Daily Report : What negative interest rates might mean for stocks and the dollar; Secondary surge suggests companies are "feeding the ducks"


  • Jason Goepfert

    Jason Goepfert

    Published: 2020-05-15 at 17:32:02 CDT

The prospects of negative interest rates in the United States is growing, with some futures contracts already pricing in the possibility. While it is sometimes framed as a sign that economic growth has collapsed and markets are heading to oblivion, the experience in other countries showed rallies in stock markets and drops in their currencies when rates first turned negative.; As stock prices recover amid the most uncertain corporate environment in generations, companies are scrambling to offer secondary or add-on shares. This is often taken as a sign of frothy sentiment and additional supply, both negatives for prices. It hasn't been that clear of a negative, though.


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