Fed hike, Bank of Japan, interest rates, currencies

Fed hike, Bank of Japan, interest rates, currencies
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Oil prices rise after Fed rate hike, demand fears linger

Oil prices rose after the Fed’s third consecutive interest rate hike.

Also Reuters Chinese processors reported they expect the country to release an export quota of 15 million tonnes of petroleum products for the rest of the year, according to people familiar with the matter.

Brent oil futures It increased by 0.45% and was equal to 90.24 dollars/barrel US West Texas Mid increased by 0.45% to 83.3 dollars per barrel.

– Lee Yingshan

JPMorgan says Fed hike will keep Asian risk assets under pressure

According to Tai Hui, APAC chief market strategist at JPMorgan Asset Management, Asian risk assets, especially export-oriented companies, will come under pressure in the short term following the Fed’s rate hike.

Tai added that the strong U.S. dollar is likely to continue, but monetary policy tightening by most Asian central banks, with the exception of China and Japan, should help limit the extent of Asian currency depreciation.

The US dollar indextracking the dollar against a basket of peers, strengthened sharply and finally remained at 111,697.

– Abigail Ng

The Bank of Japan remains stable, holding on to the policy of yield curve control – yen weakens past 145

The Bank of Japan kept interest rates on hold – meeting projected expectations – according to an announcement on its website. Economists in a Reuters poll.

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

“Despite the impact of factors such as rising commodity prices, Japan’s economy picked up as the recovery of economic activity progressed while public health was protected from Covid-19,” the central bank said in a statement.

Jihye Lee

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

A top-performing fund manager names his brief duties

Stock 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 the market volatility.

Pro subscribers can read more here.

– Xavier Ong

Asian currencies weaken after the Fed’s third big hike

Currencies in the Asia-Pacific region weakened further after the US Federal Reserve implemented a third consecutive interest rate hike of 75 basis points.

China is on land yuan 7.09 per dollar, approaching levels not seen since June 2020.

the Japanese Yen It weakened to 144.51, while Korea won It also crossed 1,409 against the dollar – the weakest since March 2009.

The Australian dollar fell to $0.6589.

– Jihye Lee

The yield on 2-year US Treasuries reached the highest level in 2007

The British pound slipped further to a 37-year low

The British pound In Asian morning trade, it fell further to $1.1217 – the lowest level since 1985.

The currency is losing ground against the US dollar this year due to growing economic concerns.

Analysts are divided Whether the UK central bank will raise interest rates by 50 basis points or 75 basis points after today.

Sterling last traded at $1.1223.

– Abigail Ng

CNBC Pro: Morgan Stanley’s Mike Wilson names a key feature he likes about stocks

Morgan Stanley’s Mike Wilson remains defensive amid continued market volatility this year. He names a key attribute he looks for in stocks.

According to Wilson, stocks with this attribute have been “rewarded” this year, and the trend is likely to continue until the market moves higher.

Pro subscribers can read more here.

– Xavier Ong

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

DBS Group Research said in a note on Tuesday that significant adjustments to the Bank of Japan’s policies will only happen after the central bank’s leadership changes in mid-2023.

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

He added that “regardless of interference” dollar-yen It could test 147.66, last seen in August 1998, and they added that they do not rule out USD/JPY rising above 150 “without a hard US decline that leads to Fed tapering.”

– Abigail Ng

Stock futures open lower

U.S. stock futures fell after a volatile session in key averages overnight Wednesday, as traders shrugged off another big rate hike from the Federal Reserve.

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.

– Sara Min

Stocks slide, Dow closes down 522 points in volatile trading session

Stocks faltered on Wednesday but ended the session in the red after the Federal Reserve announced another 75 basis point interest rate hike.

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

– Samantha Subin

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