Markets Play Catch Up on Fed Rate Hike Expectations

The video discusses the implications of Fed fund futures and rate hikes, highlighting a shift from a June to September hike due to recent Fed minutes and improved US data. It explores the equity market's mixed reactions to rate hikes and potential risks to emerging markets. Additionally, it considers how the upcoming Brexit referendum might delay Fed decisions, emphasizing the uncertainty in opinion polls and potential financial volatility.

What was the main reason for shifting the expected rate hike from June to September?

• A change in Fed speakers' opinions

• Better US economic data

• The last set of minutes not hinting at a June hike

• A sudden increase in inflation

How does the equity market traditionally react to the first hikes of a cycle?

• It experiences a significant downturn

• It remains unaffected

• It immediately reacts positively

• It experiences a bit of indigestion initially

What is a potential risk for emerging markets if rate hikes are priced in?

• An increase in inflation

• A rise in commodity prices

• A re-strengthening of the dollar

• A decrease in global trade

What could potentially delay the Fed's hiking cycle according to the discussion?

• The upcoming UK referendum on Brexit

• A change in US economic data

• A sudden increase in inflation

• A shift in Fed speakers' opinions

What is the concern regarding opinion polls in the UK related to the referendum?

• They have been highly accurate in recent years

• They have not been reliable in recent years

• They show a clear outcome for the referendum

• They are not being conducted frequently enough