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 hike, demand fears persist

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

at Reuters reported Chinese refineries Citing people with knowledge of the matter, they expect the country to release an export quota of up to 15 million tons of petroleum products for the remainder of the year.

Brent oil futures It rose 0.45% to $90.24 per barrel. USA West Texas Central also rose 0.45% to $83.3 per barrel.

— Lee Ying Shan

JPMorgan says Fed hike will keep Asian risk assets under pressure

Asian risk assets, particularly export-oriented companies, will be 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 continue, but that tightening monetary policy in most Asian central banks, excluding China and Japan, will help limit the extent of Asian currency depreciation.

this US dollar indexWatching the dollar against a basket of peers, it strengthened sharply and lastly stayed at 111,697.

– Abigail Ng

Bank of Japan holds steady, supports yield curve control policy – yen surpasses 145

The Bank of Japan has kept interest rates steady, according to an announcement posted on its website – Economists in a Reuters poll.

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

“Although Japan’s economy has been impacted by factors such as the rise in commodity prices, the resumption of economic activity has rebounded as public health is protected from Covid-19,” the Central Bank said in a statement.

Jihye Lee

CNBC Pro: This fund manager is beating the market. Here’s what he’s betting against

Outstanding fund manager identified short positions

Stocks are down, but the fund managed by Patrick Armstrong at Plurimi Wealth continues to deliver positive returns. The fund manager has a number of short positions to play on market volatility.

For subscribers read more here.

— Zavier Ong

Asian currencies weaken after Fed’s third largest hike in a row

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

China on land yuan It crossed 7.09 per dollar, hovering near levels not seen since June 2020.

Japanese yen While weakening to 144.51, Korea to win it also surpassed 1,409 against the dollar – its weakest since March 2009.

The Australian dollar fell to $0.6589.

– Jihye Lee

US 2-year Treasury yield heading towards 2007 highs

British pound slips further to hover around 37-year low

this British pound It fell further in Asian morning trading, reaching $1.1217, its lowest level since 1985.

The currency is depreciating against the US dollar this year as economic concerns mount.

Analysts were divided Will the UK central bank raise rates by 50 basis points or 75 basis points today?

Sterling was last traded at $1.1223.

– Abigail Ng

CNBC Pro: Morgan Stanley’s Mike Wilson names the key feature he loves in stocks

Morgan Stanley’s Mike Wilson is on the defensive amid ongoing market volatility this year. He names the key feature he looks for in stocks.

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

For subscribers read more here.

— Zavier Ong

Bank of Japan likely to maintain yield curve control for remainder of 2022: DBS

DBS Group Research said in a note Tuesday that significant adjustments to the Bank of Japan’s policies could only occur after the central bank’s leadership changes in mid-2023.

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

“Regardless of interference”, dollar yen It could test 147.66, last seen in August 1998, and they added that they would not rule out USD/JPY rising above 150 “without a hard landing leading to Fed cuts in the US”.

– Abigail Ng

Stock futures open lower

U.S. stock futures fell Wednesday night after a volatile session on the main averages as traders weighed another big rate hike from 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 slide, Dow closes 522 points lower in volatile trading session

Stocks rallied 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 closed at 30,183.78, down 522.45 points, or 1.7%. 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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