eat hikes can set the alarm bells ringing. But this time, the Fed had markets ringing out in joy.
t so much the hike itself, but the signal that further hikes would only be gradual. After all, no one wants a recovery that's too quick. Reuters specialist markets editor Nigel Stevenson.
>> Rate hikes can be seen as a sign of confidence in the economy. Of course, each one raises people's costs, so if you're dealing with two that' great. If you're dealing with four, well that's a sign of the economy recovering, but it raises the costs more than people were perhaps planning for.
So, it was a relief to see just these two rate hikes.>> It was bad news, though, if you'd bet on the opposite. Sovereign bonds saw their biggest daily drop since June. The dollar, sinking to a three week low. But the Euro saw its steepest rise in nine months, climbing 1.2% on the added bonus of the Dutch election result.
The challenge of Geert Wilders' far-right anti-EU party was seen off. Populism proving not as popular as many had feared.>> Some people are reading across to this, that maybe the opinion polls are likely to right in France, and the opinion polls would have to be wrong for Le Pen, the anti-euro candidate, to win in France.
>> But the sense of relief may not last long. The French election is less than six weeks away. Even if the polls don't predict a win for Marine Le Pen, markets know that now nothing is certain.