Markets Fall on Opposing US UK News

Markets Fall on Opposing US UK News.

Last night US stocks closed lower as the US central bank, the Federal Reserve boss Janet Yellen, suggested that the US may increase interest rates as early as next month.

In addition, the US is yet again expected to hit its debt ceiling meaning that it can borrow no more unless approved by the Senate and could mean a shut down of government services, as happened just under two years ago. The renegotiation of the debt ceiling could yet again ‘go to the wire’.

Conversely, in the UK, the Governor of the Bank of England, published the Bank’s quarterly inflation report, with the UK and global economies slowing, reducing the risk of inflation and the Bank of England yet again freezing interest rates with the markets speculating that interest rates may not rise until mid next year.

Comment

So US investors are worried about the economy ‘hotting’ up, interest rates rising soon and UK investors are worried about World economies slowing down and interest rates rising too slowly. We expect a rollercoaster run until Christmas.