【今日短语】
fizzle out
to gradually become less successful and end in a disappointing way.
The threatened revolt just fizzled out.
Her parents are hoping that the relationship will fizzle out.
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原文如下：
The day in the markets
by George Steer
(来自：The Financial Time 金融时报)
What you need to know
• US stocks tick up as investors brace for Fed’s economic projections
• Central bank expected to ease pace of rate rises as price pressures cool
• Dollar slides with haven asset weaker as inflationary fears ease
Wall Street stocks rose yesterday with the US Federal Reserve poised to slow the pace of interest rate rises against a backdrop of cooling inflation.
Wall Street’s S&P 500 and Nasdaq Composite both added 0.5 per cent, consolidating a rally in the previous session after US consumer price inflation eased more than expected in November to its lowest level in almost a year.
US equities shot up in the hours immediately after the CPI figures were released on Tuesday but fizzled out later in the day as investors braced themselves for the Fed’s economic projections, which weer due to come out later yesterday.
“To what extent the [Federal Open Market Committee] focuses on the drop in inflation remains unclear but we suspect the message will be more about the length of time monetary policy will need to remain restrictive rather than on the timing of any pause in the tightening cycle,” said Derek Halpenny, head of research at MUFG.
Even so, a 0.5 percentage point rate hike would bring the Fed to within touching distance of the implied terminal rate of about 5 per cent, meaning a “pause” in rises may not be too far away.
The S&P 500 is on track for its biggest three-month gain since the second quarter of 2020, having risen roughly 12 per cent since the start of October, though some analysts doubt how long left the rally has to run.
“Given stocks don’t typically see a turning point until rate cuts are on the horizon, we still don’t believe a sustained rally is likely over the next three to six months,” said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management.
A measure of the dollar’s strength against a basket of six peers fell 1.1 per cent in the previous session and fell a further 0.2 per cent yesterday.
The dollar typically acts as a haven for investors during times of economic turbulence and has fallen about 8 per cent since hitting a 20-year high in late September as inflationary fears eased.
Short-term US government debt extended a rally with the yield on the two-year Treasury, which is particularly sensitive to interest rate expectations, down 4 basis points to 4.18 per cent.
Elsewhere in equity markets, the pan-regional Stoxx Europe 600 fell 0.2 per cent and London’s FTSE 100 was flat, despite UK inflation slowing to 10.7 per cent in November, down from 11.1 per cent in October. Sterling rose 0.5 per cent against the dollar to $1.241.
