Markets
in sentence
9395 examples of Markets in a sentence
In 2007, Lehman Brothers, AIG, and most other players in the financial
markets
were earning huge returns by trading derivatives backed by very risky mortgages.
First, it does not require government regulators to decide how much individual assets are worth, because private
markets
value toxic assets.
Asian commentators, for their part, blamed hedge funds for destabilizing regional financial
markets
and the International Monetary Fund for prescribing a course of treatment that nearly killed the patient.
But global conditions this year are anything but traditional, so it seemed appropriate to wait until US President Donald Trump settled into the White House to weigh in on some of the main surprises that might shake up the world economy and financial
markets
on his watch.
For starters, Trump’s economic policies are likely to produce much higher US interest rates and inflation than financial
markets
expect.
The US Federal Reserve Board’s published forecasts suggest only three quarter-point rate hikes this year, and futures
markets
have priced in just two such moves.
As Trump launches his policies, however, the Fed is likely to tighten its monetary policy more than it had planned before the inauguration, not less, as the
markets
still expect.
And this policy divergence suggests a second potential shock for which financial
markets
seem unprepared.
The catalyst for exchange-rate appreciation would be not only higher US interest rates, but also a dollar squeeze in emerging markets, where foreign debts have increased by $3 trillion since 2010.
Fortunately, a third major development that is not priced into financial
markets
could be more favorable for global economic conditions: the European Union – an even more important market than the US for almost every trading country apart from Mexico and Canada – could do much better than expected in 2017.
In that case, a breakup of the EU will become a realistic prospect, triggering panic in European financial
markets
and economies.
As those policies fail, global financial
markets
are reacting negatively, adding uncertainty to the world economy, and there is little relief in sight, because America is entering a period of prolonged political infighting and stalemate.
The dollar is weakening, as financial
markets
understand that the US will need to borrow huge sums from abroad for years to come.
It should also be obvious that, in the absence of currency
markets
to act as a “valve” for economic and financial pressures, economic volatility may increase.
The ECB’s Lethal InhibitionBERKELEY – Last December, with Europe’s financial system on the brink of disaster, the European Central Bank stunned the
markets
with an unprecedented intervention, offering banks across the eurozone essentially unlimited liquidity against any and all collateral for an exceptional period of three years.
Governments fear that they will lose credibility with financial
markets.
The world market is being re-divided – peacefully, because territories and
markets
are separated, so that no power occupies another power’s territory.
Now, the new financial
markets
commissioner, the United Kingdom's Lord Jonathan Hill, has been assigned the unenviable task of putting flesh on bare bones.
Most regulators and market participants agree that Europe's financial
markets
are dysfunctional.
Moreover, European companies receive an excessive 80% of their finance from banks and less than 20% from capital
markets
(the proportions are roughly reversed in the US).
In both cases, the main argument for not removing the debt overhang came from bankers, who claimed that it would create havoc in financial
markets
for two reasons.
Perhaps the risk that a Greek debt restructuring would cause a financial meltdown was always minimal, and quiescent
markets
were to be expected.
And it should not come as a surprise that the
markets
have tested the willingness of European political leaders to keep quiet where monetary affairs are concerned.
Recent intervention and support from America and Japan showed that the Euro is here to stay and that the
markets
believe in its success.
Undoubtedly, expansion will provide the “older” democracies with new growth
markets.
There was a collective sigh of relief, financial
markets
stabilized, and industrial-production rebounded.
Stock
markets
have been falling most days, money
markets
and credit
markets
have shut down as their interest-rate spreads skyrocket, and it is still too early to tell whether the raft of measures adopted by the United States and Europe will stem the bleeding on a sustained basis.
Emerging
markets
were initially tied to this distress only when foreign investors began pulling out their money.
Then panic spread to credit markets, money markets, and currency markets, highlighting the vulnerabilities of many developing countries’ financial systems and corporate sectors, which had experienced credit booms and had borrowed short and in foreign currencies.
Many emerging
markets
are now at risk of a severe financial crisis.
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