should be up. It corresponds to 19 400 billion, or more than four times Sweden’s GDP.
The bet amount on the so-called eurodollarterminer during the last week was the highest since 2014, said Cheng Chen, räntestrateg at TD Securities, the Wall Street Journal.
the Market has for some time become increasingly confident that the Federal Reserve raises its key interest rate in december. Now is the bombproof: pricing in the Fed futures indicate that the likelihood of increased interest rates, is 95 percent.
at the same time, have Donald Trumps valvinst also touched on interest rates with long maturity when the market forecasts that inflation should accelerate. The 10-year u.s. interest rate is currently 2.32%. Just four months ago, shortly after the Brexit vote was tioårsräntan 1,37%, which was the lowest level ever.
The new situation is not without risks. The rising u.s. dollar and higher u.s. interest rates could put pressure on emerging markets, where since the 2008 financial crisis, has become increasingly common to loans be in just dollars.
“we Will get yet another round of the China-panic? So far, things look to be in order, but the risks are out there,” said Blake Gwinn, räntestrateg at RBS Securities, to the Wall Street Journal, in a reference to aktiekrascherna in China last summer and January this year.
Eurodollarterminer has despite the name, don’t do anything with the currency pair euro and the dollar to make. Instead, the term underlying asset short deposits in dollars in countries outside the US where the semester increases in value if the u.s. tremånadersräntan rises.
No comments:
Post a Comment