Interest rates set to be increased

With the monthly jobs data coming in much better than almost anyone expected, the market saw a rather strong reaction to end the week, with the sixth consecutive net weekly gain for the sp'500 of 19pts (0.9%) @ 2099). It now seems extremely likely the Fed will raise rates at the Dec'16'th FOMC.

Fed rates/sp'500

sp'weekly1b

Summary

Suffice to add, it would seem finally... we shall soon see the beginning of an interest rate up cycle.

In my view this is bullish for the broader economy.. and the US equity market.

I did find it laughable today how a fair few of the media/analysts were asking today whether March will see the second rate hike. Those same maniacs were on economic/market suicide watch just a month ago with the last jobs report.

A month indeed... sure can swing things.

Goodnight from London
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*the weekend post will be on the US monthly indexes