US stocks riding into sunset of low-interest era
Strong jobs data gives Fed more ammunition for rate hike along with winding-down of its balance sheet
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WE are about to find out whether the bull market can outlive the low-interest-rate era and, possibly, the era of globalisation.
US stocks were more or less flat last week as a strong jobs report forced traders to accept that ultra-low interest rates would soon be a thing of the past. There is likely to be further weakness this week unless industrial, consumer or second-quarter earnings data steer central bankers away from a tightening policy.
The US economy added 222,000 jobs in June, bounding over economists' expectations, even as the unemployment rate ticked up to 4.4 per cent - though that was primarily a function of more potential workers identifying themselves as job-seekers.
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