Fed hike, Bank of Japan, interest rates, currencies

Fed hike, Bank of Japan, interest rates, currencies
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Oil Prices Rise After Fed Rate Hikes, Demand Fears Remain

Oil prices rose after the Fed’s third consecutive rate hike.

Reuters also Informed Chinese refiners they expect the nation to release up to 15 million tons of oil product export quotas for the rest of the year, citing people with knowledge of the matter.

Brent Crude Futures rose 0.45% to settle at $90.24 a barrel, while US West Texas Intermediate it also gained 0.45% to $83.3 a barrel.

— Lee Ying Shan

Fed hike likely to keep Asian risk assets under pressure, says JPMorgan

Asian risk assets, especially export-oriented companies, will remain under pressure in the short term following the Fed’s rate hike, according to Tai Hui, chief APAC market strategist at JPMorgan Asset Management.

Tai added that a strong US dollar is likely to persist, but monetary policy tightening in most Asian central banks, with the exception of China and Japan, should help limit the extent of the Asian currency’s depreciation.

the us dollar indexwhich tracks the greenback against a basket of its peers, strengthened considerably, last trading at 111.697.

— Abigail Ng

Bank of Japan Stands Firm, Supports Yield Curve Control Policy: Yen Weakens Beyond 145

The Bank of Japan kept its interest rates on hold, according to an announcement posted on its website, meeting expectations forecast by economists in a Reuters poll.

The Japanese yen weakened to 145 against the dollar shortly after the decision.

“Japan’s economy has recovered as the resumption of economic activity proceeds while public health has been protected from covid-19, despite being affected by factors such as rising commodity prices,” he said. the central bank in the statement.

jihye lee

CNBC Pro: This fund manager is beating the market. This is what you’re betting against

Outperforming fund manager names his short positions

Stock markets are down, but the fund managed by Patrick Armstrong at Plurimi Wealth continues to generate positive returns. The fund manager has a number of short positions to take advantage of market volatility.

Professional subscribers can read more here.

—Zavier Ong

Asian currencies weaken after the Fed’s third consecutive big hike

Currencies in Asia-Pacific weakened further after the US Federal Reserve made its third consecutive rate hike of 75 basis points.

china on land yuan weakened past 7.09 per dollar, hovering around levels not seen since June 2020.

The Japanese and in weakened to 144.51, while the Korean won it also topped 1,409 against the dollar, the lowest level since March 2009.

The Australian dollar fell to $0.6589.

–Ji Hye Lee

2-Year US Treasury Yield Approaches 2007 Highs

British pound slides further to hover around 37-year low

the british pound It fell further in Asian morning trade, hitting $1.1217, its lowest level since 1985.

The currency has been losing ground against the US dollar this year as economic concerns mount.

Analysts are divided whether the UK central bank will raise rates by 50 basis points or 75 basis points later today.

The British Pound was last traded at $1.1223.

— Abigail Ng

CNBC Pro: Morgan Stanley’s Mike Wilson Names the Key Attribute He Likes in Stocks

Morgan Stanley’s Mike Wilson remains defensive amid persistent market volatility this year. He names the key attribute that he is looking for in the actions.

Stocks with this attribute have been “rewarded” this year, and the trend is likely to continue until the market turns more bullish, according to Wilson.

Professional subscribers can read more here.

—Zavier Ong

Bank of Japan likely to retain control of yield curve for rest of 2022: DBS

Substantial adjustments to Bank of Japan policies are likely only after the central bank’s leadership changes in mid-2023, DBS Group Research said in a note on Tuesday.

But the BOJ may consider some “policy adjustments,” such as widening the target band by 10 basis points, in response to market pressures, the analysts wrote.

He added that “regardless of the intervention,” the dollar-yen could test 147.66 last seen in August 1998, adding that they don’t rule out USD/JPY breaking above 150 “without a hard landing in the US triggering Fed cuts.”

— Abigail Ng

Stock futures open lower

US stock futures fell on Wednesday night after a volatile session in the main averages, as traders weighed another big rate hike by the Federal Reserve.

Dow Jones Industrial Average futures were down 16 points, or 0.05%. S&P 500 and Nasdaq 100 futures fell 0.19% and 0.31%, respectively.

—Sarah Min

Stocks fall, Dow closes 522 points lower in volatile trading session

Stocks fluctuated on Wednesday but ended the session in the red after the Federal Reserve announced another 75 basis point rate hike.

The Dow Jones Industrial Average lost 522.45 points, or 1.7%, to close at 30,183.78. The S&P 500 fell 1.71% to 3,789.93 and the Nasdaq Composite fell 1.79% to 11,220.19.

—Samantha Subin

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