Federal Reserve Ends QE: Global Market Reaction

The video discusses the Federal Reserve's hawkish stance on interest rates, leading to expectations of rate hikes sooner than anticipated. This has caused global market reactions, with declines in European indices like the STOXX Europe 600 and DAX, despite improvements in job markets. In the US, investors are adjusting their expectations, particularly in the treasury market, where the two-year note saw a significant yield increase. The dollar continues to strengthen, becoming the best-performing major currency globally.

What did the Federal Reserve emphasize in its recent statement?

• Improvements in the US job market

• Decline in global oil prices

• Increase in consumer spending

• Stability in housing markets

How did investors interpret the Fed's statement?

• As neutral

• As more hawkish than before

• As irrelevant

• As more dovish than before

What was the market reaction in Europe despite improvements in sentiment?

• Stability in the DAX index

• Significant gains across all sectors

• Increase in joblessness in Germany

• Declines in the STOXX Europe 600

What notable change occurred in the US treasury market?

• Decrease in the two-year note yield

• Increase in the ten-year note yield

• Stability in the thirty-year note yield

• Biggest one-day increase in the two-year note yield in 3.5 years

Which currency was the best performing major currency year-to-date?

• Pound

• Dollar

• Yen

• Euro