Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News  >  Business Leaders  >  All news

Business Leaders

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 
HomeAll newsMost read newsBusiness Leaders Biography 
The feature you requested does not exist. However, we suggest the following feature:

Asia stocks bounce as investors second-guess Fed again

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/30/2016 | 05:13am CEST
A man is reflected in a stock quotation board outside a brokerage in Tokyo

Asian shares bounced on Tuesday as doubts the Federal Reserve really would hike interest rates as soon as September restrained the dollar, while investors continued to count on more policy stimulus elsewhere in the world.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, recouping around half of Monday's loss. Stocks in South Korea added 0.7 percent and Australia 0.4 percent.

Japan's Nikkei went flat as the yen stopped falling following a sharp drop late last week.

A raft of Japanese data, from unemployment to retail sales, mostly beat analysts' forecasts but did nothing to change expectations the Bank of Japan would eventually have to ease further.

Markets are less sure when U.S. policy might change after Fed Chair Janet Yellen on Friday said the case for a rate increase was strengthening, but provided little detail on when it would next move.

Vice Chair Stanley Fischer suggested a hike was possible as soon as September. Fischer is set to appear again later on Tuesday.

Yet while the initial market reaction was to push up the probability of a September hike to 44 percent, investors quickly had second thoughts and by Tuesday the implied chance was back at 36 percent.

Dealers also reported talk the August payrolls report on Friday might miss expectations and make it that much harder for policymakers to contemplate a September tightening.

On Wall Street, the Dow ended Monday up 0.58 percent, while the S&P 500 added 0.52 percent and the Nasdaq 0.26 percent.

Financials were the best performer on the S&P 500, with Wells Fargo up 2.2 percent.

The sector typically rises with talk of higher rates, on the expectation that banks' income could rise as they charge more for loans. However, the correlation is not direct as it requires the yield curve to steepen and, so far, it is not obliging.

NATURALLY LOWER

Indeed, longer-term yields fell further than the short end on Monday, in part because much of the market suspects any Fed tightening would lead to even lower inflation over the long run.

Figures out Monday showed the Fed preferred measure of core inflation stuck at 1.6 percent for a fifth straight month.

The San Francisco Fed underlined the subdued outlook for inflation and rates in a research note.

The "natural" rate of interest - the real rate consistent with full use of economic resources and steady inflation near the Fed's target level - was near zero and would rise to only 1 percent over the next decade.

"If these projections are accurate, then a monetary policy designed to track the rise in r-star (natural rate) would imply a very gradual normalization of the federal funds rate," the note said.

The retreat in Treasury yields restrained the dollar, which held at 95.697 against a basket of currencies from a two-week top of 95.834.

The dollar likewise ebbed to 102.11 yen from a peak of 102.39, while the euro was a shade firmer at $1.1176.

In commodity markets, oil steadied after falling by around 1 percent on Monday. Oversupply remained a major concern with U.S. crude stockpiles forecast to have risen by 1.3 million barrels last week, a Reuters poll showed.

Brent crude futures were up 6 cents at $49.32 a barrel, while U.S. crude added 11 cents to $47.09.

(Editing by Kim Coghill)

By Wayne Cole

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news about  
1  2  3  4  5  6  7  8  9  10Next

Advertisement
Most Read News 
08/25DJWARREN BUFFETT : A Stock's Gain Puts Buffett Payout at Risk -- WSJ
08/24DJWARREN BUFFETT : Dow Chemical Stock Nears Buffett's $8-a-Second Dividend Threshold
08/27DJTIM COOK : Apple CEO Tim Cook Sells $36 Million From Block of Compensation Stock
08/26 CARL ICAHN : Icahn denies attempt to sell Herbalife stock, buys more shares
08/26DJRICHARD BRANSON : Billionaire Richard Branson Injured in Bike Crash
08/29DJMICHAEL DELL : Private Clouds a 'Big Priority' for Dell
08/23DJPHILIPPE DAUMAN : Viacom's Dauman Has Until September to Share Plans for Selling Paramount Stake
More news
Popular Business Leaders 
William Ackman Alan Armstrong Vincent Bolloré Richard Branson Warren Buffett Paul Bulcke Tim Cook Philippe Dauman Michael Dell Patrick Drahi John Edwards Larry Ellison Joachim Faber Carlos Ghosn Mario Greco Philip Green Herbert Hainer Guy Hands David Henry Carl Icahn R. Johnson Jérôme Kerviel Jack Ma Marissa Mayer Lakshmi Mittal Rupert Murdoch Elon Musk Xavier Niel Wolfgang Porsche Sumner Redstone Ulf Mark Schneider Charles Schwab Martin Senn Masayoshi Son George Soros Martin Sorrell Rupert Stadler Robert Stewart Osamu Suzuki Tidjane Thiam Peter Thiel Hans Vestberg François Villeroy De Galhau Sam Walton Alain Weill Thomas Wilson Martin Winterkorn Dieter Zetsche Mark Zuckerberg Isabel Dos Santos
A-Z Business Leaders