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Debt markets compete for a pool of available money, so when one major
economy raises/lowers rate it has a tendency to affect the shift funds to
the markets offering the higher returns. Since the US is a net debtor, one
might reasonably expect that rises in rates elsewhere will cause US rates to
rise to attract funds or that a rate rise elsewhere is needed to remain
competitive with recent rises in US rates. In either event one might expect
further pressure on US rates and/or the US dollar.
Earl
----- Original Message -----
From: <Jpilleafe@xxxxxxx>
To: <realtraders@xxxxxxxxxxxx>
Sent: Monday, November 01, 1999 11:55 AM
Subject: SP500 Two questions....(Quakes and Rates)
> 1. Another earth quake just hit in Taiwan, the wires report...6.0 to
> 6.5,...about 120 miles south of Taipei. Question,...does anyone know of
a
> website or work that has been done which discusses the correlation between
> quakes and long term stock market peaks?
>
> 2. The Bank of England meets Thurs 11-04 to decide on interest rates.
Any
> thought on what effect a 0.5% interest rate increase would have on the US
> financial markets,...(stocks and bonds)? The currencies sort of suggest
that
> higher rates out of Europe are likely, something not being focused on here
in
> the US at present.
>
> Thanks,....JIM Pilliod jpilleafe@xxxxxxx
>
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