Investors focus on Fed interest rate meeting today
Wall Street’s major indices have lost 16% to 30% of their value this year amid economic uncertainty caused by labor and supply chain shortages, rising inflation, the effects of the Russian invasion of Ukraine, and aggressive monetary policy. Many analysts have begun to lean toward a recessionary scenario and balance their portfolios by reducing stakes in companies.
On Tuesday, oil prices fell on fears that the US Federal Reserve would surprise markets with a more aggressive interest rate hike. Oil prices were also pressured by reports that Ron Wyden, chairman of the US Senate Finance Committee, plans to pass legislation imposing a 21% income tax on oil companies’ profits. But it should be noted that the energy market deficit isn’t going anywhere. OPEC+ producers are struggling to meet production quotas, and Russia is facing a ban on its oil because of the war in Ukraine. The supply shortage is exacerbated by falling exports from Libya amid a political crisis. Fundamentally, there is no reason for oil prices to fall at the moment.
Asian equity markets traded lower yesterday. Japan’s Nikkei 225 (JP225) fell by 1.32%, Hong Kong’s Hang Seng (HK50) was flat, and Australia’s S&P/ASX 200 (AU200) decreased by 3.55%.
China’s retail sales and industrial production data for May were slightly better than forecasted but still showed the impact of the quarantine due to the Coronavirus. China’s industrial production rose 0.7% in May, while retail sales fell to 6.7% year-over-year in May.
S&P 500 (F) (US500) 3,735.88 −13.75 (−0.37%)
Dow Jones (US30) 30,365.95 −150.79 (−0.49%)
DAX (DE40) 13,304.39 −122.64 (−0.91%)
FTSE 100 (UK100) 7,187.46 −18.35 (−0.25%)
USD Index 105.51 +0.43 (+0.41%)
News feed for: 2023.07.04
- China Industrial Production (m/m) at 05:00 (GMT+3);
- China Unemployment Rate (m/m) at 05:00 (GMT+3);
- China Retail Sales (m/m) at 05:00 (GMT+3);
- Eurozone French Consumer Price Index (m/m) at 09:45 (GMT+3);
- Eurozone Industrial Production (m/m) at 12:00 (GMT+3);
- US Retail Sales (m/m) at 15:30 (GMT+3);
- US Empire State Manufacturing Index (m/m) at 15:30 (GMT+3);
- US Crude Oil Reserves (w/w) at 17:30 (GMT+3);
- Eurozone ECB President Lagarde Speaks at 19:20 (GMT+3);
- US Fed Interest Rate Decision at 21:00 (GMT+3);
- US FOMC Monetary Policy Statement at 21:00 (GMT+3);
- US FOMC Economic Projection at 21:00 (GMT+3);
- US FOMC Press Conference at 21:30 (GMT+3).
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
