© Reuters 5 Big Things to Know About Financial Markets Today: Fed Faces Dilemma as Credit Suisse Spooks Markets
Investing.com – Here are the top 5 things to know in the financial markets for Tuesday, March 15:
1.marketofRate hike expectations pick up，the fedface a dilemma
The thought that interest rate hikes will be halted due to the banking crisis is fleeting.
In the short term, the market now widely expects the Fed to raise interest rates by 25 basis points at its meeting next week, while U.S. bond yields, which fell sharply after the collapse of Silicon Valley Bank and Signature Bank (NASDAQ: ), also recovered a lot of losses, partly due to the announcement on Tuesday That failed to convince markets that the Fed’s war on inflation was over.
However, the latest U.S. PPI data for February was weaker than expected across the board, which is expected to provide some comfort to the market. Data show that the U.S. PPI unexpectedly shrank on a monthly basis in February, with a monthly rate of negative 0.1%, while the market had expected a positive 0.3%; the annual rate was also far lower than the market’s expected 5.4%, only 4.6%.
The core PPI monthly rate fell from 0.1% to 0.1%, while the market had expected 0.4%; the annual rate fell from 5.0% to 4.4%, and the market had expected 5.2%.
However, retail sales, dubbed the “horror data”, shrank 0.4% month-on-month, more than the market had expected a 0.3% contraction, indicating weak consumption that contributed to the vast majority of the U.S. economy.
And given that the consumer price index rose 0.4% month-on-month in the same period, the absolute decline in US consumption may be even more severe than the data released today.
Considering that the banking crisis has not completely dissipated, consumer inflation shows signs of stagnation, and data show that the economy is beginning to come under pressure, the Fed is in a difficult position, facing a dilemma between stabilizing the financial market and fighting inflation.
2.China’s economyThe data is mixed; Eurozone dataSupport the ECB to raise interest rates50idea
Data released earlier showed that China’s economic vitality is warming up moderately.
Growth accelerated in the first two months of the year, while housing market contraction slowed significantly, suggesting the sector has bottomed out.
However, the growth rate was lower than expected, and the young population at the same time increased.
On the other hand, inflation in the euro zone showed ominous signs, with the region’s second-largest economy rising sharply, dampening hopes of cooling inflation, while unexpectedly rising, further supporting expectations for a 50 bps rate hike on Thursday.
3.U.S. stock futures tumbleCredit Suisse freaked outmarket
U.S. stocks are expected to fall again, and panic sentiment has returned. Regional bank stocks pared their gains in pre-market trading.
Confidence in the banking sector was hit hard after Moody’s downgraded its credit outlook for the entire U.S. banking sector to negative, while the National Bank of Saudi Arabia (TADAWUL: ) said it would not take further capital injections from Credit Suisse (SIX: ) (after the bailout).
Investing.com’s U.S. stock market shows that as of 21:01 Hong Kong time (09:01 a.m. Eastern Time), blue-chip stocks fell 607.9 points, or 1.89%, down 75.0 points, or about 1.91%, mainly technology stocks It fell 179.6 points, or 1.45%.
4.South Korea will spend huge sums of money to develop high-tech industries in response to the US “Inflation Cutting Act”
The South Korean government announced today that it will invest more than US$420 billion in fields including chips, batteries, robots, electric vehicles and biotechnology over the next decade, including Samsung Electronics (KS: ) which plans to invest in chip manufacturing facilities in the next 20 years About $230 billion.
The massive investment plan is aimed at supporting key industries in South Korea, especially as the country is caught between fierce competition from the United States and China.
South Korea also wants to offer huge tax incentives to boost the competitiveness of local display and battery makers in response to similar industrial support policies in Europe and the United States.
South Korea’s array of supportive policies reflects the growing global tech war.
5.oil price hit15new month low,U.S. oil fell below70Dollar
Crude oil prices fell to 15-month lows and renewed fears of a banking crisis fueled fears of a global recession. At the same time, China’s industrial value added data was weaker than expected, which also hit friends.
As of 21:01 Hong Kong time (09:01 am Eastern Time), Investing.com Commodity Markets showed that it was down 3.15% to $69.08/barrel, and down 2.93% to $75.18/barrel.
Earlier, OPEC maintained its forecast for global oil demand growth this year (2.3 million barrels per day) unchanged, and expected the positive impact of a rebound in Chinese demand to be offset by slower demand in other parts of the world.
In addition, the International Energy Agency (IEA) said in a monthly report that global inventories have hit an 18-month high.
Later, investors also need to pay attention to the announcement of the American Petroleum Institute.
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Compiler: Liu Chuan
