Chandra Dwi, CNBC Indonesia
Market
Wednesday, 09/20/2023 21:05 IWST
Photo: REUTERS/Lucas Jackson
Jakarta, CNBC Indonesia – The United States (US) stock exchange, Wall Street opened higher in trading Wednesday (20/9/2023), ahead of the announcement of the United States (US) central bank’s decision on the benchmark interest rate.
The Dow Jones Industrial Average (DJIA) opened up 0.23% to 34,598.75, the S&P 500 added 0.25% to 4,455.04, and the Nasdaq Composite appreciated 0.23% to 13,709.37.
The US central bank (Federal Reserve/The Fed) is expected to announce its benchmark interest rate policy on Wednesday at 14:00 US time or early Thursday Indonesian time, precisely at 01:00 WIB.
As previously predicted by the market, this time the Fed is predicted to maintain its benchmark interest rate at 5.25%-5.5%. This is proven by the CME FedWatch tool, where 99% of the market predicts the Fed will hold its benchmark interest rate.
However, investors will pay close attention to the summary of economic projections and the Fed Chair Jerome Powell’s press conference for clues on whether the Fed will raise interest rates again this year.
The Fed raised its benchmark interest rate last July to the highest level in more than 22 years. The Fed has also raised interest rates 11 times with a total increase of 525 basis points (bp) since March 2022.
“The number one thing we look at and what investors are looking for is the long-term expectations, namely where terminal ratehis,” said Dylan Kremer, co-chief investment officer at wealth management company Certuity, quoted from CNBC International.
Meanwhile, ahead of the announcement of the Fed’s benchmark interest rate decision, yields (yield) US government bonds (US Treasury) were observed to be sloping, after touching their highest level since 2007.
Yield The benchmark 10-year tenor treasury fell 0.4 bp to 4.327%, from the previous level of 4.339%.
On the other hand, the greening of Wall Street occurred amidst the decline in world benchmark crude oil prices today, after several days of strong strength.
As of 20:45 WIB, the price of Brent crude oil had weakened 0.46% to US$ 93.91 per barrel, while the price of West Texas Intermediate (WTI) oil had corrected 0.21% to US$ 91.01 per barrel.
“The oil rally stalled a bit because of every trader awaiting the Fed’s important decision which may determine what the US economy will experience soft landing or hard landing,” said Edward Moya, senior market analyst at data and analytics company OANDA, as quoted by CNBC International.
Oil prices eased even though US crude stocks fell last week, namely by around 5.25 million barrels, according to market sources citing American Petroleum Institute figures last Tuesday.
CNBC INDONESIA RESEARCH
research@cnbcidonesia.com
Watch the video below:
Waiting for the US Central Bank’s “Hilal”.
(chd/chd)
2023-09-20 14:05:26
#Ahead #Feds #announcement #Wall #Street #opens #cheerfully
