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New York slump sends Asian equities lower New York equity markets did a massive volte-face overnight and decided that Jerome Powell had been hawkish after all and that higher rates and recession risks were a higher possibility. The Wednesday relief rally vanished into thin air as US stock markets saw every sector in every index get thrashed.

06-05-2022 03:54 GMT by Jeffrey Halley

Oil trades sideways, gold pares gains

Oil prices trade sideways After initially leaping higher after the proposed EU ban on Russian oil was released, oil markets have spent the past two sessions consolidating those gains. Overnight, oil traded in a wide and choppy range, but ultimately, Brent crude finished just 0.80% higher at USD 110.95, and WTI rose 0.95% to USD 108.55 a barrel.

06-05-2022 03:47 GMT by Jeffrey Halley

US dollar regains its losses

US dollar rebounds on risk aversion The US dollar reversed higher, unwinding all its post-FOMC losses as risk aversion swept other asset markets and US 10-year yields rose and closed above 3.0%. Support at 102.50 held beautifully on a closing basis, signalling more US dollar gains ahead.

06-05-2022 03:32 GMT by Jeffrey Halley

Bear market Friday

Equity markets take a tumble It’s a little hard to know where to start today after a massive risk aversion wave swept markets overnight, so let’s start where I believe the rot really began, the Bank of England policy decision overnight. The Bank of England raised rates by 0.25% to 1.0% in a split decision (three members wanted 0.50%), which was in line with expectations.

06-05-2022 03:08 GMT by Jeffrey Halley

NZD falls right back down

The New Zealand dollar has reversed directions on Thursday and is sharply lower. In the North American session, NZD/USD is trading at 0.6418, down a massive 1.90% on the day. US dollar rebounds after FOMC The New Zealand dollar is showing plenty of volatility.

05-05-2022 11:28 GMT by Kenneth Fisher

Pound takes a tumble after BoE hike

The British pound is fading badly on Thursday. GBP/USD has dropped a staggering 2.15% today and has fallen below the 1.24 line for the first time since July 2020.

05-05-2022 10:13 GMT by Kenneth Fisher

Market Insights Podcast (Episode 326)

Jonny Hart speaks to APAC Senior Market Analyst Jeffrey Halley about news impacting the market and the week ahead. It's the Bank of England Podcast today as I step into the breach, once again, for Craig Erlam. But before that, we discuss last night's Federal Reserve rate hike, its market impact, and the nuances of the statement. I also give my thoughts on whether the relief rally in equities it sparked, and the US Dollar sell-off will actually last. Then it's to the Bank of England who have j

05-05-2022 09:39 GMT by Jeffrey Halley

Oil surges as EU nears Russian ban, gold gets groove back

Oil soars on EU oil sanctions, Fed Crude prices surged after EU outlined plans on phasing Russian oil and following the FOMC decision that signaled Wall Street has passed peak hawkishness. The oil market will remain tight going forward and now that a peak in the dollar is in place crude prices should have extra support here. The latest EIA crude oil inventory report posted a surprise build but energy traders fixated over the strategic petroleum reserves falling to the lowest levels in over two

05-05-2022 08:05 GMT by Edward Moya

Fed Reaction: Fed confident in soft landing, not considering 75bps, stocks rally, Musk’s ape tweet

Fed hikes by a half-point A historic Fed decision is in the books and Fed Chair Powell did not disappoint. The Fed delivered the first-rate hike in 22 years and signaled more rate increases are appropriate and that the balance sheet runoff will begin in June. Growth is cooling and that could get a lot worse as the Ukraine invasion will continue to drive upward pressure on prices. Wall Street still believes the Fed will be able to deliver a soft landing and that is good news for equities. The

05-05-2022 08:00 GMT by Edward Moya

Euro slips after soft German data

The euro is under pressure and is trading at 1.0557, down 0.58% on the day. This follows a spectacular session on Wednesday, when EUR/USD jumped 0.94%, its best one-day showing since March. German Factory Orders slide German factory orders plunged 4.7% MoM in March, after a decline of 0.8% in February.

05-05-2022 07:34 GMT by Kenneth Fisher

Oil jumps on EU ban, gold rises after Fed

Oil prices leap on EU oil ban Oil prices leapt higher overnight as markets digested the impact of the proposed EU ban on Russian oil imports. Additionally, the OPEC+ JTC is indicating that there will be no change in the monthly schedule of production increases, with some members in fact noting that China's demand has slumped. Brent crude rose by 4.05% to USD 111.10 overnight, with WTI climbing by 3.90% to USD 107.55 a barrel.

05-05-2022 05:19 GMT by Jeffrey Halley

US dollar retreats after Fed hike

US dollar slumps after as-expected FOMC A holiday in Japan will limit FX volumes in the region today. Overnight, the US dollar slumped after the FOMC hiked the Fed Funds by 0.50% as expected and signalled that 0.50% hikes are coming in the next two meetings.

05-05-2022 05:10 GMT by Jeffrey Halley

Asia equities rise as China returns

Asian markets rise after Fed hike Overnight, Wall Street saw a powerful relief rally as the Federal Reserve hiked by 0.50% as expected while downplaying the risks of 0.75% hikes ahead. That saw pent-up bottom fishing demand propel the S&P 500 2.99% higher, the Nasdaq rallying 3.19%, while the Dow Jones gained 2.80%.

05-05-2022 04:55 GMT by Jeffrey Halley

PMI shocker from China

The extent of the impact of China’s Covid-zero policies on the domestic economy was highlighted this morning as the Caixin Services PMI for April recorded its second-largest fall on record. Caixin Services PMI fell from 42 to 36.2.

05-05-2022 04:43 GMT by Jeffrey Halley

Pound drifting ahead of Fed, BoE meetings

The British pound is showing little movement for a second straight day, as GBP/USD trades just below the 1.25 level. BoE expected to raise rates Nobody can accuse the BoE of lacking an aggressive policy, although perhaps it should have done so earlier. The central bank has hiked rates at three straight meetings, and the streak is expected to continue at the May meeting on Thursday.

04-05-2022 11:29 GMT by Kenneth Fisher

NZ dollar steady after solid jobs report

The New Zealand dollar is in positive territory on Wednesday, as the currency looks for its first winning session since April 20th. Strong jobs report boosts New Zealand dollar The New Zealand labour market remains robust, as confirmed by the Q1 employment report. The unemployment rate remained at a record low of 3.2%, matching expectations.

04-05-2022 10:28 GMT by Kenneth Fisher

Euro flat ahead of FOMC meeting

Fed expected to hike by half-point The Fed holds its policy meeting later today, and any move other than a half-point hike would be a huge surprise. A half-point increase is significant, as it will mark the Fed's largest rate increase in 20 years and demonstrates that the Fed is determined to lower inflation.

04-05-2022 08:30 GMT by Kenneth Fisher

Market Insights Podcast (Episode 325)

Jonny Hart speaks to APAC Senior Market Analyst Jeffrey Halley about news impacting the market and the week ahead. Steeping in for a vacationing Craig Erlam, we have a blockbuster episode today. We start with the upcoming FOMC and Bank of England rate announcements and their implications for the market.

04-05-2022 06:27 GMT by Jeffrey Halley

Oil and gold keep eye on FOMC meeting

Asian oil markets trade sideways ahead of the FOMC News that OPEC compliance had reached 164%, i.e., they can’t even pump the quotas they have agreed, failed to lift oil markets in Asia. Oil prices are almost unchanged thanks to a mainland China and Japan holiday today.

04-05-2022 03:36 GMT by Jeffrey Halley

Dollar on hold ahead of FOMC

Asian currency markets trade sideways ahead of the FOMC Holidays in Japan and mainland China are torpedoing volumes and volatility in Asia currencies markets today, with the region content to remain in a holding pattern ahead of tonight’s FOMC. Overnight, the dollar index traded in quite a wide range, moving lower intraday as the euro made an unsuccessful recovery attempt.

04-05-2022 03:30 GMT by Jeffrey Halley

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