Fed hike, Bank of Japan, interest rates, currencies

Fed hike, Bank of Japan, interest rates, currencies
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Oil prices are rising after the Fed’s rate hikes, fears of demand remain

Oil prices rose after the Fed raised interest rates for the third time in a row.

Reuters too reported Chinese refiners expect the nation to unfreeze oil product export quotas worth up to 15 million tons for the remainder of the year, citing people familiar with the matter.

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

— Lee Ying Shan

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

Asian risk assets, particularly export-oriented companies, will remain under pressure in the near 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 monetary tightening in most Asian central banks – with the exception of China and Japan – should help limit the extent of Asian currency depreciation.

That US dollar indexwhich tracks the greenback against a basket of its peers rose sharply to last trade at 111.697.

– Abigail Ng

Bank of Japan remains stable, maintains yield curve control policy – Yen weakens above 145

The Bank of Japan kept interest rates on hold, in line with forecast expectations, according to an announcement published on its website Economists in a Reuters poll.

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

“Japan’s economy has recovered as the resumption of economic activity progressed while protecting public health from Covid-19, although impacted by factors such as a rise in commodity prices,” the central bank said in the statement.

Jihye Lee

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

Above-average fund manager names his short positions

Equity markets 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 off market volatility.

Pro subscribers can read more here.

– Zavier Ong

Asian currencies weakened after the Fed’s third straight rate hike

Asia-Pacific currencies continued to weaken after the US Federal Reserve made its third consecutive 75 basis point rate hike.

China is on land yuan weakened above 7.09 per dollar, hovering near levels not seen since June 2020.

The Japanese yen weakened to 144.51 while the Koreans won also rose above 1,409 against the greenback – the weakest since March 2009.

The Australian dollar fell to $0.6589.

– Jihye Lee

Two-year US Treasury yield nears 2007 highs

British pound continues to slide, hovering around 37-year low

That British pound fell further in Asian morning trade to hit $1.1217 – its lowest level since 1985.

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

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

Sterling 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 continued market volatility this year. He names the key attribute he looks for in stocks.

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

Pro subscribers can read more here.

– Zavier Ong

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

Significant adjustments to Bank of Japan policy are unlikely to occur until after the central bank’s leadership change in mid-2023, DBS Group Research said in a note Tuesday.

But the BOJ may consider “policy fine-tuning” such as widening the target range by 10 basis points in response to market pressures, analysts wrote.

It added that “regardless of the intervention” the Dollar Yen could test 147.66, last seen in August 1998, adding that they do not rule out USD/JPY rising above 150 “without a US hard landing leading to Fed cuts”.

– Abigail Ng

Stock futures open lower

US stock futures fell on Wednesday night after a volatile session of major moving averages as traders weighed another big Federal Reserve rate hike.

Dow Jones Industrial Average futures fell 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 fluctuated on Wednesday but ended the session deep in the red after the Federal Reserve announced another 75 basis point hike in interest rates.

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

— Samantha Subin

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