News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Indian Morning Briefing: Asian Markets Fall After Fed Flags Rate Hikes

01/26/2022 | 10:16pm EDT
GLOBAL MARKETS 
DJIA           34168.09   -129.64    -0.38% 
Nasdaq         13542.12      2.82     0.02% 
S&P 500         4349.93     -6.52    -0.15% 
FTSE 100        7469.78     98.32     1.33% 
Nikkei Stock   26382.57   -628.76    -2.33% 
Hang Seng      23807.40   -482.50    -1.99% 
Kospi           2638.69    -70.55    -2.60% 
SGX Nifty*     16922.00   -342.0     -1.98% 
*Feb contract 
 
USD/JPY   114.58-59   -0.08% 
Range     114.78   114.48 
EUR/USD   1.1229-32   -0.09% 
Range     1.1245   1.1227 
 
CBOT Wheat March   $7.950 per bushel 
Spot Gold 
Nymex Crude (NY)  $86.60      $1.00 
 
 
US STOCKS 

U.S. stocks gave up their gains after the Federal Reserve signaled intentions to raise interest rates in mid-March, offering the most-detailed vision yet of its plan to address rising inflation.

The Fed's statement indicated approval of a final round of asset purchases, bringing its stimulus program to a conclusion by March. "It will soon be appropriate to raise the target range for the federal-funds rate," the statement said.

Stocks turned lower during Fed Chairman Jerome Powell's press conference, which followed the statement. The S&P 500 slipped 0.15% following the Fed's afternoon announcement. The broad index has declined in five of the past six trading days.

The tech-focused Nasdaq Composite Index edged less than 0.1% higher, while the Dow Jones Industrial Average fell about 0.4%.

 
 
ASIAN STOCKS 

Japanese stocks were lower, dragged by falls in tech and electronics stocks, following the Fed's signals for tightening. Earnings are in focus, with Shin-Etsu Chemical and Canon Inc. scheduled to report their results later in the day. The Nikkei Stock Average was 0.3% lower at 26931.44.

South Korea's benchmark Kospi fell 0.9% to 2684.97 in early trade, dragged by energy, steel and biotech stocks, with the Fed signaling its intention to raise interest rates in mid-March weighing on investor sentiment. Geopolitical tensions over Ukraine and the fast-spreading Omicron variant also sapped risk appetite.

Hong Kong's Hang Seng Index fell 1.4% to 23952.01 on the Fed signaling its intention to raise rates in mid-March. While Fed Chair Powell said there was room for rate hikes and a will to reduce a substantial amount of balance sheet, he didn't specify the pace of tightening, which could bring more uncertainties to the market, KGI Securities said. It expects local stocks to consolidate today, while Chinese technology stocks could fall following a weak performance in the U.S. market. The Hang Seng Tech Index declined 2.2% to 5471.50.

Chinese stocks fell, as the market continued a rangebound trading pattern so far this week. The benchmark Shanghai Composite Index shed 0.5% to 3437.33, while the Shenzhen Composite Index was down 1.0% at 2304.88. The ChiNext Price Index declined 1.0% to 2973.05. China Fortune Securities said the downturn is likely a result of investors' tendency to cash out ahead of the Lunar New Year holidays. But the brokerage thinks market fundamentals show that most risk factors, including the Fed's plans to raise interest rates, have been priced in, and a recovery could be expected after the holidays.

FOREX 

Asian currencies weakened against the U.S. dollar after Fed Chairman Jerome Powell on Wednesday signaled the U.S. central bank is ready to raise rates at its March meeting and could continue to lift them quicker than it did during the past decade. The USD Index has yet to fully price in yield support that has formed in the past several months, let alone what may be in store in the coming months, Westpac said. The ICE USD Index climbed 0.7% to 96.58. USD/KRW rose 0.3% to 1,202.83, USD/SGD gained 0.2% to 1.3499 and AUD/USD slipped 0.6% to 0.7075.

METALS 

Gold edged lower after the FOMC laid out plans for an interest-rate rise in March. "Powell's hawkish press conference sent gold to fresh lows as the Fed laid out the possibility of a much more aggressive balance sheet reduction," Oanda said. Growing risk appetite among investors are also putting downward pressure on safe-haven assets, it added. However, rising geopolitical risks remain, so "the path higher for gold is there, but it will likely be a tough grind higher," Oanda said. Spot gold was recently 0.2% lower at $1,816.21.

OIL SUMMARY 

Oil prices may only rise by $2/bbl as a fallout of ongoing Russia-Ukraine tensions, given that only a limited quantity of undivertible pipeline volume will be affected, Goldman Sachs said. The investment bank also believes Western oil sanctions against Russia seem improbable, amid a potential retaliation by Russia on its gas exports to Europe, where natural gas inventories are already tight. Both front-month Brent and WTI were 0.7% lower, at $89.31/bbl and $86.75/bbl, respectively.

 
 
TOP HEADLINES 
Fed Interest-Rate Decision Tees Up March Increase 
Stocks Turn Lower After Fed Announcement on Interest Rates 
U.S. Government Bond Yields Rise After Fed Announcement 
Analysis: Fed Grabs the Market's Punch Bowl 
Justice Stephen Breyer to Retire From Supreme Court 
New SEC Proposal Could Steeply Increase Private-Equity Reporting, Industry Says 
China Industrial Profits Rose 34.3% in 2021 
Australian Fourth-Quarter Import Price Rise Sends Inflation Warning 
Bank of Canada Says Rate Increases Are Coming 
U.K. Car Manufacturing Hits 65-Year Low 
WTO Arbiter Sides With China in Tariff Fight With U.S. 
New Zealand Inflation Reaches Three-Decade High 
North Korea Fires Short-Range Missiles in Sixth Weapons Test of New Year 
Biden Touts Build Back Better in Meeting With CEOs 
U.S. Delivers Response to Russian Demands Amid Ukraine Crisis 
Samsung's Fourth-Quarter Revenue Is Best Ever 
LG Energy Solution Makes Strong Debut in South Korea 
Amazon Faces Unionization Battle in Staten Island 
China Evergrande Promises to Play by the Book in Offshore Debt Restructuring 
William Ackman's Hedge Fund Takes Stake in Netflix 
Whirlpool Says Omicron Will Keep Appliances in Short Supply 
BJ's Wholesale Is Buying Up Distribution Centers 
AARP, Google to Launch Digital Skills Program for Older Workers 
Abbott's Rapid Covid-19 Tests Boost Quarterly Sales Growth 
Kimberly-Clark's Costs Are a Problem. The Stock Is Down After Earnings. 
AT&T Cautions Wireless Industry's Gains Will Slow 
Elon Musk Says Tesla Will Give Priority to Deliveries Over New Vehicles in 2022 
Intel Earnings Dropped, Revenue Edged Higher 
Boeing Reports Loss as 787 Charges Mount 
Australia's Woodside to Withdraw From Myanmar 
 
 

(END) Dow Jones Newswires

01-26-22 2215ET

Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. -1.34% 2178.16 Delayed Quote.-24.81%
DJ INDUSTRIAL 0.03% 31261.9 Real-time Quote.-13.99%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 0.00% 61.75 Delayed Quote.-17.11%
Latest news "Economy & Forex"
09:22aNewly appointed French minister denies rape accusations
RE
08:11aExclusive-India considering spending additional $26 billion to fight inflation -sources
RE
08:02aAustria's first suspected monkeypox case reported in Vienna
RE
07:47aChina makes 10 billion yuan available to subsidise grain growers
RE
07:46aCZECH CENTRAL BANK CHIEF : rates likely to rise in June if forecast confirmed
RE
07:01aAnalysis-Harangued by Trump, Georgia's governor poised to rebuke him in midterm vote
RE
06:59aPummeled by Russian offensive in the east, Ukraine rules out ceasefire
RE
06:54aRussia looms large on Scholz's first Africa tour as chancellor
RE
06:39aUKRAINE AND RUSSIA : What you need to know right now
RE
06:32aUKRAINE AND RUSSIA : What you need to know right now
RE
Latest news "Economy & Forex"