FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews

Fed Hawkish Policy Leads to Slip of Asian Shares

17 January 2022

On Friday, Asian stocks plummeted as a new round of hawkish statements from Federal Reserve officials bolstered predictions that interest rates in the United States might rise as soon as March, putting markets on edge for tighter monetary conditions. In mid-afternoon trade, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.9 %. Meanwhile, Australia was down 1.1 %. Japan’s Nikkei was down 1.3 %.

Outlook on Asian Market

South Korean equities slumped 1.4 % on Friday after the country’s central bank raised its benchmark rate by 25 basis points to 1.25 %, as expected, returning it to pre-epidemic levels.

The blue-chip index in China fell 0.5 %, while the Hang Seng index in Hong Kong fell 0.9 %. “Right now, everyone is quite jittery. It’s because aggressive Fed policy has the potential to put everything under strain. “Kyle Rodda, a market analyst in Melbourne, echoed this sentiment.

10-year Treasury notes yielded 1.720 % in the bond market, ending significantly below Monday’s two-year highs, indicating investors’ preference for government debt over risky technology and growth stocks. The Bank of Japan discusses when it will begin raising interest rates, which has pushed up the yen and Japanese government bond yields.

Market Fluctuations

The five-year JGB yield touched -0.015 %, it’s the highest level since the BOJ implemented negative rates in January 2016. The yen recently traded at 113.70 yen after reaching its highest level versus the greenback in three and a half weeks. The dollar index fell 0.1 % to 94.638 after touching a two-month low, weighed down by the euro’s strength, which touched a fresh two-month high of $1.1482.

Gold was 0.3 % higher at $1,827 an ounce in commodities markets, although it was still 0.3 % below its January high of $1,831.

Oil futures fell on anticipation that Washington will intervene shortly to lower prices, which are still over $80 per barrel. At the same time, COVID-19 outbreaks in China hampered demand. Brent crude remained unchanged at $84.49 per barrel, while US crude dropped 18 cents to $81.95.




Record-breaking but near-peak inflation in Britain
Record-breaking but near-peak inflation in Britain

UK consumer prices rose by 2.5% in April, the second-biggest monthly gain in the indicator’s history since 1988. Annual inflation jumped from 7% to 9%, unseen in the indicator’s history...

19 May 2022

GBPCHF on a strong footing
GBPCHF on a strong footing

GBPCHF is testing some key levels here at the 1.25 level and looking very interesting. Read below to find out more. The quid has a few factors working in its favour...

18 May 2022

Crypto Markets Slide as TerraUSD and Tether Breaks its Peg with the U.S. Dollar
Crypto Markets Slide as TerraUSD and Tether Breaks its Peg with the U.S. Dollar

Stablecoins have one job. To maintain their value at $1 per coin. That job failed after Tether (USDT), the most prominent "stablecoin" and integral part of the cryptocurrency ecosystem...

18 May 2022

The Impact of a Major Crypto Market Crash on the Indian Stock Market
The Impact of a Major Crypto Market Crash on the Indian Stock Market

Bitcoin and Ethereum are currently trading at their lowest levels. There are two major factors behind this week’s cryptocurrency crash. The first is rising interest rates around the world...

17 May 2022

European Stocks Stable After Extreme Slide Since 2020
European Stocks Stable After Extreme Slide Since 2020

European stocks and U.S. stock futures rose. Markets developed steadily after fears of global growth led to a sharp drop from the previous session. The Stoxx Europe 600 stock index added 1 percent...

13 May 2022

Dollar growth is a key market driver
Dollar growth is a key market driver

The euro steadied against the U.S. dollar on Wednesday on expectations that the European Central Bank will raise its benchmark interest rate in July for the first time...

13 May 2022

Editors' Picks

HFM information and reviews
IronFX information and reviews
FXCM information and reviews
LegacyFX information and reviews
NordFX information and reviews
FP Markets information and reviews
FP Markets

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.