15th November 2022 Market Updates
FPG Fortune Prime Global Overnight headlines
The US 10-year note’s yield increased 4 basis points to $3.85 per.
Consumer discretionary and real estate led 10 out of the 11 S&P 500 industry groups lower on Wall Street. The health sector saw a 0.03 % increase. The VIX increased by 5.4% to 23.73.
The US inflation report from last week, which showed slower price increases, heartened the Federal Reserve vice chair, Lael Brainard, who predicted that the Fed will soon scale back the rate increases.
Preliminarily, the inflation data was encouraging, according to Brainard. “Moving to a slower pace of rate rises will probably be prudent soon.”
As Federal Reserve chairman Jerome Powell has emphasised time and time again, policy will be based on evidence, according to Brainard.
We’ll really be able to observe how that cumulative tightening is playing out by moving more slowly, according to Brainard. “I believe it’s really impossible to define exactly what that route looks like at this point, but I think it will be lot better at balancing those risks because it can take in more data,” the author says.
According to Fed governor Christopher Waller, who spoke to delegates at the UBS conference in Sydney on Monday, no conclusions should be made just yet despite how encouraging the most recent consumer pricing data was.
Before we seriously consider letting up on the brakes, we need to see a sustained pattern of this type of behaviour and inflation that is gradually beginning to decline.
- Bitcoin fell by 0.2% to US$16,317 and the Australian dollar fell by 0.01% to 67.02 cents
- The Dow fell 0.6% on Wall Street. S&P -0.9% Nasdaq fell 1.1%
- Stoxx 50 +0.5% FTSE +0.9% CAC +0.2% in Europe DAX +0.6%
- Spot gold decreased by 0.00% to $US1771.29/oz
- Brent crude decreased by 3.6% to $US92.57/barrel
- iron ore increased by 3.3% to $US95/ton
- The 10-year yield was US 3.85%. Germany 2.14% Australia 3.76%
Local: Minutes of RBA board meetings
Overseas data: China’s October retail sales and industrial output; Japan’s preliminary third quarter GDP; September’s trade balance in the Eurozone; November’s ZEW predictions; and third-quarter preliminary data GDP; October US PPI; November New York manufacturing empire