A survey of investors released Tuesday showed the risks to financial markets confounded by a US interest rate hike touched its lowest point in two years, saying the slowing economic expansion in China is their greater concern.
Barclays said it implies a higher degree of complacency over the impending rate increase, which is said to happen in December. It would be the Federal Reserve’s first rate hike since June 2006.
The UK bank added only 7% of 651 global investors said US policy normalization was the largest risk over the following year, compared with 40% in 2013.
Traders recognize the Fed liftoff could affect the markets in the long run, “but only 10 percent think it will have long-lasting effects on risky assets,” Barclays said.
Meanwhile, 36% of investors believed sluggish Chinese growth poses the greatest risk to the markets over the next 12 months.
The material has been provided by InstaForex Company – www.instaforex.com