Three Interest-Rate Hikes
After FOMC meeting held in the end of January, the volatility in global markets heightened since February. Markets concerned about the Fed’s statement and the uptrend of inflation potential for four interest-rate hikes (vs markets expectancy of three interest-rate hikes). The concerns heightened as the government bond yield consistently hit the level of 2.9%.
Consistent Downtrend of Dollar to Support Fed’s Monetary Stance
The downtrend of dollar triggered the uptrend of inflation, and succeeded in subduing pressure on the U.S. domestic manufacture product competition. Since the mid of 2017, the U.S. PMI manufacture index hiked aggressively, while its competitor, China experience a stable trend.
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