A 75bp rate hike is becoming the expectation of more and more analysts for the September Federal Open Market Committee (FOMC) meeting (20th and 21st). Listening for further hints and clues from this lot later today:
10:00 NY time (1400 GMT)
Federal Reserve Bank of Chicago President Charles Evans gives welcome remarks before the “Exploring Career Pathways in Economics and Related Fields Conference”
12:00 NY time (1600 GMT)
Federal Reserve Board Governor Christopher Waller speaks on the economic outlook before the Vienna Macroeconomics Workshop 2022
Also at 12:00 NY time is
Federal Reserve Bank of Kansas City President Esther George speakings on the economic outlook before virtual Peterson Institute event
But this week’s almost 3% drop, without any particular trigger, was enough for some funds to call time on the first leg of their wager that Japan would have to quit its policy of capping bond yields as its global peers push rates higher.
“We think we are getting close to an inflection point of policy,” said BlueBay Asset Management chief investment officer Mark Dowding, especially as inflation starts to pick up.
“We’re not shorting the yen anymore and we’re not long,” said Akshay Kamboj, co-chief investment officer at hedge fund Crawford Ventures.
The Biden administration is weighing an executive order to screen and possibly restrict U.S. overseas investment in cutting-edge technology development in China and other potentially hostile countries.
The White House is aiming to issue such an order within the next couple of months to monitor and potentially block outbound investment by American companies and investors, according to people familiar with the matter.
Stocks turned back lower after ECB sources comments that a 75 basis point hike is not ruled out for October. Today the central bank increased rates by 75 basis points the largest increase since the start of the common currency.
Those declines were whittled away into the close.
The final numbers are showing:
Dow industrial average up 193.24 points or 0.61% at 31774.51
S&P index up 26.31 points or 0.66% at 4006.19
NASDAQ index up 70.24 points or 0.60% at 11862.14
The small-cap Russell index was the biggest gainer with a 14.90 point rise or 0.1% at 1846.90