Federal Reserve (Fed) Chairman Jerome Powell has been hinting that interest rates will be cut in July due to economic risks and inflation pressures. Wall Street Journal commented on this at the end of last week by saying that the Fed is likely to cut rates by 25 bps this month and ‘may make further cuts in the future given global growth and trade uncertainties.
As worries for an aggressive rate cut have now become more settled, the Asian market reacted with a fall in Asia stock this morning, while crude oil prices rose due to increased tensions in the Middle East after Iran’s seizure of a British tanker.
According to Reuters, MSCI’s broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS was down 0.4 percent, Japan's Nikkei.N225 closed at 0.2 percent, the Shanghai Composite Index.SSEC was down by one percent and Hong Kong’s Hang Seng.HSI dropped by 0.9 percent.
Speaking about the week ahead, senior forex strategist at IG Securities said that stocks could go lower depend on any tweets that President Donald Trump creates about trade issues with China. “Stocks could decline if he continues to make challenging trade comments directed at China this week,” Ishikawa said.
While Asia stock fell, crude oil prices increased with Brent crude futures LCOc1 up by 1.55 percent at $63.44 per barrel, following an increase of about 0.9 percent on Friday.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.94% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.