Which came first: The dove or the egg? Perhaps a better question, following a midweek sell off in equities, is which is more important: The moment at which the FOMC starts to lift short-term interest rates, or the trajectory for the future path of rates?
Many of us know the “January Effect," also referred to as the “January Barometer,” refers to the belief that equity market performance in the month of January will predict how the market will perform throughout the year. It appears to no longer work.
U.S. equity-index futures gained as jobless claims fell and earnings from 21st Century Fox Inc. and CenturyLink Inc. beat estimates. Bonds rose as the European Central Bank kept interest rates on hold, while Australia’s dollar led a decline in higher-yielding currencies.