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Stocks churn ahead of Fed minutes as oil tumbles on price cap plan

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  • November Federal Reserve Board Minutes Due 1900 GMT
  • Thanksgiving holiday in the United States on Thursday
  • Inventories generate marginal profits globally
  • Eurozone economic data points to recession
  • China hit by rising COVID-19 infections

LONDON, June 23 (Reuters) – The world is ahead of Federal Reserve Board meeting minutes that could reveal whether the U.S. Federal Reserve is considering easing rate hikes. stock market plunged on Wednesday.

Oil prices fell as the G7 (G7) countries capped Russian oil prices at $65 to $70 a barrel.

Wall Street was set to get off to a quiet start with few ways for major corporate news to boost trading ahead of Thursday’s US Thanksgiving holiday when markets shut down.

The Federal Reserve (Fed) has raised interest rates significantly this year in an effort to curb soaring inflation. The Central Bank of New Zealand also raised interest rates by a record 75 basis points to 4.25% early on Wednesday. Banks and the Bank of England next month.

“There are predictions that the Fed is probably closer to the end of the rate hike cycle than it is to the beginning,” said Mike Hewson, chief market analyst at CMC Markets. there is,” he said.

MSCI All Country Stock Index (.MIWD00000PUS) rose 0.16%, but is still down about 18% for the year.

In Europe, Stox (.STOXX) The 600 company index is up 0.3% and is down around 10% in 2022.

David Visser, managing partner at investment manager Global Customized Wealth, said investors are wondering what the Fed will do next as signs of a slowdown in the U.S. economy become apparent. I said that I am guided by what I am.

“The overall market rally in the fourth quarter has been driven by this belief that the Fed is waking up to the fact that the pace and magnitude of rate hikes could lead to near-term conclusions… the end,” Visor said. Told.

Weakness in eurozone business activity eased slightly in November, but overall demand continues to decline as consumers cut back on spending amid a cost-of-living crisis, evidence that the currency bloc is heading into recession. was added.

“This result dispels fears of a deep recession and is consistent with a mild technological recession at the start of the year,” ING Bank said in a memo to clients.

In China, authorities have imposed restrictions to curb a surge in COVID-19 infections, fueling investor concerns about the world’s second-largest economy.

Reuters Graphics

COVID restrictions

MSCI’s broadest index of non-Japanese Asia-Pacific equities (.MIAPJ0000PUS) It gained 0.5%, helped by the gains in US stocks overnight. The index is up 12% for him so far this month.

Hong Kong’s Hang Seng Index (.HSI) China’s CSI300 index rose 0.6%. (.CSI300) increased by 0.1%.

“The biggest story for Asian investors remains the reopening of the Chinese economy,” said Suresh Tantia, senior investment strategist for Singapore at Credit Suisse.

“The Chinese market has risen to 20%, but expectations are receding, and we believe the reopening will be a slow process and will not be rushed.”

China on Wednesday reported 29,157 new COVID infections on 22nd November. The number of cases in Beijing and Shanghai has risen steadily and remains high in some major manufacturing and export hubs, prompting authorities to close some facilities.

The benchmark 10-year Treasury yield traded at 3.7799% compared to Tuesday’s US closing of 3.758%.

The two-year yield rose to 4.5434% from 4.517% at the close of the US on traders’ expectations of a rate hike by the Fed.

The dollar index, which tracks the US currency against a basket of other major trading partners, was slightly weaker ahead of the Federal Reserve’s minutes.

The euro single currency rose 0.17% to $1.032.

“The US dollar has lost some of its recent gains as central banks’ consensus on how much interest rates should rise has been shaken,” wrote Commonwealth Bank analyst Tobin Gorey.

Oil prices rose as data showed last week’s decline in US oil prices was stronger than expected, outweighing concerns about lower fuel demand from China.

US crude fell 2.5% to $78.92 a barrel and Brent crude fell 2.4% to $85.99 a barrel.

Spot gold traded at $1,736 per ounce, down 0.2% on the day.

Bitcoin climbs 2% to $16,483 as the FTX exchange crash continues to roil the cryptocurrency market.

Reporting by Scott Murdoch of Sydney and Hugh Jones of London. Edited by Kenneth Maxwell, Kim Coghill, Miral Fahmy, Tomasz Janowski

Our criteria: Thomson Reuters Trust Principles.

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