The attacks in the Belgian capital on Tuesday are unlikely to have a long-term impact on markets, but they could result in new roadblocks to cross-border commerce and lend momentum to Euro sceptics, analysts told CNBC. European stocks were under pressure but had come off their lows following deadly attacks at Brussels main airport and on the city’s metro system. U.S. equities were mixed by late morning.
- Dollar Rises as Risk Appetite Returns After Brussels Attacks – Reuters
- Yen and Swiss franc gain as Brussels explosions spur safety flows – Reuters
- Pound Falls on Fears of Anti-EU Backlash After Brussels Attacks – The Wall Street Journal (subscription)
Two Federal Reserve officials said interest-rate increases may be warranted as soon as the central bank’s meeting next month, citing solid readings on the U.S. economy despite headwinds from abroad.
People’s Bank of China Governor Zhou Xiaochuan sounded a warning over rising debt levels, saying corporate lending as a ratio to gross domestic product had become too high and the country must develop more robust capital markets.
Asian shares edged higher on Friday, oil touched a 2016 high and the U.S. dollar weakened as investors turned more positive on riskier assets after the Federal Reserve’s cautious stance on further interest rate increases.
- S. Oil Prices Hit $40 a Barrel, Extending Recent Rally – Wall Street Journal (subscription)
- Do Not Assume Dollar Slide is Relentless – Financial Times (subscription)
The Federal Reserve won’t raise interest rates this week, but will likely make clear that as long as U.S. inflation and jobs continue to strengthen, economic weakness overseas won’t stop rates from rising fairly soon.