March 29, 2024

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Mixed Asian stock trading;  US Treasuries are lowered after the Fed's announcement

Mixed Asian stock trading; US Treasuries are lowered after the Fed’s announcement

Asian stocks were mixed and US Treasuries pared lower on Thursday as investors analyzed Fed Chair Jerome Powell’s reference to a March rate hike and the possibility of rate hikes at every meeting monetary policy of the entity.

stock was Ups and downs in Japan and down in Australia and South Korea, as Samsung Electronics Co fails to estimate its earnings. US contracts rose after the Federal Reserve’s comments erased a rally on Wall Street on Wednesday.

The benchmark 10-year Treasury yield was at about 1.85% The gap between 5-year and 30-year bond yields was around the narrowest since early 2019. Global bonds succumbed to losses, with New Zealand’s 10-year yield hitting the highest level since 2018. The dollar flirted with a maximum of one month.

Powell bolstered the Fed’s determination to suppress the highest rate of inflation in a generation amid a strong economic recovery from the Covid-19 pandemic. The central bank also He said he expected the process of reducing the balance sheet to start after borrowing costs started to rise.

Looming Fed tightening has led to a sell-off in stocks and bonds this year as investors adjust to the waning pandemic-era stimulus and question whether it poses a risk to economic momentum. Money market traders raised their bets, predicting gains of about 113 basis points in 2022, up from about 100 basis points before the meeting ended.

Stephen Englander, global head of currency research at Standard Chartered Bank, wrote that the FOMC meeting “turned more towards a rate hike than we anticipated”: inflation risks, indicating a steady pace of policy withdrawal.

rate prospects

Swap dealers are now pricing in around 30 basis points for tightening at the central bank’s next meeting in March. The Fed typically moves rates in 25 basis point increments, so these kinds of levels suggest that at least a benchmark rate hike is safe and there’s a one in five chance of a 50 basis point hike.

For its part, Brent oil rose above $90 for the first time in seven years before paring the rally. gold and bitcoin yield (XBT) Quoted about 37,000 USD.

Among the most prominent companies, Tesla Inc’s earnings beat estimates, but stocks falter In extended operations, the company said problems in the supply chain would limit production. Intel Corp. fell on disappointing earnings expectations.

Bill Ackman said in a tweet on Wednesday that Pershing Square Capital Management is now among the 20 largest shareholders in the streaming giant Netflix.

On the geopolitical front, the United States has provided Russia with a written response to the crisis in Ukraine, with Secretary of State Anthony Blinken saying it is setting a “serious diplomatic path forward” even as he has rejected some of the country’s key demands. The Kremlin.

Key events to watch this week:

– The decision of the Reserve Bank of South Africa regarding the interest rate today, Thursday.

– US Initial Jobless Claims, Durable Goods, Gross Domestic Product, Thursday.

– Eurozone economic confidence, consumer confidence, today, Friday.

— US Consumer Income, University of Michigan Consumer Confidence, Friday.

procedures:

– S&P500 futures rose 0.2% at 9:24 am in Tokyo. The S&P 500 was down 0.2%.

Nasdaq 100 futures rose 0.5%. The Nasdaq 100 Index is up 0.2%.

Japan’s Topix rose 0.2%.

Australia’s S&P/ASX 200 Index is down 0.3%.

South Korea’s Kospi lost 0.8%.

You may be interested in:

Fed: Raising rates soon would be ‘appropriate’; The balance reduction will start after that

US stocks fall after Fed announcement, Ibovespa reports better performance in Latin America

Central Bank of Chile surprises: raises the rate by 150 points and reaches 5.5%

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