Fed rate hike probability

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

- 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

- 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

- A + A NEW YORK/BENGALURU (Dec 1): Wall Street gave up gains made earlier on Thursday, as a contraction in manufacturing activity last month clouded data showing a mild easing in inflation and solid consumer spending, while a fall in Salesforce shares dragged the Dow lower. US manufacturing activity shrank for the first time in 2-1/2 years in November, as higher borrowing costs weighed on demand for goods and proved to be a trigger for investors to book profits, following a rally in the previous session. “Yesterday’s move was so crazy large, this is probably just some natural profit taking,” Rusty Vanneman, chief investment strategist at Orion Advisor Solutions, said. Federal Reserve Chair Jerome Powell said on Wednesday that it was time to slow down coming interest rate hikes, while also signaling a protracted economic adjustment amid high borrowing costs, pushing the S&P 500 index above its 200-day moving average for the first time since April. Markets … [Read more...] about Wall St slides after manufacturing data, Salesforce tumbles