Home PoliticsAmerica Todays Market Outlook

On Tuesday, Asian markets exhibited mixed performance following a subdued session on Wall Street. Profit-taking activities tempered expectations for Federal Reserve interest rate cuts next year, while traders awaited crucial US inflation data scheduled for later in the week.

Recent indicators pointing to a slowdown in the economy, coupled with a consumer price increase below forecasts, have fueled optimism that the US central bank has likely completed its cycle of interest rate hikes. This has led to speculation that policymakers have successfully balanced reducing inflation without triggering a recession.

Analysts noted a slight concern that the readings could indicate potential weakness in the future. Apart from closely monitoring the personal consumption expenditures (PCE) price index, the Fed’s preferred inflation guide, investors will focus on other indicators this week, including consumer confidence and gross domestic product.

Several central bank officials, including Fed Chair Jerome Powell, are scheduled to speak. However, they are expected to maintain their stance that policy decisions will be data-driven, and they anticipate keeping rates higher for an extended period to fully control inflation.

“The market appears to have embraced the idea that slowing economic data will hasten the arrival of market-friendly rate cuts, even though the Fed has continued to telegraph otherwise,” remarked Chris Larkin at E*Trade from Morgan Stanley. “This week will provide plenty of opportunities for traders to decide whether that cooling trend is intact.”

Market data indicates that traders anticipate nearly a one-percentage-point cut through the next year, with US Treasury yields continuing to retreat from their 16-year highs last month.

In morning trade, Hong Kong, Tokyo, and Singapore experienced declines, while Shanghai remained relatively flat. On the positive side, Sydney, Seoul, Wellington, Taipei, Manila, and Jakarta recorded gains.

The expectation of future rate cuts has exerted pressure on the dollar, which extended its losses against the yen and pound from Monday’s session. Traders are also closely monitoring developments in the oil markets as OPEC and its key allies prepare for a meeting scheduled for November 30, delayed due to some African countries reportedly opposing additional production cuts proposed by Saudi Arabia. The Saudis and Russia are reportedly considering announcing further output reductions into the new year to support prices amid slowing economies and weakened demand.

Shayne Heffernan

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.