Investors play on the policy divide between US and eurozone monetary policies
London — Financial markets showed the diverging path of US and eurozone monetary policy on Wednesday. Wall Street broke new ground and the dollar perched near a 14-year high while German bond yields plumbed new record lows. World stocks edged up and the Dow closed above 19,000 for the first time with investors expecting a growth boost under the presidency of Donald Trump and an imminent rate hike from the Federal Reserve that should be reinforced by minutes issued later in the day. With European rate setters leaning the other way, reaffirming their commitment to easy policy, the euro has been pushed near one-year lows. The split has been most stark in bond markets with yields on two-year German paper hitting record lows, stretching the gap to US equivalents to an 11-year wide. In Britain, sterling was a tad weaker at $1.2408 before a budget update where hopes for fiscal stimulus have been lowered as the government has stressed its limited borrowing room. "We do like policy divergenc...
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