Eventual Rate Hike May Boost StocksNEW YORK (Reuters) - Higher interest rates may remain far off on the horizon, but when a rate hike does come it could be good for the U.S. stock market, analysts said.
Even with growing signs of an improving economy, inflation is still low and the Fed remains on the sidelines, at least for now. Market analysts do not expect the U.S. Federal Reserve (news - web sites) to raise rates before the spring or summer.
When rates do go up, the effect should be neutral to the market, as long as it addresses the inflation rate in the economy.
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Stocks and Dollar to Get Saddam LiftBy Jan Paschal
NEW YORK (Reuters) - Saddam's capture will inspire stocks worldwide to rally when trading opens on Monday and lift the dollar, while U.S. Treasury bond prices may slip if investors flock to stocks, analysts said on Sunday.
But the capture of Iraq (news - web sites)'s former President Saddam Hussein (news - web sites) by U.S. troops, who found him hiding late Saturday "like a rat" in a hole near his home town, won't help gold.
Gold prices are likely to drop, especially if the dollar rises, as expected.
Crude oil could slide, too, from its New York close on Friday just above $33 a barrel as investors consider the prospect of a potential increase in supplies from Iraq, a major oil producer.
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