The inflation data suggested a greater probability of a December move from the US central bank and a quicker pace of rate increases next year, analysts said.
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While the inflation data was not enough to convince traders that the Fed could raise rates next week, it suggested a greater possibility of a December move from the USA central bank and a quicker pace of rate increases next year, analysts said.
September 16 (BusinessDesk) – The New Zealand dollar rose back above 73 U.S. cents after figures showed weaker United States retail sales, manufacturing, and industrial production, dimming bets for an early interest rate hike by the Federal Reserve. In the 12 months through August, the CPI increased 1.1 percent after advancing 0.8 percent in July.
The broader all-share index advanced 89 points, or 2 percent, to settle at 4,663.29, on a value turnover of P8.9 billion. Following his remarks, USA stocks dipped to their lowest in two weeks.
The Dow Jones industrial average fell about 30 points after opening marginally higher, with Chevron contributing the most losses.
Apple’s shares rose as much as 3.5% and gave the three major indexes their biggest boost after the company said that the first batch of its new iPhone 7 Plus sold out globally.
The S&P BSE Sensex surged as much as 366 points in mid-morning trade on Friday, led by gains in the shares of HDFC Bank, RIL, Axis Bank, ICICI Bank and L&T. The sectors have each climbed about 13 percent in 2016, topping other groups, but have pared gains in recent months.
Apple Inc. suppliers surged after the iPhone maker climbed to its highest since December in the US amid growing optimism over the iPhone 7’s market reception. The Federal Reserve’s Open Market Committee, which last raised borrowing costs in December 2015 to end seven years of near-zero rates, meets on September 20-21, with a news conference by chair Janet Yellen due on the Wednesday.
Still, by shifting its policy focus to negative rates, the BOJ hopes to dispel growing market views that the unpopularity of negative rates among the public would discourage it to cut rates, even if it would arrest unwelcome rises in the yen.
The EUR/USD lost 0.465 percent in the last 5 days.
Oil prices pulled back on the resumption of exports from Libya and Nigeria and worries that US rig counts would continue to rise.
Also on Thursday, US weekly jobless claims data showed a tightening labour market with subdued layoffs last week, while underlying producer price inflation crept up in August. Headline CPI rose by 0.2% versus the 0.1% expected, while the core data rose by 0.3% against the 0.2% forecast.
Colonial’s main gasoline and distillate line was shut on Friday after a 6,000-barrel leak in Alabama.
BOJ Gov. Haruhiko Kuroda acknowledged this month that the negative-rate program has hit profits at financial institutions, but said it hadn’t hurt bank lending.
He added that elements feeding into volatility also include the US presidential election and global economic conditions.
“I think the market has somewhat priced in a (rate) cut as well as a tweak to the QE programme”, said Sim Moh Siong, FX strategist for Bank of Singapore. It believes a “dovish hike” is more likely than a “hawkish hold”.
Additionally, September has thus far seen a general deterioration of U.S. economic data in the form of substantially worse-than-expected releases regarding employment (NFP) and both the manufacturing and services industries (PMI), that have significantly lowered the market’s expectations for a September rate hike. The price of crude oil fell 3%. Some expected more pressure on the market as Nigerian and Libyan supplies return. In Nigeria, offers for October-loading of its Qua Iboe crude despite a force majeure in place.
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Global bond markets were unnerved by what many investors saw as BoJ leak that ran in a major Japanese financial newspaper this week that appeared to muster support for this “tweaking option”.
