* Bank of England Financial Policy Committee director Sarah Breedon speaks in London. * European Central Bank Vice President Luis de Guindos speaks in Frankfurt World stocks have risen, recovering from the previous sessions two and a half year lows on an overnight rally in US stocks and hopes of more Chinese stimulus. * Federal Reserve Bank of Atlanta President Raphael Bostic speaks in Atlanta * G20 finance ministers and central bankers meet at annual IMF/World Bank meeting in Washington Sept Consumer Price Index, weekly jobless claims Key developments that should provide more direction to U.S. earnings season underway later with releases from BlackRock and others, Taiwanese chipmaker TSMC said cut its annual investment budget by at least 10% for 2022 and struck a more cautious note than usual on upcoming demand. Meantime, the International Energy Agency said on Thursday that OPEC+'s decision to cut in output has driven up prices and could push the global economy into recession - while Saudi Arabia claimed the decision was not political. Worryingly for Tokyo, the latest G7 finance ministers statement mentioned nothing about currency market ructions.įinance Minister Shunichi Suzuki said he told his G7 and G20 counterparts that Japan was "deeply worried about sharply rising volatility" in FX and that Japan stands ready to take "decisive" action against rapid moves. With Germany confirming its annual September inflation rate at a whopping 10.9% on Thursday, European central bankers in Washington for the International Monetary Fund meeting were just as hawkish as the FedĪnd that's left Japan's ongoing monetary easing as an outlier and the yen back on the slide to levels that prompted solo Bank of Japan intervention to support it over the past month. Business and financial news from Canada and around the world, plus the latest updates affecting your money, investments, savings, and financial health. However, even battered British gilts facing a blizzard of domestic problems managed to steady up on Thursday too - nervously awaiting the end of direct Bank of England intervention on Friday. equity volatility that's in excess of 33 points reveals the level of simmering tension. There was an eerie market calm of sorts before Thursday's release, although a VIX index of implied U.S. The readout of last month's Fed policy meeting showed officials pushing for interest rates at more restrictive levels and maintaining them there for some time to defuse "broad-based and unacceptably high" inflation. Ten-year Treasury yields have risen about 60bp to just under 4%, the S&P500 has lost more than 10% and the dollar has boomed almost 5%. 13 has been pretty clear - as futures markets have pushed the implied peak or "terminal" rate for the Fed's interest rate cycle up almost 75 basis points to about 4.7% since then. The impact of the last CPI report on Sept. And that core inflation rate is forecast to have higher again in September to 6.5% from 6.3%.
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