Reserve Bank of New Zealand suggested more hikes
INR too recovered from a record-low, despite higher oil prices. It is trading further stronger today, in line with other Asian currencies
FinTech BizNews Service
Mumbai, November 29, 2023: US Conference Board consumer confidence index rose to 102 in Nov’23 (est. 101.0) from 99.1 in Oct’23. Even so, consumers’ expectations of a recession next year remained elevated. Comments from Fed’s Christopher Waller hinted at a likely Fed pivot in the coming months, if inflation continues to tread lower. On the other hand, another key Fed official Michelle Bowman stated that more policy tightening might be required. While the Fed is likely to keep policy rates on hold in Dec’23, odds of rate cut next year have risen, with some analysts expecting a rate cut as soon as Mar’24. Separately, consumer confidence in Germany edged up marginally to -27.8 in Dec’23 from -28.3 in Nov’23. Reserve Bank of New Zealand kept its policy rate steady at 5.5%, but projected a peak rate of 5.7%, suggesting more hikes.
- Global stocks ended mixed. US stocks were supported by dovish comments of some Fed officials. Even Christopher Waller, one of the hawkish Fed official said that Fed is well positioned to push inflation to 2% target. Amongst Asian stocks, Hang Seng fell the most, led by decline in banking stocks. Sensex rose by 0.3%, supported by power and oil and gas stocks. It is trading higher today, while Asian stocks are trading mixed.
- Global currencies continued to gain against the dollar. DXY fell by 0.4% to its lowest since Aug’23, as traders anticipate sooner than expected rate cuts from the Fed. JPY appreciated the most by 0.8%. INR too recovered from a record-low, despite higher oil prices. It is trading further stronger today, in line with other Asian currencies.
- Global yields broadly closed lower. US 10Y yield fell the most as a pivot in policy rate is soon anticipated amidst dovish comments from some Fed officials. Germany’s and UK’s 10Y yield also softened. In UK, BRC shop price index moderated, providing some comfort on inflation. India’s 10Y yield inched a tad bit by 1bps. It is trading lower at 7.24% today, taking cues from global markets.