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Stock market and short term interest rates interaction

Category: Intermarket analysis | 5 Aug 2011 | No comments »

Short term rates demonstrate economic processes: interest rate increase on the one hand may reflect money (financial resources) demand increase, on the other hand slows down economic development and as a result stock market growth, later create the downside trend in stock market. Interest rate decrease may reflect money (financial resources) demand decrease and fasten economic development and as a result stock market growth. (more…)

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