Stocks higher after Fed announcement

Stocks higher after Fed announcement 150 150 Realm

UK and European stocks have opened slightly higher this morning after the US Federal Reserve delivered its latest forecasts for the US economy. At the conclusion of its two-day meeting on Wednesday the Fed said it does not expect to be raising interest rates before the end of 2023. Real GDP growth is now expected to grow 6.5% in 2021 (up from an expectation of 4.2% in December) and inflation is anticipated to rise to 2.4% this year.

Following the announcement, the 10-year Treasury yield reached 1.67%, a 14-month high and equities rose.

The Bank of England is meeting today and is also expected to keep interest rates on hold.

 

Disclaimer:  ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’