Dec 29- Japan's financial regulator has begun stress tests on regional banks to determine how much their earnings would suffer if long-term interest rates remain near record lows under the Bank of Japan's loose money policy, according to two people with direct knowledge of the process. Regional lenders have typically extended loans to smaller businesses,...» Read More
Larry Smith, chief investment officer at Third Wave Global Investors, told CNBC’s “Street Signs” that interest rates in Switzerland are significantly lower than in the United Kingdom, creating an opportunity for investors.
Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors, told CNBC’s “Power Lunch” that the market may face a short-term valuation problem. ... But Craig Hodges, portfolio manager at the Hodges Fund, remained optimistic despite the risks.
Bank of England Governor Mervyn King and three other policymakers opposed this month's decision to hold interest rates at 5.5% and called for a hike, boosting expectations that borrowing costs will rise next month.
Sweden's central bank raised its key repo interest rate by 25 basis points on Wednesday as expected, taking interest rates to 3.50%, their highest level since March 2003.
Soft business sentiment data on Wednesday reinforced expectations that the Bank of Japan will be in no rush to raise interest rates, pushing down bond yields, while comments from BOJ Deputy Governor Toshiro Muto did little to alter the market's direction.
The dollar slipped against the major currencies on Tuesday as U.S. bond yields continued to retreat from five-year highs hit last week, eroding their appeal to foreign investors.
Art Hogan, managing director at Jefferies, told CNBC’s “Power Lunch” that the slumping housing market has shaved about 1% off GDP growth and this may be good news for interest rates.
Robert Mellman, senior U.S. economist for JP Morgan, told CNBC’s “Morning Call” that strong employment and a sound economy have offset the housing slump.
Initial public offerings may be hurt by higher interest rates, but one analyst said the IPO market is still robust."We've had nearly 100 IPOs priced raising over $20 billion in the U.S. marketplace," Richard Peterson, Thomson Financial Senior Research Analyst, said on "Morning Call."
Rob Vanden Assem, portfolio manager, SunAmerican Strategic Bond Fund, told CNBC’s “Squawk on the Street” that he’s not fretting about what The Wall Street Journal called “The Coming Credit Meltdown.”
Scott Wren, equity strategist at A.G. Edwards, told CNBC’s “Squawk on the Street” that there’s a “good shot” the market will move higher.
Dan Morgan, portfolio manager at Synovus Securities, told CNBC’s “Squawk Box” that optimism about future growth is boosting the market.
The coming week is light on economic data, but will be big in determining whether Wall Street's bulls are back in charge.
The major indices return to record territory as interest rate jitters pass.
Consumers looking at the rise in interest rates may wonder what impact it will have on their wallets.
There are ways to play the stock market when interest rates are rising, analysts say, but investors should proceed with caution. "The market doesn't normally do well with rising interest rates, so a more defensive posture is in order," Bruce Bittles, chief investment strategist at Robert W. Baird, told CNBC.com."
The direction of bond yields will be the key factor for European stock markets next week, according to Bruno Verstraete, CEO of Nautilus Invest.
Larry Smith, chief investment officer at Third Wave Global Investors, told CNBC’s “Squawk on the Street” that he sees a choppy market ahead.
Al Goldman, chief market strategist for A.G. Edwards, told CNBC’s “Closing Bell” that the market’s performance has been “very impressive” despite downbeat economic news.
The Bank of Japan kept interest rates unchanged at 0.50% on Friday in a unanimous decision by its Policy Board, though expectations are growing that it will raise them in the coming months.