Fed edging closer to interest rates hike

In this week’s market update:

  • U.S. economic data nudges the Fed closer to interest rates hike
  • Will Chinese markets continue to decline following the significant selloff this week?
  • Europe’s economic sentiment improves in July

On Market Week in Review, Investment Strategist Paul Eitelman discusses the likeliness of interest rates hike in 2015 following U.S. data reports this week, including second quarter GDP, July U.S. Federal Reserve (the Fed) meeting notes and the employment cost index. Maintaining Russell Investments’ long-held view that a September rate hike seems most likely, he notes the importance of information in the weeks ahead that could possibly shift it one way or another, particularly inflation data.

Eitelman also comments on the significant 8.5% selloff in China’s A-shares market earlier this week1. He said while volatility continues to hover, the key thing investors should keep in mind is how quickly the Chinese economy could slow.

He concludes this week’s episode by addressing Europe’s improved economic sentiment in July, even given the uncertainty around Greece, and why investors might want to keep their eye on opportunity in this region. Alexandra Davis hosts this week’s market update.

1 Shanghai Composite Index