Asian skid trade, bond emerging, hawkish Fed comments – SABC News

Asian stock markets fell on Wednesday as investors faced the possibility of a strong bailout from the US Federal Reserve to fight inflation, while focusing on a new Western ban against Russia for an offensive. with Ukraine.

U.S. inflation reached several years high on the red stock market when Fed Governor Lael Brainard said overnight that he expected a combination of rising interest rates and a flat balance sheet to take the U.S. currency forecast. and “another neutral situation” later this year. .

In its first trade in Asia, Japan’s Nikkei lost 1.5%, South Korea’s stock fell 0.8% and Australia’s stock lost 1.2%.

Markets in Mainland China are set to open two days after the public holiday.

Chinese authorities extended locks in Shanghai on Tuesday to cover 26 million people in the financial industry, despite growing anger over the country’s various laws.

Investors’ immediate focus on Wednesday will be the release in China of a private sector services index, while the main event later in the day will be the release of minutes from the Fed’s final forecast meeting.

Entrepreneurs are expected to review the units for details and expectations of 50 sources at the next US central bank meeting in May.

“It is now considered an 80% chance the Fed will take the initiative,” said Kyle Rodda, a market analyst at IG in Melbourne.

Rodda added, investors have not paid such a price, so the big evidence for it could move the market.

He said, “The Fed is expected to raise 50 bps in June too, and if that worsens, then reversing those risks could trigger further gains in exchange,” he said. .

The European Central Bank will publish its minutes on Thursday.

Entrepreneurs were also waiting to see how the new western limit on Russia would emerge.

The United States and its allies will impose new rules on Russian banks and officials and ban new investments in Russia, the White House said.

Yields on the 10-year Treasury note benchmark continued to rise, hitting a two-year high of 2.6100% before falling slightly.

changed to -2.5973%.

The upside follows Brainard’s statement also appearing in the stock market, offering support for the dollar.

The dollar record reached 99.587, the highest since the end of May 2020.

The Greenback was also trading against the yen at 123.90 yen given the Bank of Japan’s authority in a series of events last week to hold a 10-year bond with the Japanese government under 0.25%.

Euro fell 0.1% to $ 1.0892.

The proliferation of alliances around the world has put pressure on gold, at no cost.

Gold is expected to fall 0.3% to $ 1,917.92 per ounce.

Oil prices have fallen and pressures from the dollar are rising with increasing concern that a new coronavirus case may reduce demand, despite ongoing concerns.

US crude fell 0.8% to $ 101.13 per barrel. Brent crude dropped 0.7% to $ 105.89 per barrel.

Asian skid trade, bond emerging, hawkish Fed comments – SABC News

Source link Asian skid trade, bond emerging, hawkish Fed comments – SABC News

Back to top button