Fed rate hike 2018

Investors turned modestly bullish on currencies of South Korea, Malaysia and Thailand, supported by prospects of China’s reopening, a Reuters poll found, while bearish positions on other Asian currencies hovered at multi-month lows amid a weaker greenback. Market participants turned bullish on the U.S. dollar-sensitive South Korean won for the first time since July 1, 2021, the poll of 12 analysts showed on Thursday. The fortnightly poll was conducted before U.S. Federal Reserve Chair Jerome Powell signalled slower rate hikes from as soon as December late on Wednesday, following which the safe-haven dollar lost its footing. The dollar index tumbled 5.2 percent in November, its worst monthly showing since September 2010. Expectations that the dollar’s strength and U.S. yields had peaked saw investors return to emerging markets in November. “Given the negative burden of the Fed’s tightening cycle on Asian currencies, an eventual pivot toward easing will likely deliver a rally in … [Read more...] about Asian FX bulls loom on signs of slowing Fed rate hikes, China reopening: Reuters poll

SINGAPORE  – Asian equities jumped on Thursday, while the dollar slid as investors poured into risky assets after Federal Reserve Chair Jerome Powell opened the door to a slowdown in the pace of monetary tightening. In an eagerly-awaited speech, Powell said the central bank could scale back the pace of its interest rate hikes “as soon as December,” but cautioned the fight against inflation was far from over. Powell’s comments at the Brookings Institution in Washington sent the U.S. dollar and Treasury yields lower, while stocks soared with MSCI’s broadest index of Asia-Pacific shares outside Japan 1.65 percent higher. The index posted its biggest monthly gain in nearly 30 years in November as hopes for a Fed pivot toward slower rate hikes gathered steam after four consecutive 75-basis-point increases. But the index was still down about 17.8 percent on the year. European markets are set to continue the risk-on mood, with the pan-region Eurostoxx 50 futures up 1.29 percent, … [Read more...] about Asian shares rise, dollar sways as slowing rate hike looms

Car loans have become more expensive since the Federal Reserve increased the prime interst rate in October and November 2022. The average interest rate on a car loan in October 2022 was 10.6%, almost double the cost of a loan in early 2022. Interest rates are only part of the story, however. Cars are also more expensive now than they were before the pandemic, because automakers have been hit with supply chain difficulties. Ultimately, a combination of high prices and high interest rates might make new cars unaffordable for low- and middle-income families, at least in the short-term. As the Fed raises interest rates to combat inflation, auto loan rates are rising. Though the Best Auto Loan rates are still as low as 4%, in the last month the weighted average auto loan rate across all loan types has increased by 2.8 percentage points to 10.6%. New cars are also expensive at the moment, with the average sale price in September 2022 above $48,0000. Some analysts fear … [Read more...] about Interest Rate Hikes Put Car Loans Out of Reach For More Americans

- A + A LONDON (Dec 1): The bulls were enjoying the good life on Thursday after the world's most influential central banker, Jerome Powell, signalled this year's frantic pace of US interest rate hikes could be about to slow. It was a textbook "risk on" pattern, with both Europe's STOXX 600 and MSCI's main world stocks index hitting their highest since August and the previously unstoppable dollar huddled at a three-month low. Rallying bond markets sent borrowing costs lower almost everywhere too and although Wall Street looked set for a flat start later, higher oil and metals prices suggested even commodities markets now see hope for the spluttering world economy. "It absolutely makes sense," said Unigestion senior portfolio manager Olivier Marciot, saying it was a case of "it's not so bad any more, so it's good". "We have the confirmation that we are not having central banks being ever more hawkish and the confirmation that inflation is starting to slow." There … [Read more...] about Bulls on the charge after Fed signals smaller hikes

Share to Twitter Share to Linkedin This has been a year of inflation and the corresponding interest rate adjustments. When we began the year, the Federal Reserve suggested that they would raise rates approximately three times, each time for a .25% raise, for a total of a .75% increase. However, inflation didn’t behave as expected and the Fed has instead increased the rate more than expected – so much in fact that each of the 4 meetings this year has had a .75% increase. When Will Interest Rates Stop Rising? Where does that take us going forward? How much higher can we go? And how will it impact your financial life, including your retirement ? We started this year with a Fed Fund rate between .25% and .50% and we’re hovering in the range of 3.75% to 4% now. The general consensus between economists is that we likely have another 2 or 3 additional rate increases over the next few meetings this year and into the beginning of next year. The terminal rate, … [Read more...] about Where Interest Rates May Land And How It Could Impact Your Retirement

Electronic display boards at Hana Bank in central Seoul shows the Kospi closing at 2,479.84 points and the won at 1,299.70 to the dollar on Thursday. [YONHAP] Stocks and the won recovered to levels not seen in months on Thursday after the Federal Reserve Chairman signaled a slowing in the pace of interest rate increases. The Kospi broke 2,500 for the first time since August, before settling back below that level, while the won traded below 1,300 to the dollar, a level last hit in August. “The time for moderating the pace of rate increases may come as soon as the December meeting,” said Jerome Powell during a speech at the Brookings Institution in Washington. But he added, “cutting rates is not something we want to do soon. So that’s why we’re slowing down, and going to try to find our way to what that right level is.” On Thursday, foreign investors net purchased 32.8 billion won of Kospi shares and institutional investors 227 billion won. Individual investors unloaded 278.99 … [Read more...] about Stocks and won rally as Fed chair signals conditional dovishness

Representative image India's growth cycle may have already peaked, Nomura economists have said, even as the government has expressed confidence that the latest GDP numbers showed the economic recovery was gaining momentum. "We believe India's growth rate cycle has peaked and a broad-based slowdown is underway," Nomura economists Sonal Varma and Aurodeep Nandi said in a note on November 30. "While lower inflation should help support private consumption in coming months, the lagged effects of tighter financial conditions and weak global demand will weigh on both investment and exports, while the post pandemic catch-up in services is largely complete," they added. Varma and Nandi's comments come after data released by the statistics ministry showed India's GDP growth fell to 6.3 percent in July-September from 13.5 percent in April-June, largely due to the fading away of a favourable base effect. Speaking to reporters after the release of the data, Chief Economic Adviser … [Read more...] about India’s growth rate cycle has likely peaked, says Nomura

- A + A (Dec 1): Equities in Asia extended gains after their best monthly rally in 24 years, as concerns eased over China's Covid-19 measures and the US Federal Reserve's (Fed) tightening. After capping a 15% gain November, the MSCI Asia Pacific Index jumped as much as 2.5% on Thursday, inching closer toward a bull market. Gauges in China, Japan, and Taiwan led gains — although Hong Kong's measures pared — as a top Chinese official said efforts to combat the virus are entering a new phase with the Omicron variant weakening and vaccination rates rising. Investors may look past China's near-term economic slump "as long as there are positive signs of China's reopening", David Chao, global market strategist for Asia Pacific ex-Japan at Invesco, wrote in a note. Traders will watch whether China's central bank will ease further in December, he added. Regional equities also got a boost from a weaker dollar, after Fed chair Jerome Powell said that the pace of rate … [Read more...] about Asian stocks extend best rally in 24 years on China, Fed boosts

Share to Twitter Share to Linkedin From supply shortages to the war in Ukraine, surging energy prices, and the midterm elections, the top news stories in 2022 have been rife with issues impacting your wallet. While inflation has stolen the spotlight for much of the year, the job market remains surprisingly strong, and the stock market appears poised for recovery, following the best October on record. Below we look at five of the top headlines impacting consumers and investors in 2022. 1. Inflation remains stubbornly high The September Consumer Price Index (CPI) rose 0.4% month-over-month, well above the 0.2% that was expected for a year-over-year number of 8.2%, down slightly from August’s 8.3%. Meanwhile, core CPI (ex-food and energy) soared a huge 0.6% from August versus the 0.4% expected. The year-over-year increase was a fresh 40-year high of 6.7%, up from 6.3% in August. That gave the Federal Reserve (Fed) plenty of room to continue its aggressive … [Read more...] about 5 Economic Headlines Impacting Your Finances In 2022 And How You Can Prepare For The Year Ahead

- A + A BENGALURU (Dec 1): Wall Street was set to extend gains on Thursday after data showed a mild easing in inflation and solid consumer spending in October, adding to hopes of a likely downshift in the US Federal Reserve's (Fed) policy on aggressive rate hikes. A reading from the Commerce Department showed consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.8% after an unrevised 0.6% increase in September. The core personal consumption expenditure (PCE) index, excluding volatile items, eased to 0.2%, against expectations of 0.3%. "People are feeling that the worst is behind us," said Sam Stovall, chief investment strategist at CFRA Research in New York. "Today's PCE was sort of a confirmation that indeed inflation is coming down and would offer credibility to the likelihood that the Fed will raise rates by 50 basis points in December and then probably end its rate tightening programme in the latter part of the first … [Read more...] about Wall Street set to extend gains on solid consumer spending data, easing prices