Japan’s stock market, the Nikkei 225, closed down 0.5% but off its low. Earlier the Nikkei was down 2.5% following the Bank of Japan decision to maintain its short-term interest rate at 0.5% while initiating a gradual sell-off of 330 billion yen in ETFs annually. At the same time Japan’s 10Y yield surged to new […]
Japanese yields send a warning Read More »
Bonds, S&P 500The Bank of England held its base rate at 4%, citing inflation still running well above target. Additionally, it is slowing down its quantitative tightening (QT; bond sales) from £100B/year to around £70B. Inflation in the UK remains sticky (3.8% in August), which supports the BoE’s cautious stance. We should not be surprised to see
Bank of England holds base rate at 4% Read More »
Bonds, FTSE 100, Inflation, S&P 500The U.S. 10-Year Treasury Note yield rose to 4.129% today, up from a previous close of 4.085%, signalling a market rejection of the Federal Reserve’s recent rate cut, as evidenced by the yield’s sharp upward trend in the chart. This unexpected yield increase contradicts the Fed’s intent to lower borrowing costs, with historical data from
Bond yields rally despite Fed rate cut Read More »
BondsFollowing the Fed’s widely anticipated 25-basis-point rate cut yesterday, the first since December 2024, markets reacted with initial caution, as the S&P 500 closed slightly lower amid questions about the pace of future easing. The Fed’s “dot plot” projections indicated two additional cuts by year-end 2025, aligning with expectations but signalling a cautious approach due
Gold declined despite a dovish Fed Read More »
Crypto, FTSE 100, Gold, S&P 500The S&P 500 recently closed above 6,600 for the first time, but sentiment is mixed as investors await the Fed’s interest rate decision. The Fed is expected to announce a 25 basis point rate cut today. Markets will be watching how dovish the Fed is, what its forward guidance says, how many cuts are anticipated
U.S. interest rate decision Read More »
FTSE 100, S&P 500, Stocks and SharesRecent earnings have reinforced the strength of leading technology and AI-focused companies, pushing their stocks higher and keeping markets near record levels. The excitement is understandable—AI has the potential to transform industries in ways similar to the internet revolution of the late 1990s. Back then, investors rushed to buy into the “new economy,” and while
Stock markets are cautious with futures holding near record levels as investors wait for this week’s Federal Reserve decision on interest rates. Investors remain optimistic, but volatility may increase due to macroeconomic risks and anticipation of a possible rate cut. In the UK, bond markets and gilts will be watched closely amid concerns about borrowing
Cautious start to the week Read More »
BondsU.S. inflation and employment market signals suggest the Fed is very likely to cut interest rates at its meeting next week. The U.S. Consumer Price Index (CPI) data for August came in at 2.9% year-over-year, with core inflation (excluding volatile food & energy) steady at 3.1% y/y. These readings are higher than the Fed’s 2%
U.S. CPI as expected Read More »
InflationYesterday, U.S. Producer Price Index (PPI) came in lower than expected, easing fears of runaway inflation and bolstering expectations that the Fed could begin cutting interest rates. The market now anticipates possibly multiple cuts before year-end. The market is now awaiting August Consumer Price Index (CPI), scheduled for release at 1.30pm today; these figures may
S&P 500 at record highs, CPI is next Read More »
FTSE 100, S&P 500Investor sentiment is bearish overall, with caution stemming from deteriorating labour market conditions, volatility in bond yields, and fiscal uncertainties. Weak U.S. employment data has bolstered bets for a Fed rate cut. The nonfarm payrolls report showed only 22,000 jobs added in August and an unemployment rate rising to 4.3%. Bond yields declined which is
As yields pull back, gold surges to new highs Read More »
Bonds, Gold