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Global shares fall on Fed rate hike, United Kingdom rate outlook

In a separate report, the department announced that USA import prices declined 0.3 percent in May after increasing 0.2 percent in April, while the price index for US exports declined 0.7 percent in May following a 0.2-percent advance in April.The Federal Reserve on Wednesday raised interest rates for the fourth time in this cycle.He suggests conservative non-US based investors buy U.S. taxable municipal bonds, which yield 0.25-0.3 percentage point more than their equivalent A-rated corporates while having a lower historical default rate.Notably, PNC Financial, with a Zacks Rank #2 (Buy), and BofA, with a Zacks Rank #3 (Hold), reflected investors’ optimism, with shares rising 6.0% and 7.5%, respectively, year to date.RETAIL REVERSAL: Consumer-focused companies like retailers also struggled.The U.S. also needs to “come to grips” with immigration reform, he said, because immigrants have historically been big contributors to U.S. labor force growth.The stock plunged $4.12, or 13.6 per cent, to $26.16.”Compared with the projections made in March, the median path for the federal funds rate is essentially unchanged”, Yellen said, during a news conference. But factory output fell after a large gain the month before. Silver fell 2.57% to $16.70 an ounce.US manufacturing has shown some signs of life this year after nearly no growth in 2015 and 2016.More worryingly, some also pointed to the relative flatness of US Treasury yield curves as a sign the markets may be expecting poor growth or even recession – which would only be exacerbated by central bank tightening.Park Seong-woo, an analyst at NH Futures, said the household debt problem will make it hard for the BOK to raise its rate this year, despite Gov. A growing number of its policy makers seem to be anxious about a spike in inflation that is eating into the living standards of the British.The U.S. Federal Reserve has raised the target range for the federal funds rate to 1 percent to 1.25 percent from 0.91 percent, citing labor market conditions and inflation.A Washington Post report that US President Donald Trump was under investigation for possible obstruction of justice added to investor worries and undermined risk appetite.Benchmark 10-year Treasury yields were last at 2.160 percent, from 2.138 percent late Wednesday. “Another area of concern is auto lending – particularly in the subprime segment – where underwriting appears to have become quite lax previous year and, consequently, delinquency rates indicate more borrowers struggling to keep up with their payments”. Brent crude, used to price global oils, edged 1 cent higher to $47.01 a barrel. The euro dropped to $1.1160 from $1.1217.KEEPING SCORE: Germany’s DAX fell 0.9 percent to 12,690 while the CAC40 of France sank 1.1 percent to 5,188.The consumer discretionary sector dropped 0.5 percent, as Amazon.com shares closed down 1.3 percent.People walk near an electronic stock board showing Japan’s Nikkei 225 index at a securities firm Thursday, June 15, 2017, in Tokyo.