The latest business and finance news, as stock markets rally after last night’s Federal Reserve meetingSNB imposes negative rates to weaken the francQ&A: Negative rates explainsThe agenda: Markets cheers by the Fed 8.48am GMT The Russian rouble is volatile around this morning, as traders await Vladimir Putin’s annual press conference, from 9am.It’s currently down 2.2% against the US dollar at 61.5 roubles/$1, having hit a low as 58.#GM says it halted Russian car sales due to #ruble volatility 8.32am GMT Greek three-year bonds weakened this morning after MPs rejected the government’s presidential candidate last night, pushing up the yield on the debt.Greek 3yr yields jump by 17bps as #Greece's PM Samaras still 20 MP's short for 3rd round of Presidential election. pic.twitter.com/getazQQCKs 8.27am GMT European stock markets have risen in early trading, taking their lead from Wall Street’s rally last night.The German DAX and French CAC both surged 1.7%, while the FTSE 100 is up a more modest 0.5% or 30 points at 6366.Markets had been expecting such a move and, despite signs of some disagreement on the committee as three members dissented, the shift is a signal of confidence in the sustainability of the US recovery. Fed Chair Yellen reassured that policy continued to depend upon the data, with no move likely within the next “couple of meetings”. 8.20am GMT Why has the Swiss central bank announced negative interest rates today?Because it wants to weaken its currency, the Swiss franc, by penalising banks who hold deposits.Timing of #SNB is pretty interesting ... just a week after the SNB's last policy meeting - #rouble trouble perhaps? 7.55am GMT The Swiss franc has weakened sharply after Switzerland’s central bank surprised the markets by announcing it would impose negative deposit rates of 0.25% on commercial bank deposits.The franc fell by half a cent, to 1.2095 francs against the euro, a two month low. The SNB reaffirms its commitment to the minimum exchange rate of CHF 1.20 per euro, and will continue to enforce it with the utmost determination. It remains the key instrument to avoid an undesirable tightening of monetary conditions resulting from a Swiss franc appreciation. Over the past few days, a number of factors have prompted increased demand for safe investments. The introduction of negative interest rates makes it less attractive to hold Swiss franc investments, and thereby supports the minimum exchange rate. 7.41am GMT Good morning, and welcome to our rolling coverage of the financial markets, the world economy, the eurozone and business.And #SNB introduces negative interest rates as the great monetary policy experiment continues ... Continue reading...
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