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“One Royal” for Arabic: Markets reacted positively to signs of slowing pace of interest rate hikes in America

Sam Haidar, market strategy adviser at One Royal, said in an interview with “Al-Arabiya” that the indications of a reduction in the pace of interest rates by the Federal Reserve had a positive effect on the trend of the price of gold and the stock markets.

Haider added that US Treasury yields declined, while the dollar experienced some weakness.

He explained that what is bad for stock markets is rising rates accompanied by a slowdown in the economy.

Wall Street closed with strong gains on Wednesday after US central bank meeting minutes showed a “large majority” of policy makers agreed it will “probably be appropriate soon” to slow the pace of rate hikes of interest.

The dollar fell on Thursday as investors flocked to risky assets amid expectations of a slower pace of the Federal Reserve’s rate hike.

Japan’s Nikkei index closed Thursday’s trading at its highest level in more than two months, following Wall Street, which posted overnight gains in hopes that the Federal Reserve slows the pace of interest rate hikes.

The Nikkei index closed in up 0.95% to 28,383.09 points, the highest level since September 13. The broader Topix index also jumped 1.21% to 2018.80 points.

The minutes of the Federal Reserve meeting held in early November showed that a “large majority” of monetary policy makers agreed that “it will probably be appropriate soon” to slow the pace of interest rate hikes, as the debate on the implications of the bank’s policy tightening.

The Fed minutes indicate they are leaning towards a 50 basis point rate hike in December.

“The vast majority of attendees felt that a slowdown in the pace of growth would likely be timely soon,” according to the minutes of their Nov. 1-2 meeting released Wednesday in Washington.

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