GLOBAL MARKETS-Asia Shares Slip as Markets Reprice Fed Expectations, Oil Gains
Fed funds futures priced a 54% chance of at least two quarter-point hikes by year-end, according to CME Group’s FedWatch tool.
- MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 per cent on Tuesday as traders grappled with expectations of an accelerated rate hike schedule under new Federal Reserve Chair Kevin Warsh.
- According to the CME Group's FedWatch tool, Fed funds futures are pricing an implied 54 per cent probability of at least two 25-basis-point hikes before the year ends, up from 15.2 per cent last week.
- Oil prices regained strength early Tuesday after the U.S. waived sanctions on Iran, as U.S. Vice President JD Vance said progress occurred in talks and the Strait of Hormuz remained open.
- Japanese Finance Minister Satsuki Katayama held an online meeting with U.S. Treasury Secretary Scott Bessent late Monday to address concerns over sharp currency swings as the yen approached its weakest levels in 40 years.
- The British pound remained flat after Prime Minister Keir Starmer announced his resignation on Monday, while researcher Chris Weston noted investors are rotating into defensive areas as markets lose momentum.
11 Articles
11 Articles
After a series of price gains, many investors use the latest record levels for sales. In addition, nervousness is growing before the US Federal Reserve's possible further interest rate steps.
Asian shares slip as markets reprice Fed expectations, oil gains
The Nikkei 225 trimmed losses after data showed Japan’s manufacturing sector sustained strong June growth, with orders surging. (EPA Images pic) SINGAPORE: Asian stocks mostly eased and oil prices regained strength early on Tuesday after the US waived sanctions on Iran, while traders grappled with rising expectations the Federal Reserve may take more aggressive action to tackle inflation later this year. MSCI’s broadest index of Asia-Pacific sha…
Nikkei drops as Asian markets buckle under Fed hike shock and oil rebound
Asian markets lost some of Monday’s relief as investors found a new set of risks to trade. A temporary US sanctions waiver linked to Iran helped oil stabilise after a sharp fall, but it did not remove the bigger concern now driving cross-asset moves: a Federal Reserve that may be preparing to tighten again. Equities slipped across much of Asia, the dollar held near one-year highs and the yen stayed close to levels that keep Tokyo on alert. The m…
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