Further rate hike weighs on Wall Street
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Further rate hike weighs on Wall Street

Wall Street was expected to open slightly higher on Monday, with a surge in quarterly earnings from Exxon Mobil offsetting weaker numbers from Kodak to keep investors in a buying mood.

With less than an hour to go before the market opened, futures on the Dow Jones Industrial Average were off 10 points. Contracts on the S&P 500 and the Nasdaq 100 were almost unchanged, although a fair value comparison suggested a higher start.

US stocks fell on Tuesday as investors interpreted comments that accompanied a widely expected quarter-point interest rate rise by the Federal Reserve to mean that the US central bank was not done with its cycle of monetary tightening.

The Federal Open Market Committee raised its benchmark interest rate to 4.5 per cent and signalled in its accompanying statement that further interest rate rises might be implemented to keep inflation at bay.

European equities moved modestly higher on Friday, as earnings and sales updates from a number of companies buoyed sentiment, helping offset lower oil stocks as crude prices fell.

Hitachi, the electronics giant, slid 1.5 per cent to ¥809 after announcing a 79.4 per cent fall in quarterly profit. Konica Minolta, the high-tech manufacturer, fell 2.3 per cent to ¥1,438 as investors took profits in the wake of a post-reporting rise in the share price.

This article was compiled by Valletta Fund Management Limited, a member of the BoV Group. Valletta Fund Management, The Mall Offices, Level 6, The Mall, Floriana VLT 16. Freephone: 8007-2344. E-mail: infovfm@vfm.com.mt. Website: www.vfm.com.mt

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