Interest Rates: Trade War and Equity Markets

interest rates: While that could make it harder for workers looking for a paycheck, the immediate reaction was bullish for debt-laden companies, according to Market Watch. Corporate debt rated below investment-grade, or so-called junk bonds, have made significant gains this week on surging expectations that the Federal Reserve will cut interest rates to help give steam to an economy shadowed by the prospects for a global trade war. The number of new jobs created in May reached only 75,000, well below expectations for a gain of 185,000 predicted by economists. Against this tense backdrop, the weaker-than-expected jobs report could energize bets for easier Fed policy and help bonds from leveraged issuers retrace lost ground. With the equity markets and high-yield ETFs up today, that would back the impression that the market expects the Fed to cut. This was one of the most anticipated jobs reports in quite awhile, said Matthew Kennedy, a senior portfolio manager at Angel Oak Capital Advisors. (news.financializer.com). As reported in the news.