European markets welcome Federal Reserve’s US interest rate rise

[rooster59]

European markets welcome Federal Reserve’s US interest rate rise



European shares surged on Thursday following the US Federal Reserve’s interest rate rise, as investors took the move as a sign of confidence in the world’s biggest economy.

Markets in London, Frankfurt and Paris were all up amid talk of an end of year rally. The euro fell against the dollar.

The Fed made it clear that the quarter-of-one-percent hike was the beginning of a gradual tightening cycle.

“It was very well received mostly because it had been expected. And the expectations management had been excellent and financial markets like that, when you fulfil really the expectations. This rate move is quite smooth and had been well received,” said David Kohl, Chief Economist for Germany for the Swiss Bank Julius Baer.

The car industry, banking and insurance were among sectors which gained after the rate hike.

But the prices of major industrial metals fell: the stronger dollar makes them more expensive for holders of other currencies.

It’s thought that come the New Year, markets may again turn volatile in anticipation of the next rate rise.

-- (c) Copyright Euronews 2015-12-19

[bazza40]

It's still the game of pea and thimble. If it took the Fed 7 years to raise interest rates a measly 0.25%, what's the expectation of when the next one will occur?

[elgordo38]

Well the euphoria only lasted one day. The Euro suffers from a higher dollar and more Euro's will take flight to the USA so what is there to cheer about or is a case of lets just cheer about something in a world where there is not a whole lot to cheer about. First they dreaded a rate hike now they cheer go figure. What a lopsided world we live in. As I age more it just seems to get more ridiculous. But as I age and look back into the past I fully realize that this must end badly. Charles Ponzi should he be alive today would surely look around in amazement at how his scheme had been perfected by governments and big business. We live in a "never give a sucker an even break" world.

Edited December 20, 2015 by elgordo38

[SOTIRIOS]

....insane....