Economy

Asian shares slip as investors await Fed meeting for rate clues

Asian shares slip as investors await Fed meeting for rate clues”

The three major USA stock indexes edged higher on Tuesday, logging closing records, with financial stocks providing the biggest boost a day ahead of the Federal Reserve's concluding statement from its two-day policy meeting.

Financial stocks benefited from a rising U.S. Treasury yields, with the yield on benchmark 10-year notes at 2.222 percent.

Tuesday marked the start of a two-day meeting of the USA central bank.

The Fed's FOMC meeting begins Tuesday and will conclude Wednesday, Sept. 20, with an announcement on interest rates and a press conference led by chairwoman Janet Yellen.

If the focus is on the repurchase of short-term assets, that would likely push the long end of the yield curve higher, driving investors' attention also to shares of banks, which would theoretically make more money with the help of higher net interest margins, said Mr. Morganlander.

"The meeting was definitely more hawkish than what the market was anticipating", said Mary Ann Hurley, vice president in fixed income trading at D.A. Davidson in Seattle.

However, analysts were unsure about any further increases this year with inflation remaining subdued -apart from a bigger-than-expected jump in August-and other indicators still soft.

Fed policymakers made a decision to leave the central bank's short-term benchmark interest rate between 1 percent and 1.25 percent, but also said they still expect to increase the rate one more time this year and three times in 2018, if persistently low inflation rebounds. Income-seeking investors find those stocks less appealing when bond yields move higher. During the previous times, the general risk sentiment added to the North Korean risks as well and had the markets spooked but as the time goes on, the threat from North Korea has less of an effect though it refuses to go away.

In emerging markets, the Mexican peso fell 0.3 percent to 17.8125 peso per USA dollar following reports of extensive damage to buildings in Mexico City in the aftermath of the second major natural disaster that rocked that country in less than two weeks.

Bed Bath and Beyond plunged 15.9 percent after the home goods retailer reported that its latest quarterly sales at stores open at least a year, a key metric for retailers, fell short of analysts' forecasts.

The futures market implied traders saw a 58 percent chance of a rate increase at year-end, CME Group's FedWatch showed. On a day of scant local economic news the ASX, Hang Seng and Kospi were essentially flat with all of them technically in the red by less than 0.1%.

"As that balance sheet drops, that's potentially going to leave us with higher long-term rates".

Japan's Nikkei stock index surged 1.5 percent, catching up to global equities gains and responding to a weaker yen as Tokyo markets reopened after a public holiday on Monday.

About 5.8 billion shares changed hands on USA exchanges.

Meanwhile crude oil prices were steady, reportedly as worries about lower Saudi output were offset by prognoses of higher U.S. shale production.



Like this

loading...
loading...

Latest


22 September 2017
Kerber defeats Pliskova to reach Tokyo semifinal
The match was a rematch of the 2016 US Open, which Kerber won 6-3, 4-6, 6-4. "I showed today I can play like I did past year ". Kerber improved to 6-4 her win-loss record in the tiebreaks when the Czech double-faulted to hand her the lead.

22 September 2017
Trollhunters adds Mark Hamill and Lena Headey for more geeky goodness
Dan Hageman (The Lego Movie, Ninjago) and Kevin Hageman (The Lego Movie, Ninjago) serve as co-executive producers. Season one of the Netflix and DreamWorks series premiered on December 23, 2016 and consisted of 26 episodes.

22 September 2017
Stream Jhené Aiko's New Album 'Trip'
Singer Jhené Aiko teams up with Girls Trip writer Tracy Oliver for this 23-minute short film, titled Trip . So with the first two now out (movie & album), look for her poetry book, 2Fish, to be coming soon as well.

22 September 2017
Shares now up at $90.22 (EGP) EastGroup Properties Announces Third…
A month ago, they told us to expect earnings of US$0.49 per share while three months ago their EPS consensus estimate was US$0.5. HOSTER DAVID H II sold $105,756 worth of stock. 5,000 shares valued at $402,819 were sold by COLEMAN JOHN F on Monday, May 22.

22 September 2017
Deputy fires weapon after call in Jefferson County
JEFFERSON COUNTY, Ark. - A possible homicide is under investigation after a man's body is found in a pond near his home. A short time later, the suspected driver exited the store and got into the vehicle .

22 September 2017
Skyworks Solutions, Inc. (SWKS) Earns Buy Rating from Analysts at Instinet
The price earnings ratio (P/E) ratio helps investors analyze how much they should pay for a stock based on its current earnings. The stock of Skyworks Solutions Inc (NASDAQ: SWKS ) has "Neutral" rating given on Thursday, January 12 by Goldman Sachs.

22 September 2017
Facebook, Microsoft executives at Kingsmill to announce subsea transatlantic cable completion
Telxius, which will operate the cable once it goes live, began construction in August 2016 . So everybody needs to be connected with a high-volume, high-bandwidth infrastructure.

22 September 2017
Raashi Khanna watches Jr NTR's Jai Lava Kusa with fans
Jr NTR was seen wearing prosthetic make-up for the role of Jai, who calls himself Raavan and he speaks with a stutter. With positive reports all over, the film is likely to have a strong first weekend at the overseas box office.

22 September 2017
The Medicines Company (NASDAQ:MDCO) Takes Off in Trading Today - Up $2.09
Wall Street is only getting more bullish on the stock, with 8 of analysts who cover MDCO having a buy-equivalent rating. Iridian Asset Management Llc increased Medicines Co/The ( MDCO ) stake by 21.67% reported in 2017Q2 SEC filing.

22 September 2017
Stock'S Earning Overview Sabra Health Care REIT, Inc. (SBRA)
Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.