Global markets are monitoring interest rate hike expectations and exchange rate movements

On the last trading day of the week, markets are monitoring expectations of a 75 basis point rate hike from the Fed and ECB, data released in Asia and exchange rate movements. The S&P 500 rose yesterday to rise above 4,000 for the first time since late August. The US 10-year bond yield rose 5 basis points to 3.32 percent, while the yield on the 2-year bond, which is more sensitive to interest rate changes, rose 7 basis points. Stock markets in Asia are generally positive. August inflation data released in China pointed to an annual increase in consumer prices of 2.5 percent and below expectations of 2.8 percent.