For Quick Alerts
For Daily Alerts

Strong US Jobs Data Signals First interest Rate Hike In US In 9 Years


It was the last of the most eagerly awaited data points from the US, ahead of the Fed meeting on Dec 15 and Dec 16. And the data came out very robust.

The Nov US Non Farm Payroll Data showed an addition of 211,000 new jobs and with it, the possibility of the first interest rates hike in the US. In Oct, the jobs data showed a blockbuster growth of 271,000 new jobs, which virtually stunned analysts.

Strong US Jobs Data Signals First interest Rate Hike In US In 9 Years

The unemployment rate has remained steady at 5 per cent.

The last interest rate hike in the US took place on June 2006 and one has to now wait and watch its impact on emerging market stocks.

Emerging market stocks have already sold off this year and India has been a sheer underperformer.

On Friday, Foreign Portfolio Investors net sold shares worth Rs 1745 crores in the Indian markets. The net sale figures have been a trend of the last few months, on fears of US Fed interest rate hikes.

India has received solid robust inflows of foreign money, thanks to easy monetary policies across the globe. That is now set to change with the US Fed now set to hike interest rates for the first time in 9 years.

Many analysts feel that there may be a pullout of money, should the Dec 15 and Dec 16 meeting signal an interest rate hike, which is almost a done deal now.

Story first published: Saturday, December 5, 2015, 11:18 [IST]
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more