(Reuters) – A look at the day ahead in Asian markets from Jamie McGeever
Thursday, Oct. 13. 08:30 Eastern, 1230 GMT.
That is the moment U.S. September inflation data will be released, and when central banks around the world will have a clearer idea if they will need to wade into the foreign exchange market to support their currencies.
For some, it will be new territory. For others, it will be familiar territory. For all of them, being forced to spend billions of dollars of FX reserves is uncomfortable territory.
The dollar's record whoosh this year is wreaking havoc on global markets. A strong U.S. inflation print will likely push it even higher, intensifying the battle-ready resolve of central banks around the world.
Policymakers in Asia are on the front line, most notably those in Tokyo. The dollar is at a fresh 24-year high of almost 147.00 yen, above the levels that prompted the Bank of Japan to spend $20 billion in yen-supporting FX intervention last month.
GRAPHIC: Japanese yen & import prices – https://fingfx.thomsonreuters.com/gfx/mkt/akvezdrdlpr/JPYIMPORTS.jpg
The BOJ has deeper pockets than its peers, but dollar/yen is a far deeper market. Policymakers across the continent will probably be hoping for a soft U.S. inflation report, which would likely buy them some time.
But any relief might be fleeting. Liquidity across all markets is thin, and demand for collateral – mainly dollars – is high. Cross-currency basis swaps, essentially a measure of dollar shortage and overall stress in the market, are at alarming levels.
U.S. Treasury Secretary Janet Yellen said on Tuesday she sees no signs of stress or undue volatility in financial markets. Investors and policymakers around the world are unlikely to share her sense of calm, especially if U.S. inflation on Thursday comes in hotter than expected.
Key developments that could provide more direction to markets on Thursday:
IMF/World Bank meetings in Washington
Japan bank lending (September)
Japan producer price inflation (September)
China 1-year lending rate decision
(Reporting by Jamie NcGeever in Orlando, Fla.; Editing by Josie Kao)
The FDA has authorized the new omicron booster to be given to kids 5 and older.
World stocks slipped to a near 2-year low and Japan's yen was pinned near 1998 levels on Thursday, as investors braced for key U.S. inflation data later likely to shape the size of the Federal Reserve's next interest rate hike. Global markets have suffered a torrid few weeks and there was little sign of respite in either Asia or Europe [.EU] as weak equities knocked MSCI's 47-country world index down for a seventh straight day. The seemingly-unstoppable dollar held its ground in the currency markets to cement the yen's struggles, while bond traders were also watching Britain's gilt market with the Bank of England due to end its emergency stabilisation measures on Friday.
The Louis Vuitton and Dior owner expects further demand for luxury goods amid an uncertain economic and geopolitical backdrop.
California's ongoing drought is expected to impact the prices of key crops like tomatoes and onions, driving food inflation even higher for consumers.
The head of European planemaker Airbus on Wednesday reaffirmed a target of delivering a total of 700 aircraft in 2022 – a task he said was necessary to reach a separate monthly production target of 65 narrowbody jets in early 2024. "There is a lot on our plate … for the last three months of the year, but it is not very different from what we have done in '17, '18 and '19," Chief Executive Guillaume Faury said. That in turn will help determine whether Airbus can reach a longer-term goal of 75 narrowbody jets a month in 2025, he added in remarks setting out a sequence of interconnected challenges as supply chains grapple with energy costs and labour shortages.
The TikTok parent plans to eventually integrate music streaming within its short-video service and scale it to serve as a major platform for distributing music globally, according to the report that cited people with knowledge of the discussions. Shares of Spotify pared gains to trade flat in after-market trading on Wednesday, while Warner Music Group Corp gained 4%.
HARDY announced the release of his upcoming country/rock album "the mockingbird & THE CROW" along with a 2023 tour. The album features a song with Morgan Wallen.
(Bloomberg) — The yen weakened to a fresh two-decade low after Bank of Japan Governor Haruhiko Kuroda vowed to keep monetary policy loose in order to support an economic recovery, fueling speculation over whether Japanese authorities would step in once more to prop up the currency.Most Read from BloombergIntel Is Planning Thousands of Job Cuts in Face of PC SlumpHere’s How Weird Things Are Getting in the Housing MarketPutin Says All Infrastructure at Risk After Nord Stream HitAlex Jones Must Pa
In the latest TV show ratings, NBC’s The Voice dominated Monday in the demo, while CBS’ NCIS copped the night’s largest audience. NBC | The Voice drew 6.3 million total viewers and a 0.7 demo rating, steady week-to-week; read recap. On the heels of its full-season order, Quantum Leap (2.4 mil/0.4, read recap) was steady […]
The United States faces increased uncertainty due to rapid rises in interest rates, and the Federal Reserve should adjust policy as needed as it monitors global events and the impact of its actions on the domestic economy, the OECD said on Wednesday. "Risks and uncertainties are larger than usual and tilted to the downside," the Organisation for Economic Cooperation and Development said in a survey of the world's largest economy conducted every two years. "Inflation may prove surprisingly persistent, prompting more aggressive tightening of monetary policy," the Paris-based intergovernmental organisation said.
Phrases like "you've got three days left" and "the worst is yet to come" sound like takes from disaster movies rather than soothing voices of economic policymakers – and they leave global investors on edge over rising market stresses. There was confusion on Wednesday over just how long the Bank of England was willing to keep supporting the ailing UK bond market, which has been bamboozled by the government's unfunded tax-slashing plan and subsequent blow-up in pension fund hedging due to a surge in yields that followed. With the BoE forced to step up its intervention to buy gilts and inflation-linked bonds on Tuesday, markets assumed it would continue to offer support beyond its own self-imposed deadline of Friday to prevent wider firesales in assets related to the pensions workout.
While the rising cost of of eating out is pushing many to forgo a restaurant dinner, one food establishment that is yet to feel the burn is the Golden Arches. Despite raising the price of items on its menu by an average of 6% earlier this year, McDonald's is still seeing a steadily rising inflow of traffic. The latest recent report from Placer.ai found that, while overall restaurant visits fell 7.6% and 13.7% in August, McDonald's traffic rose by a respective 4.7% and 3.1%.
Roblox faces near-term obstacles, but it offers a unique platform with substantial growth opportunities.
Barclays analyst Mario Lu initiated coverage of metaverse company Roblox with an Underweight rating and $20 price target.
Today Microsoft announced its refreshed Surface Laptop 5, which just like before will be available in 13.5 and 15-inch models. The new notebooks will also feature 3:2 touchscreens with a very familiar brushed aluminum design. Actually, almost everything about the Surface Laptop 5 is the same as before, aside from the addition of new 12th-gen Intel CPUs and one Thunderbolt 4 port.
EnLink Midstream (ENLC) closed the most recent trading day at $9.60, moving +1.8% from the previous trading session.
XPO Logistics Inc's (NYSE: XPO) wholly owned subsidiary, RXO Inc, has priced an offering of $355 million of notes due 2027. The notes will be issued by XPO's wholly owned subsidiary, XPO Escrow Sub, LLC, which will merge with and into RXO, as a result of which the notes will become the direct obligations of RXO. The closing of the offering of the notes is expected to occur on or about October 25, 2022. The notes will bear interest at a rate of 7.500% per annum, payable semiannually in cash in ar
(NYSE: KFS) – Kingsway Financial Services Inc. ("Kingsway" or the "Company") today announced that it will report financial results for the three and nine months ended September 30, 2022 on November 10, 2022.
Companies In The News Are: AAL, CS, WBA, UBER.
Futures pared gains as the 10-year Treasury yield in flux with big inflation reports due. The S&P 500 is at bear market lows.