UBS Sees Trading Opportunities as Strong Jobs Report Raises Fed Rate-Hike Odds
A robust August jobs report has increased the perceived likelihood of a Federal Reserve interest rate hike, prompting UBS to outline asset classes it favors and those it recommends avoiding, according to CNBC.
A stronger-than-expected August jobs report has raised the odds that the Federal Reserve will move to increase interest rates, according to a report from CNBC citing analysis from UBS.
The report said the shift in rate-hike expectations is creating a range of trading opportunities across different asset classes, based on UBS's assessment.
According to CNBC, UBS identified specific investments it believes investors should own as well as others it suggests avoiding in light of the changed interest rate outlook, though the original report did not detail the full list of recommendations.
The Federal Reserve's interest rate decisions are closely watched by investors because they influence borrowing costs, corporate earnings, and valuations across equity, bond, and currency markets.
CNBC's report attributed its analysis to UBS, a global financial services firm that regularly publishes market commentary for investors.
Sources
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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