The US Federal Reserve (Fed) will release the minutes of its July monetary policy meeting later, which may provide clues to the central bank’s future monetary policy path. Investors waited with bated breath, and major US stock indexes opened lower on Wednesday (16th). In addition, US retail giant Target Department Store (TGT-US) rose more than 5% in early trading due to the good news of last quarter’s profit.
before the deadline,Dow Jones Industrial Averagefell more than 210 points or nearly 0.6%,Nasdaq Composite Indexfell nearly 70 points or nearly 0.5%,S&P 500 Indexfell nearly 0.6%,Philadelphia SemiconductorThe index fell nearly 0.8 percent.
The Fed will announce the minutes of its July policy meeting at 2 am Taiwan time on Thursday (17th), and only a few officials are expected to agree to keep interest rates stable for the rest of the year. Meanwhile, economists Anna Wong and Stuart Paul said yesterday that most policymakers are likely to remain cautiously optimistic that the US economy will achieve a soft landing.
The surprisingly resilient U.S. economy may allow the Fed to keep interest rates higher for longer. Bond investors who have deployed their portfolios defensively in anticipation of a U.S. recession have had to adjust their strategies accordingly. Oaktree Capital Management said in a recent report that whether there is a recession or not, the chances of a prolonged period of high interest rates are far greater than the chances of a near-term rate cut.
Neel Kashkari, president of the Minneapolis Federal Reserve Bank and a voter on the Federal Open Market Committee (FOMC) this year, said yesterday that while he was satisfied with progress in the fight against inflation, inflation Still too high and further rate hikes may be needed. As for whether the rate hike cycle is over, Kashkari believes that the Fed is not yet ready to announce the end, and it still depends on the judgment of future economic data.
In other news, the People’s Bank of China acted again on Wednesday to boost fragile market sentiment,RMBThe central parity rate was raised to a higher-than-expected level and injected the largest short-term money injection into the financial system since February this year. Those measures have so far failed to restore optimism, with market moves suggesting traders are seeking more aggressive support measures.
Andreas Lipkow, strategist at Comdirect Bank AG, said market participants are increasingly paying attention to developments in the Chinese and US housing markets.
GBPThe dollar was on track for its biggest one-day gain in three weeks on Wednesday after the latest UK inflation data reinforced bets that the Bank of England (BOE) could raise interest rates again.
Earlier data released by the Office for National Statistics showed that the consumer price index (CPI) increased by 6.8% in July, although it was lower than the previous value of 7.9%, but still slightly higher than the 6.7% expected by economists. Elsewhere, annual core CPI growth was flat at 6.9% in July, not slowing as economists expected, and services sector inflation rose to 7.4% from 7.2% in June.
As of 21:00 on Wednesday (16th) Taipei time: Focus stocks:
Tesla (TSLA-US) fell 1.31% in early trade to $229.90 per share
US electric car leader Tesla announced on its official Weibo and WeChat on Wednesday (16th) that it has lowered the prices of Model S and Model X in China. This is the second time the company has lowered the prices in China in three days. Some analysts believe that this move has further exacerbated concerns about Tesla’s renewed price war.
Intel (INTC-US) fell 1.15% in early trade to $34.37 per share
Foreign media reported that Intel will abandon its $5.4 billion acquisition of Israeli foundry chip maker Tower Semiconductor (TSEM-US) after the contract expires on Tuesday local time. Intel signed an agreement to acquire Tall Semiconductor in February 2022, but did not obtain approval from Chinese regulators as required by the contract. It is reported that Intel does not plan to extend the contract period, so it will pay High Tower Semiconductor a breakup fee of US$353 million.
Lucid Group (LCID-US) fell 0.65% to $6.37 a share in early trade
Saudi Arabia’s holdings of U.S. Treasuries fell to the lowest level in more than six years. Some analysts judged that it was mainly because the country allocated more of its oil wealth to riskier asset classes. The kingdom’s vast wealth is increasingly being invested in some riskier assets, and that trend is likely to continue. Examples include Lucid Group, which is still unprofitable, and investments in Uber (UBER-US) and other assets. The latest public data shows that the Saudi sovereign wealth fund, the Public Investment Fund (PIF), continued to vigorously increase its holdings in Lucid in the second quarter, and its holdings increased by 23% from the previous quarter.
Today’s key economic data: The initial value of the monthly rate of building permits in July in the United States was reported at 0.1%, expected – 1.7%, and the previous value was – 3.7%. 1.441 million U.S. July housing starts reported an annualized monthly rate of 3.9%, expected 2.7%, previous value – 11.7% U.S. July housing starts reported an annualized total of 1.452 million, expected 1.448 million, previous value 1.398 million U.S. 7 The monthly industrial output rate was reported at 1.0%, expected 0.3%, and the previous value was -0.8%. Wall Street analysis:
Yeap Jun Rong, market strategist at IG, said: “… US economic data so far has provided room for interest rates to remain elevated for a prolonged period. Yesterday we released US retail sales data that offset recession fears and could dampen safe-haven flows. “
FXStreet analyst Dhwani Mehta said the market was jittery ahead of the July Fed meeting minutes, which could provide new clues to the Fed’s future policy path.
2023-08-16 13:50:36
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