Reuters reported: The whole world seems to have hushed ahead of comments from Fed Chair Janet Yellen at the central bank's annual meeting in Jackson Hole on Friday. Investors still doubt the stars will align for a hike anytime soon, so a hawkish tone from Yellen would challenge that equanimity.
"Ever so slowly, the market does seem to be reluctantly acknowledging the chorus of senior Fed speakers who have suggested recently that a 2016 rate hike is still quite probable and September is 'live'," wrote analysts at ANZ in a note.
Markets are still not pricing in full point rate hike until September 2017. The odds of a hike later next month are also less than convincing to many investors and the leaves the focus next on December. Wall Street had a weak day on Monday with low volume as investors show continued concern
about the impact of weakening oil prices and the Fed's next move on interest rates in the coming months. False signals have become a staple of the Yellen-led Fed.
about the impact of weakening oil prices and the Fed's next move on interest rates in the coming months. False signals have become a staple of the Yellen-led Fed.
The Nikkei stock index was down 0.3 percent at 16,557.41 in late morning trade, dampened by the effects of a stronger currency, the Hang Seng off slightly at 22941.14, S&P ASX 200 up at 5555.1 and Shanghai positive narrowly at 3099.39. The dollar was down 0.1 percent at 100.22 yen, not far from levels under 100 yen touched last week. Gold traded at $1336. 80, down $1.80.
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