Trade tensions between Washington and Beijing are riding high while U.S. inflation data will inform the Federal Reserve’s next move and rate setters in New Zealand and Canada meet.Federal Reserve Chair Jerome Powell attends a news conference following a Federal Open Market Committee meeting, Wednesday, June 14.Markets have come around fast to the Fed’s view that instead of being cut anytime soon, rates will remain high for longer. After another brutal bond sell off, focus turns to Wednesday’s U.
After months of tightening of restrictions by the U.S. and key allies on chip-related imports, Beijing hit back in recent days with curbs on chip-making metal exports, and a warning of more to come - just in time for Treasury Secretary Janet Yellen’s visit. Washington has been mulling curbing Chinese companies’ access to cloud-computing services.
The Reserve Bank of New Zealand - one of the first major central banks to start tightening policy - has raised rates by 525 basis points since October 2021 - the most among the G10. In May, it signalled it had finished raising rates, but at its meeting on Wednesday longer-term clarity may remain out of reach with inflation running at 6.7% and the economy in recession.
But now it’s time for earnings, with JPMorgan Chase, Citigroup and Wells Fargo all scheduled to report second quarter earnings on July 14. Britain’s Thames Water, with 14 billion pounds of borrowings, faces temporary state ownership if it can’t raise fresh capital. Sweden’s commercial landlord SBB is fighting for survival.