Investors Are Adjusting Their Portfolios in Anticipation of Higher Interest Rates

Investors Are Adjusting Their Portfolios in Anticipation of Higher Interest Rates
Author:
Publish date:

This is what you need to know before markets open:

1. European stocks open higher Thursday as global investors begin adjusting portfolios in anticipation of higher interest rates after a series of policy tightening signals from major central bank presidents

2. The gains for both the pound and the euro -- which traded at 1.1398, the highest in more than a year, overnight -- helped push the U.S. dollar index to a nine-month low of 95.81 as investors bailed out of the greenback in search of both yield and diversification

3. Global oil prices edged higher in overnight trading, although gains were limited by ongoing concerns over the glut in crude supplies in the world's biggest economies, including the United States, where the Energy Information Administration said Wednesday stocks rose by xx barrels last week.

4. Wednesday's moves on Wall Street, however, should suggest a near-term rebound for the buck, given that benchmark U.S. Treasury yields rose 3 basis points to 2.23%, stocks booked healthy gains across the board and Federal Reserve Chairwoman Janet Yellen confirmed the FOMC's intention to gradually raise interest rates in order to deliver on its employment and price stability mandate.

5. Wall Street looks set to extend Wednesday's gains at the opening bell, according to early U.S. futures prices, with the Dow Jones Industrial Average likely to gain 40 points, or 0.20%, at the start of trading while the broader S&P 500 will likely add 0.22% to yesterday's advance.