Morning Bid: Up, up and away
Reuters · 20 Feb 2023 7K Views
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, February 17, 2023. REUTERS.
Asian shares edged up from their lowest levels in about one month but trading was slow ahead of minutes of the last Federal Reserve meeting and a reading on core inflation, with rising interest rates still seen as a risk for markets.
In Europe, money markets show that investors are already betting on a peak European Central Bank rate around 3.75% by late summer, up from levels around 3.4% earlier this month.
Investors are unwinding earlier bets after a string of hawkish comments from policymakers, forcing European shares to retreat further from one-year highs.
ECB officials have highlighted their fears about stubborn underlying inflation.
The central bank raised rates by 50 basis points this month and pre-announced another increase of the same size for March 16 but it kept an open mind about future moves, with most policymakers expecting another rate hike in May.
Geopolitical tensions heightened again as U.S. Secretary of State Antony Blinken warned top Chinese diplomat Wang Yi of consequences should China provide material support to Russia's invasion of Ukraine, saying in an interview after the two met that Washington was concerned Beijing was considering supplying weapons to Moscow.
Meanwhile, in a week when India hosts the year's first G20 finance and central bank chiefs meeting, from Feb. 22-25, tough global discussions over debt forgiveness for poor nations are going to get even trickier.
China, the world's largest bilateral creditor, is under fire for playing tough on terms.
Stand-out items on this week's economic calendar include the Federal Reserve's preferred inflation gauge, earnings reports from big U.S. retailers, global flash PMIs, and inflation readings from the euro zone and Japan.
Elsewhere, the race to buy Manchester United gathered steam with Jim Ratcliffe's company INEOS confirming it had bid for the club, while a source told Reuters that U.S. hedge fund Elliott Investment Management was also prepared to finance a takeover.
Any sale of the Premier League giant would likely exceed the biggest sports deal so far: the $5.2 billion including debt and investments paid for Chelsea.
The Glazers began looking at options for record 20-time English champions United, 17 years after they bought the Old Trafford club for 790 million pounds ($951 million) as part of a highly leveraged deal.
Underlying the weakness in property markets, average asking prices for British residential property rose by just 14 pounds in February from January, the smallest rise on record for a month which normally sees a big seasonal increase, data from property website Rightmove showed on Monday.
Key developments that could influence markets on Monday:
Economic data: Euro zone Feb consumer confidence
U.S. markets closed.
(Source: Reuters), all rights reserved by original source.
Recommend
Dollar strength decimating golden dreams
Kitco · 18 Aug 2023 12.3K Views
Event Guide: U.S. Non-Farm Payrolls Report for July 2023
Babypips · 03 Aug 2023 5.8K Views
How will the EUR/USD react to this week’s monetary policy meetings?
Babypips · 31 Jul 2023 8.5K Views
Powell’s higher for longer interest rates spook risk assets and USD
Market Pulse · 22 Jun 2023 4.1K Views
Welcome to a bipolar world of monetary policies
Market Pulse · 16 Jun 2023 10K Views
Daily Forex News and Watchlist: U.S. Dollar Index (DXY)
Babypips · 09 May 2023 11.1K Views
Dollar pauses for breath as Fed swings into focus
Reuters · 21 Mar 2023 9.3K Views
Safe haven yen, dollar regain footing as caution builds over bank contagion
Reuters · 20 Mar 2023 8.2K Views
Dollar rally loses steam as traders wait on Fed, data
Reuters · 21 Feb 2023 10.2K Views
Dollar buoyant as robust U.S. data keep Fed hawks in control
Reuters · 20 Feb 2023 9.4K Views
Dollar jumps to six-week high on higher rate expectations
Reuters · 17 Feb 2023 11.2K Views
Dollar hangs near 5-week high as inflation data looms; yen slips
Reuters · 13 Feb 2023 10.4K Views
Asia stocks set for weekly loss as Fed rate angst simmers
Reuters · 10 Feb 2023 18.5K Views
Asian shares touch six-month high, focus firmly on U.S. CPI data
Reuters · 11 Jan 2023 12.8K Views
Dollar languishes as Fed rate hike fears recede; China reopening boosts optimism
Reuters · 10 Jan 2023 14K Views