- Federal Reserve expected to increase interest rates
- Dollar dwindles after climbing 1% last week
- Bitcoin continues to rise
On Wednesday, the US central bank is expected to raise the cost of borrowing by 25 basis points. The Fed will likely confirm projections of three more rate hikes in 2018.
Despite the prospect of higher interest rates, the dollar is inching downwards. The world’s reserve currency has given up 0.1% against a basket of its peers, after adding 1% to its value last week.
Stock markets are mixed as a rally in financials cushions falls. Germany’s DAX 30 is 0.1% higher, while France’s CAC 40 is 0.24% lower.
London’s FTSE 100 is 0.45% stronger, supported by a rise in the banking sector and a drop in the pound.
Sterling is 0.25% weaker against a basket of its peers as investors remained glued to the Brexit process.
Asian equities are driving higher, led by gains in financial stocks. Hong Kong’s Hang Seng is 0.9 higher. HSBC is 1.68% stronger and China A50 is up 1.5%
The S&P 500 added 0.08% after gaining 0.6% on Friday, thanks to solid results from the non-farm payrolls.
US jobs showed 228,000 extra jobs had been added to the economy last month, surpassing forecast. Meanwhile, the unemployment held at 4.1%.
Bitcoin shot higher after the launch of futures by Cboe Global Markets. The digital asset has climbed to $16550.
The price of gold is 0.18% higher, just above the $1250 threshold.
Crude oil is losing some of its gains, down 0.37%, while Brent oil is flat at $63.30 per barrel. The drop comes after a rise in US drilling activity.