Stocks becalmed before potential CPI storm

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Asian stocks hovered below seven-month highs on Thursday, as investors waited to see whether U.S. data will confirm inflation is in retreat, while the yen rose with a report Japan will next week review the side-effects of its ultra-easy policy.

The hope is that falling inflation reduces the need for interest rate hikes, and markets have priced better-than-even odds that the Federal Reserve slows its cracking pace and hikes by 25 basis points, rather than 50, at next month's meeting.

"We expect a below consensus CPI print, which if it materialises, could push this rally even further."also helped things, remarking to the New York Times that she was leaning towards a 25 basis point hike. Brent crude futures topped $83 on Thursday. U.S. Treasuries added a little to overnight gains, with benchmark 10-year yields down 3.7 bps to 3.5189% and 30-year yields down 4.4 bps to 3.6375%.Along with hopes for gentler central banks in the West, investors are also banking on a recovery in China to help global growth and are eyeing a potential policy shift in Japan.

This likely refers to the fact that 10-year yields have been stuck at the new ceiling of 0.5% for four sessions, even while the BOJ has been busy buying bonds in bulk to get them down.

 

شكرًا لك على تعليقك. سيتم نشر تعليقك بعد مراجعته.

Will these data determine an owl or a hawk 🤭

Prediction: decent CPI reading and stocks move way higher. Then a massive correction.

لقد قمنا بتلخيص هذا الخبر حتى تتمكن من قراءته بسرعة. إذا كنت مهتمًا بالأخبار، يمكنك قراءة النص الكامل هنا. اقرأ أكثر:

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