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Shares rise, dollar slips as markets pare Fed rate risks

Created at 17 Aug · 10:41 AM2 sources↑ Market-relevant2 events
IN SHORT

Global shares edged higher and the U.S. dollar declined as soft economic data reduced expectations for an imminent Federal Reserve rate hike. Brent crude oil prices increased.

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Key Numbers

$89.42Brent crude price per barrel

Who's Involved

Federal Reserve
Central bank whose rate hike expectations were reduced

↳ Why This Matters

Reduced expectations for Federal Reserve rate hikes can influence borrowing costs, investment decisions, and currency valuations globally, while also impacting commodity prices.

Key facts

  • Global shares edged higher following soft U.S. economic data.
  • The U.S. dollar declined to its lowest point since June.
  • Market expectations for an imminent Federal Reserve rate hike decreased.
  • Brent crude oil prices increased by 1% to $89.42 per barrel.

Global shares saw a slight increase, and the U.S. dollar weakened to its lowest point since June. This movement followed the release of soft U.S. economic data, which led markets to pare back expectations for an imminent interest rate hike by the Federal Reserve. Oil prices experienced mixed performance after recent gains, with Brent crude rising 1% to $89.42 per barrel. A hike next month is now priced at 30%, down sharply from about 50% a week earlier, according to the CME Group's FedWatch tool.

Frequently asked questions

Soft U.S. economic data reduced market expectations for an imminent Federal Reserve rate hike, leading to the dollar's decline.

Global shares edged higher following the release of the economic data.

Oil prices were mixed after recent gains, with Brent crude rising 1% to $89.42 per barrel.

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Cadence
CME Headlines
  • Yield curve shifts and Fed minutes set the stage for.
    14 Aug · 8:47 PM
  • Yield curve shifts and Fed minutes set the stage for.
    14 Aug · 8:47 PM
  • Yield curve shifts and Fed minutes set the stage for.
    14 Aug · 8:47 PM

How It Developed

Global shares rose and the dollar fell due to soft U.S. economic data reducing bets on an imminent Fed rate hike.
Global shares edged higher and the U.S. dollar slipped towards two-month lows after soft U.S. economic data reduced bets for an imminent rate hike from the Federal Reserve.

Sources

T1
Shares steady, dollar slips as markets pare Fed rate risksPiQSuite
T1
Shares rise, dollar slips as markets pare Fed rate risksPiQSuite

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