Global Markets:
- Asian Stock Markets : Nikkei down 1.22, Shanghai Composite down 0.74%, Hang Seng down 1.38%, ASX down 1.37%
- Commodities : Gold at $1948.45 (-0.91%), Silver at $23.49 (-1.44%), Brent Oil at $92.76 (-0.82%), WTI Oil at $88.89 (-0.85%)
- Rates : US 10-year yield at 4.429, UK 10-year yield at 4.271, Germany 10-year yield at 2.752
News & Data:
- (USD) Federal Funds Rate 5.5% vs 5.5% expected
Markets Update:
Asia-Pacific markets experienced declines across the region following the announcement by the U.S. Federal Reserve, which decided to maintain its benchmark policy rate while indicating a forthcoming interest rate hike later in the year based on the central bank’s projections.
The projections revealed that the central bank anticipates raising rates to a median of 5.6% by the conclusion of 2023, marking an increase from the current range of 5.25% to 5.5%. Moreover, the Federal Open Market Committee forecasted two rate cuts in 2024, a reduction of two compared to its earlier prediction in June, which would bring the funds rate to around 5.1%.
In Australia, the S&P/ASX 200 saw a decline of 1.37%, approaching its lowest point this month. Japan’s Nikkei 225 also experienced a decrease of 1.22% as the Bank of Japan commenced its two-day monetary policy meeting, while the Topix index fell by 0.78%.
South Korea’s Kospi recorded a 1.3% decrease, leading the losses in the Asian markets, and the Kosdaq index dropped by 1.84%. Hong Kong’s Hang Seng index exhibited a 1.3% decline, and mainland Chinese markets were also down, with the CSI 300 losing 0.55%.
In the U.S., the previous night witnessed all three major indexes undergoing declines as investors absorbed the Fed’s decisions. The Nasdaq Composite experienced the most significant losses, declining by 1.5%, driven by the performance of companies like Microsoft, Nvidia, and Google-parent Alphabet. The S&P 500 dipped by 0.94%, while the Dow Jones Industrial Average lost 0.22%.
Upcoming Events:
- 12:30 PM GMT – USD Unemployment Claims
- 2:00 PM GMT – EUR ECB President Lagarde Speaks
- 2:00 PM GMT – USD Existing Home Sales
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