HONG KONG-Most Asian markets slipped Wednesday as traders trod water ahead of a key speech by Federal Reserve boss Janet Yellen this week, while oil suffered fresh losses on persistent glut worries.
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Fed Chair Yellen may provide fresh clues on the timing of the next USA rate hike at a speech during an annual meeting of central bankers in Jackson Hole, Wyoming, on Friday. The meet, which starts Thursday, has traditionally been used by Fed chiefs as a platform to signal the direction of monetary policy. Recent hawkish comments from policymakers have raised investors’ expectations that she might adopt a less cautious tone on rates.
While Wall Street is trading near record levels, volumes have been below average in the past few sessions as the US earnings season winds down and traders avoid major bets until a clearer picture on monetary policy emerges.
“A drop in United Kingdom mortgage approvals to a one-year low in July failed to dent sentiment towards sterling, with overall lending figures suggesting the Brexit vote has had little impact on consumers’ borrowing appetite”, said Chris Saint, senior analyst at Hargreaves Lansdown currency service.
Contracts on the Dow Jones Industrial Average added five points, less 0.1 percent, to 18,533 today. USA gold slipped 0.3 per cent to $1,341.60 an ounce. IG reports that the final reading is expected to be unchanged from the preliminary estimate which pointed to 0.4-percent growth, down from the first-quarter’s 0.7 percent. The financials sector, which stands to benefit from higher rates, posted the smallest decline, of 0.07 percent.
Markets are pricing in around a 21 per cent chance of a hike in September, but a 50 per cent chance of at least one hike by the end of the year, according to CME FedWatch.
That, in part, has helped defensive sectors enjoy strong gains this year.
The Philippine Stock Exchange Index fell 69.05 points, or 0.9 percent, to 7,866.13 on a value turnover of almost P10 billion.
Express Inc plunged 24.7 percent after the apparel maker slashed its full-year earnings outlook.
Declining issues outnumbered advancing ones on the NYSE by 1,810 to 1,046.
The dollar rose Wednesday with the Federal Reserve s policy plans in focus, while the South Korean won fell after the North tested a submarine-launched missile, bringing geopolitical tensions back into focus.
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The S&P 500 index showed 15 new 52-week highs and no new lows, while the Nasdaq recorded 70 new highs and 10 new lows.
