The Star Bulletin - Daily News Updates

Asian stocks waver ahead of US inflation data and central bank rate decisions

Asian stocks waver ahead of US inflation data and central bank rate decisions

Asian stocks waver ahead of US inflation data and central bank rate decisions.

After making gains early Tuesday, Asian stock markets fell as investors waited for U.S. Inflation data. Many hope that this will convince the Federal Reserve and other central bankers to stop pursuing aggressive interest rate increases.

MSCI’s broadest index Asia-Pacific shares outside Japan was at 0.10%, while Japan’s Nikkei shares were 0.335% higher and Australian shares were at 0.24% and 0.24% respectively. Seoul’s KOSPI index fell 0.10%. 

The UK economy shrinks by 0.3% in three months from October

China’s CSI300 Index and Shanghai Composite Index both fell 0.33% to 0.21%, respectively, as concerns about a rise in COVID-19 infection following the demise of key components of the zero-COVID government policy clouded the outlook.

A tourism-linked index rose more than 2% after Hong Kong relaxed COVID-19 restrictions on inbound travelers.

Investors’ primary focus was on U.S. inflation data, due out at 1330 GMT Tuesday. Core CPI inflation is expected to slow down from 6.3% to 6.1%, and headline inflation to drop to 7.3%.

Asian stocks waver ahead of US inflation data and central bank rate decisions

Janet Yellen, Treasury Secretary, made a cautious statement on Sunday. She said she expects a significant slowdown in inflation in 2023 but that the U.S. economy remains vulnerable to shocks.

The Fed, European Central Bank, and Bank of England will all likely raise rates by 50 basis point (bps) later this week, rather than the 75 bps increases they did earlier in the year.

Deutsche Bank stated in a research note that “Given its very close proximity (of U.S. CPI numbers to the FOMC), it clearly has the potential to change tone of the message… but is highly unlikely for the headline 50 bps increase,”

The dollar index, which measures how the greenback compares to six major currencies, was flat at 95.01.

After jumping Monday due to supply jitters oil prices continued to rise. Brent crude futures rose 1.17% at $78.90 a bar and U.S. West Texas Intermediate crude crude was up 1.15% at $73.99 a bar.

Spot gold was at $1,781.50 an ounce while U.S. futures rose 0.01% to $1,792.5

By Kevin Bonner

Kevin is an Editor of The Star Bulletin and a content professor. He has been contributing his input in journalism for the last four years. Kevin holds an MFA in creative writing, editing, and publishing from Emory University, Atlanta, USA. And a BA from the same. He is passionate about helping people understand content marketing through his easily digestible materials. In his spare time, he loves to swim and cycle. He is a specialist in covering trending news, world news, and other relevant political stuff. You can find him on Twitter or LinkedIn.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

No widgets found. Go to Widget page and add the widget in Offcanvas Sidebar Widget Area.