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)

Stocks:

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%.

Asian Shares Idled As Expecting A Rise In Borrowing Costs And Central Banks’ Rate Hikes

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.

Commodities:

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.

Currencies:

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.  

Cryptocurrencies:

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.

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