Published on: 2023-07-27
Updated on: 2023-11-20
Global shares were mostly flat while U.S. yields fell on Wednesday after the Fed delivered its 11th consecutive hike in interest rates aimed at reining in rising consumer prices.
The rate hike, which was in line market expectations, took the benchmark overnight interest rate to between 5.25% and 5.50% - the highest level since around the global financial crisis in 2007-2009.
Gold prices gained buoyed by a pullback in the dollar and bond yields. Oil prices settled around 1% lower as data showed U.S. crude inventories fell less than expected.
Commodities
Powell said ‘it’s not an environment where we want to provide a lot of forward guidance’ about future rate actions, and whether the Fed hikes again will be determined by where the data stands at the time of future policy gatherings.
Meanwhile, U.S. crude inventories drew by 600,000 barrels last week, according to the EIA, compared with estimates for a draw of 2.35 million barrels. Industry group American Petroleum Institute figures had indicated a 1.32 million-barrel build.
Wednesday's oil price losses were limited as inventories at Cushing, the pricing point for WTI, remain near their lowest levels since May, ANZ Research said in a note.
‘We expect Brent oil futures will rise to $85 per barrel by the fourth quarter on expectations that OPEC+ supply cuts and resilient demand will force global oil stockpiles to fall,’ Commonwealth Bank of Australia said in a note.
Forex
The dollar fell although the Fed citied still-elevated inflation as a rationale for what is now the highest U.S. central bank policy rate in 16 years.
The ECB is expected to deliver a similar hike on Thursday, but budding evidence of an economic slowdown has called into question the chances of another by year-end.
The BOJ will hold its meeting on Friday, which might shed light on its yield curve control policy. Speculation about a hawkish tweak to that policy led the yen to soar earlier in the month, but it has receded in recent days.
World's Best Broker
EBC Financial Group is a co-brand shared by a group of entities
including:
EBC Financial Group (SVG) LLC is authorized by the St.Vincent and the
Grenadines Financial Services Authority(SVGFSA),and the company
registration number is 353 LLC 2020, with registered address at Euro
House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the
Grenadines.
Other Relevant Entities
EBC Financial Group (UK) Limited is authorised and regulated by the
Financial Conduct Authority. Reference Number: 927552. Website: www.ebcfin.co.uk
EBC Financial Group (Cayman) Limited is licensed and regulated by the
Cayman Islands Monetary Authority (Number: 2038223). Website:
www.ebcgroup.ky
EBC Financial (MU) Limited is licensed and regulated by the the
Financial Services Commission, Mauritius (License Number GB24203273)
with registrated address at 3rd Floor, Standard Chartered Tower,
Cybercity, Ebene, 72201, Republic of Mauritius. Website for this entity
is maintained separately.
EBC Financial Group (Comoros) Limited is authorised by The Autonomous
Island of Anjouan, Union of Comoros Offshore Finance Authority with
License number L 15637/EFGC, with registered office address at Hamchako,
Mutsamudu, Autonomous Island of Anjouan, Union of Comoros.
EBC Financial Group (Australia) Pty Ltd (ACN: 619 073 237) is authorised
and regulated by the Australian Securities and Investments Commission
(Number: 500991). EBC Financial Group (Australia) Pty Ltd is a related
entity of EBC Financial Group (SVG) LLC. The two entities are managed
separately. The financial products and services offered on this website
are NOT provided by the Australian entity and no recourse against the
Australian entity is available.
EBC Group (Cyprus) Ltd, faciliates payment services to the licensed and
regulated entities within the EBC Financial Group strucutre, registered
under the Companies Law of Republic of Cyprus with the number HE 449205,
registered office address at 101 Gladstonos, Agathangelou Business
Centre, 3032 Limassol, Cyprus.
Business Address: The Leadenhall Building, 122 Leadenhall Street, London, United Kingdom, EC3V 4AB. Email Address :cs@ebc.com . Telephone : +44 20 3376 9662
Regional Restrictions:
EBC does not offer any services to citizens and residents of certain
jurisdictions including: Afghanistan, Belarus, Burma (Myanmar), Canada,
Central African Republic, Congo, Cuba, Democratic Republic of the Congo,
Eritrea, Haiti, Iran, Iraq, Lebanon, Libya, Malaysia, Mali, North Korea
(Democratic People's Republic of Korea), Russia, Somalia, Sudan, South
Sudan, Syria, Ukraine (including Crimea, Donetsk, and Luhansk Regions),
the United States, Venezuela, and Yemen.
Any Spanish on this website is for LATAM only and is not designated for
anyone in European Union or Spain For more information, please check out
our FAQs.
Any Portuguese on this website is for Africa only, and is not designated
for anyone in European Union or Portugal or Brazil. For more
information, please check out our FAQs.
Compliance Disclosure：The website can be accessed globally and is not specific to any entity. Your actual rights and obligations will be determined based on the entity and jurisdiction that you choose to be regulated.There may be local laws and regulations which prohibit or limit your rights to access, download, distribute, disseminate, share or otherwise use any or all of the documents and information published on this website.
Risk Warning: Trading Contracts for Difference (CFDs) are complex financial instruments and come with a high risk of losing money rapidly due to leverage. Trade on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade Forex and CFDs, you should carefully consider your trading objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial trading capital. We recommend that you seek independent advice and ensure you fully understand the risks involved before making any investment decision. Please read the relevant risk disclosure statements carefully before trading.
