Good morning. The bets are back on for a Fed hike in May, the emergence of the world’s biggest gold miner and a doctors’ strike in the UK. Here’s what people are talking about.
Traders raised the odds of another quarter-point rate increase by the Federal Reserve in May in the wake of strong employment data released Friday during a holiday-shortened session. Swap contracts referencing Fed meeting dates repriced to levels indicating more than 80% odds of the US central bank raising its policy rate range to 5%-5.25% on May 3. The odds of a May rate hike almost vanished amid a collapse in bank shares that began after several institutions failed. Since March 24, the sector has stabilized. Separately, New York Fed President John Williams rejected the idea that the central bank’s aggressive interest-rate increases precipitated recent financial strains highlighted by recent banking failures.