World markets head lower as Federal Reserve taper fears realised

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Yahoo Finance 19 August, 2021 - 02:46am 22 views

When are the Fed minutes released?

The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after the day of the policy decision and subsequently are published in the Board's Annual Report. federalreserve.govMinutes of the Federal Open Market Committee, July 27-28, 2021

What is taper in stock market?

Tapering is the reduction of the rate at which a central bank accumulates new assets on its balance sheet under a policy of QE. Tapering is the first step in the process of either winding down—or completely withdrawing from—a monetary stimulus program that has already been executed. InvestopediaTapering Definition - Interest Rates

U.S. Fed closing in on tapering

Arirang News 19 August, 2021 - 06:20am

 U.S. Dollar Is Strong Against Major Rivals As Tapering Moves Begin

FX Empire 19 August, 2021 - 05:19am

Against six major rivals, the dollar index rose as high as 93.502, its highest level since Nov. 5, before climbing 0.26% to 93.464.

As the dollar index rose alongside the greenback, it made peaks in 2021 on the Australian and New Zealand dollars after the greenback gained 0.3% to $1.1665 per euro, its highest since November.

Officials from the Federal Open Market Committee noted in minutes released on Wednesday that if the economy improves as expected, the bond-buying stimulus could be eased this year. However, the requirement for “substantial further progress” toward maximum employment had not yet been met.

Participants considered that it would be appropriate to reduce asset purchases this year, provided that the economy progresses as expected, the minutes stated, adding that the economy had reached its inflation target and was very close to reaching its target for job growth.

Members of the committee, however, generally agreed that the economy has not achieved the “substantial further improvement” benchmark that the Fed is looking for before considering a rate hike.

As part of their response to interest rate concerns, committee members also made clear that “there is no mechanical connection” between when tapering begins and when the federal funds rate range will increase.

During the tapering process, interest rates are unlikely to rise until the Fed is no longer growing its balance sheet and has stopped growing rates.

This year’s annual Jackson Hole, Wyoming symposium, which runs Aug. 26 through 28, will focus Fed watchers’ attention.

The Fed is expected to continue signaling continued changes to its policy, giving the greenback bulls important underlying support, according to market commentators;

Despite the market’s expectation that tapering will begin soon, it still does not expect interest rate hikes for a year or two. Futures contracts tied to the Federal Reserve’s benchmark rate are estimating that there is a 50% chance of a rate hike in November 2022 and a 69% chance the following month

World markets head lower as Federal Reserve taper fears realised

The Guardian 19 August, 2021 - 02:46am

The FTSE (^FTSE) was down 2.1% by 9.40am, Germany's DAX (^GDAXI) was down 1.7% and the CAC (^FCHI) was almost 2.8% lower. 

Over the last week, economic data from the US, Europe and China has all suggested that the rate at which major economies have been recovering in recent months is slowing.

Alongside this, research was released on Wednesday which suggested that people who become infected with the Delta variant of COVID even after being fully vaccinated may still pass the virus on.

The research showed levels of the virus could be just as high in people who get COVID despite having both jabs as in those who haven't been vaccinated. The study strengthens the case for booster jabs. US has already announced it will start administering them. 

US stock futures followed Asia lower, with the S&P 500 (ES=F) looking set for an open 0.9% lower, Dow futures (YM=F) down 1% and Nasdaq futures (NQ=F) declining 0.9%. 

The slide came following the release of Federal Reserve meeting notes, which showed officials agreed on slowing the pace of bond purchases later this year. Markets have been on edge about the prospect of tapering for weeks now. 

US stocks had finished Wednesday's session around 1% down across the board.

"The Fed's ultra-easy monetary policy, which has been in effect since 2020, has provided support to financial markets by driving down bond yields," said Naeem Aslam, chief market analyst at AvaTrade.

"Because of lower returns on these bonds, investors have shifted to riskier assets such as equities, which typically provide higher returns. The shift toward a tighter monetary policy, on the other hand, indicates that the central bank is unlikely to provide the same level of liquidity to investors in near future."

Read more: John Lewis launches ISAs as it looks to expand beyond retail

In Asia, stocks retreated overnight. The Hang Seng (^HSI) was down 2.1% at the close, the SSE Composite (000001.SS) fell 0.6% and the Nikkei (^N225) declined 1.1%. 

Turmoil in Afghanistan and regulatory crackdowns in China have all weighed on sentiment. 

Oil is down to its lowest levels since May.

Initial unemployment claims are expected to reach a new pandemic-era low last week, bringing the level of weekly new claims closer to pre-virus levels.

(Bloomberg) -- The rout in Chinese technology giants deepened on Thursday after the industry was hit with a fresh round of proposed regulations.The Hang Seng Tech Index closed 2.9% lower after earlier falling to lowest since its inception in July 2020 with Alibaba Group Holding Ltd. slumping 5.5% to a record low in Hong Kong. Video streaming giant Kuaishou Technology slid 7.1% to close at new all-time low for a fifth consecutive session.Among other shares, sector’s bellwether Tencent Holdings Lt

Warren Buffett is famous for betting against Wall Street. So, when analysts and Buffett agree on S&P 500 stocks to own, you'll want to pay attention.

Wall Street's main indexes slid on Wednesday, with the S&P 500 falling over 1%, after the release of minutes from the Federal Reserve's policy meeting last month showed officials felt the employment benchmark for decreasing support for the economy "could be reached this year." Stocks accelerated their declines late in the session, pushing the S&P 500 down about 1.8% from its record closing high after its second straight daily drop. Most S&P 500 sectors ended lower, with energy falling 2.4% and healthcare off 1.5%.

The Biden administration has frozen the Afghanistan government's holdings in US banks, preventing the Taliban from accessing billions of dollars—including $1.25 in gold bullion in a New York bank vault.

Stock futures dropped Thursday morning to extend losses from a day earlier, driven by jitters over a potential shift in monetary policy that might remove some of the stimulus underpinning equity markets.

Many Americans don’t save enough for retirement, but it’s entirely possible to save too much — at least according to the IRS. Tax laws limit how much you’re allowed to contribute to retirement accounts, and excess contributions can be penalized. Not everyone is allowed to contribute to retirement accounts.

Tesla's Autopilot woes could hurt more than its bottomline. It could erode trust in the technology that's meant to save lives.

The ruling is a fresh blow to a massive drilling project that Alaskan officials hoped would help offset oil production declines in the state. ConocoPhillips spokesperson Dennis Nuss said the company would review the decision and evaluate its options for the project. In her order, Alaska District Court Judge Sharon Gleason said she was vacating the U.S. Bureau of Land Management's approval of the development in part because the agency failed to include greenhouse gas emissions from foreign oil consumption in its environmental analysis.

(Bloomberg) -- Global markets tumbled across the board, as investors fled to the safety of U.S. Treasuries and the dollar, amid concern the Federal Reserve may start tapering stimulus this year even as the delta virus variant undermines global growth.U.S. stock-index futures fell, with contracts on the S&P 500 Index losing as much as 1.1%, and European stocks slid the most in a month. A selloff in commodities deepened, as iron ore plunged more than 10% and oil headed for the longest slump since

A new study finds that vaccines are less effective against the delta variant of coronavirus. The U.K. study,

Bitcoin's price was down roughly 2% on Thursday morning.

That amount of money is a dream for many, but it’s also less than you might think.

President Joe Biden on Wednesday announced that his administration will require that nursing home staff be vaccinated against COVID-19 as a condition for those facilities to continue receiving federal Medicare and Medicaid funding. Biden unveiled the new policy Wednesday afternoon in a White House address as the administration continues to look for ways to use mandates to encourage vaccine holdouts to get shots. “If you visit, live or work in a nursing home, you should not be at a high risk for contracting COVID from unvaccinated employees,” Biden said.

More than half of its total transaction-based revenue came from crypto trading. Crypto transaction-based revenue for the 2nd quarter was $233m, compared to just $5m for the same quarter in 2020

Micron Technology (NASDAQ: MU) stock has dipped sharply of late, losing over 12% of its value in the past week as Wall Street sentiment regarding the memory market's prospects has taken a turn for the worse. A market research report from TrendForce projecting a decline in the price of dynamic random access memory (DRAM) in the fourth quarter of 2021 and a downgrade by a Morgan Stanley analyst has weighed heavily on Micron stock. Analyst Joseph Moore has slashed his Micron price target by $30 to $75 a share, indicating limited upside from current levels.

Shares of Nio (NYSE: NIO) have been on a steady decline over the past seven trading days. Nio reported its quarterly financial results last week, and some investors weren't adequately impressed. The automaker has also been caught in a net of U.S.-listed Chinese names that have taken hits due to Chinese government regulators who have taken aim at certain technology industries.

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