Thursday November 5, 01:42 PM
STOCKS NEWS US-Odds of rate hike by April falls after FOMC
Stocks on the move
Real (Frankfurt: BJU.F - news) -time Equity news
U.S. stock market report
0811 EST 05Nov2009-Odds of rate
hike by April falls to 36 pct after FOMC
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Following the very dovish statement from the Federal Reserve, the odds of a
25 bps rate hike by April have fallen to 36 percent from 54 percent yesterday
and the odds of a hike by June have fallen below 100 percent for the first
time, Peter Boockvar, equity Strategist at Miller Tabak + Co, said in a note.
In response, inflation expectations 10 years out have risen to 2.12
percent, up from 2 percent just a week ago and are at the highest level since
August 2008. Boockvar added, the Bank of England left rates unchanged as
expected and raised the total size of their asset purchases by 25b pounds but
that was less than expected. The BoE expected inflation to rise sharply above
the 2 percent target in the near term in part due to higher energy prices and
the pound is higher in response. The European Central Bank also left rates
unchanged after Euro region retail sales unexpectedly fell in Sept.
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