Branch2 Intelligence
London close: FTSE ends up, gold rises as Fed rate hike fears ease - Sharecast.com
Key takeaway
FTSE 100 and gold rise as Fed rate hike fears ease, signalling lower global financing costs.
- Step 11st-order: Fed rate hike fears ease, US Treasury yields fall and the dollar weakens.
- Step 22nd-order: Lower US yields spill over to UK gilt yields via cointegrated bond markets, reducing UK SME borrowing costs.
- Step 33rd-order: A weaker dollar lifts gold prices and reduces input costs for UK importers, supporting margins for SMEs reliant on USD-denominated raw materials.
Source: Sharecast
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