RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Capital Markets, Financial

BGC Partners eyes new platform to trade US Treasuries

BGC Partners plans to launch a new platform to trade US Treasuries early next year, in a bid to return to a market in the middle of evolution, according to people familiar with the plans.  The company, spun out of Howard Lutnick’s Cantor Fitzgerald in 2004, sold eSpeed, the second-largest interdealer platform for trading Treasuries, […]

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Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

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Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

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Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

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Categorized | Property

US mortgage rates jump after Trump win

Posted on November 17, 2016

Mortgage rates have jumped higher following the US presidential election, with expectations that it could lead to a slowdown in housing activity.

Long dated, 30-year fixed-rate mortgages averaged 3.94 per cent over the past week ending November 17, up from 3.57 per cent for the previous week, according to data from Freddie Mac, one of the agencies that purchases mortgages eligible for government backing.

The increase comes as government bond yields have risen sharply since Trump secured a surprise election win. The 30-year rate is still below the 3.97 per cent reached this time last year as the Fed was preparing to raise rates for the first time since the financial crisis.

“If rates stick at these levels, expect a final burst of home sales and refinances as ‘fence sitters’ try to beat further increases, then a marked slowdown in housing activity,” said Sean Becketti, chief economist, Freddie Mac.

15-year mortgage rates averaged 3.14 per cent, up from 2.88 per cent and 5-year adjustable rate mortgages averaged 3.07 per cent, up from 2.88 per cent.