International Finance: Asia stocks benchmark clings to gain before Fed: markets wrap

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A gauge of Asian stocks eased from its session highs, mirroring moves seen on Wall Street, as investors weighed a slowdown in US inflation ahead of the Federal Reserve’s policy decision.

of services prices excluding energy and rents moderated again in November. While price pressures appear to have peaked, headline CPI remains above 7%, suggesting the Fed has more work to do to rein in inflation.“The market is now anticipating a slower pace of hikes and a moderation of the peak terminal rate in the US,” said Kellie Wood, deputy head of fixed-income at Schroders in Sydney.

A dovish repricing swept across rates markets on Tuesday. With a half-percentage point move by the Fed notched in, wagers leaned toward a quarter-point increase as early as February. Further out, swaps priced the peak Fed policy rate around 4.85% by May, down from almost 5% ahead of Tuesday’s inflation print. The current Fed policy range is 3.75% to 4%.

Elsewhere in markets, oil fell slightly ahead of the Fed decision and after rallying 6% over the previous two sessions. Gold steadied near its highest level since July. Following the Fed, the European Central Bank will announce its rate decision Thursday. Markets will also contend with decisions from the Bank of England and monetary authorities in Mexico, Norway, the Philippines, Switzerland and Taiwan.

 

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Fonte: BDliveSA - 🏆 12. / 63 Consulte Mais informação »