Global Markets:
● Asian Stock Markets : Nikkei up 0.48%, Shanghai Composite up 0.57% Hang Seng up 0.02% ASX up 0.26%
● Commodities : Gold at $4,367.23 (0.80%) Silver at $65.118 (1.97%), Brent Oil at 108.06 (-0.63%), WTI Oil at 104.77 (-1.00%)
● Rates : US 10-year yield at 4.985, UK 10-year yield at 5.3897, Germany 10-year yield at 3.5343
News & Data:
● (CAD) Wholesale Sales m/m
0.3% to 0.5% expected
Markets Update:
U.S. equity futures were little changed Tuesday evening as investors awaited the Federal Reserve’s pivotal interest rate decision, which could signal the start of a new rate-hiking cycle.
S&P 500 and Nasdaq-100 futures each gained 0.1%, while Dow Jones Industrial Average futures rose 56 points, or 0.1%. Asian markets were mixed early Wednesday, with Japan’s Nikkei 225 down 0.34%, while the Topix gained 0.7%. South Korea’s Kospi edged up 0.12%, while the Kosdaq fell 1.05%. Australia’s S&P/ASX 200 rose 0.24%, while Hong Kong’s Hang Seng declined 0.18% and the CSI 300 fell 0.42%.
Markets were pricing in a 92% probability of a 25-basis-point Fed rate hike Wednesday, according to CME FedWatch. The probability of another quarter-point increase stood at 45% for October and 30% for December. The current target range is 3.5% to 3.75%.
The decision comes amid White House pressure for the Fed to keep rates unchanged. Council of Economic Advisers Chairman Christopher Phelan said raising rates would be a “mistake,” pointing to improving inflation trends.
August CPI rose 3.4% year over year, down from 4.2% in May, although core inflation increased more than expected.
Oil prices jumped after reported Saudi shipment cancellations following drone attacks, while Treasury yields climbed above 5%. U.S. stocks fell Tuesday, with the S&P 500 down 0.45% and Nasdaq Composite down 0.78%, as technology shares weakened.
Upcoming Events:
● 12:30 PM GMT – USD Core Retail Sales m/m
