Asian Shares Idled As Expecting A Rise In Borrowing Costs And Central Banks’ Rate Hikes. Oil Prices Rose As A Result Of China's Return. The Dollar Steadied. Crypto Further Slid.Updated time: 19 Sep, 2022, 13:19 (UTC+04:00)
Investors in Asia paused to see what 13 central banks would do amid many already assumed 85% of them are in tightening mode, which would send borrowing prices and the U.S interest rate hike higher. Japan’s Nikkei was shut but its futures showed a little decline. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1%.
Although Wall Street futures were up after indexes lost ground, investors remain cautious on concerns of decades-high inflation. Dow Jones and S&P 500 both increased by 0.2%, but Nasdaq stopped at 11,862.7. A 75 bps hike is widely bet, and futures indicating an 18% possibility of a full percentage point increase. Investors now pay attention to existing home sales, building permits, and initial jobless claims.
Oil prices rebounded right after major Chinese cities returned from lockdowns which facilitated demand recovery. With the rise of 1% to $92.50 and 1.2% to $85.81 per barrel, Brent crude futures and U.S WTI futures pared three weeks of losses.
Gold prices modestly increased by 0.2% for spot and gold futures, but remained below key levels as the markets anticipated additional Fed policy tightening measures.
The dollar steadied at 109.60 and beat against the yen at 142.78 as the “odd man” BOJ’s so far has persistently kept the uber-easy policy. The euro increased to $1.1021 thanks to the ECB’s hawkish comments while sterling was stuck at $1.1436 pressured by the resilient U.S economy.
Ethereum slid more than 7% to its lowest level since July, now traded at $1,350 as a result of the Merge fall. Bitcoin and major altcoins tumbled as investors await the latest interest rate decision by the Fed. Bitcoin dropped more than 2.5%, below $19.500.