Fed hike, Bank of Japan, interest rates, currencies

Oil prices climb after Fed rate hikes, demand fears persist

Oil prices rose after the Fed’s third consecutive rate hike.

Reuter also reported Chinese refiners expect the country to release up to 15 million tonnes of petroleum product export quotas for the rest of the year, citing people familiar with the matter.

Brent futures rose 0.45% to settle at $90.24 a barrel, while United States West Texas Intermediate also gained 0.45% to $83.3 a barrel.

— Lee Ying Shan

Fed hike should keep Asian risk assets under pressure, says JPMorgan

Asian risk assets, especially export-oriented companies, will remain under pressure in the near term after the Fed’s rate hike, according to Tai Hui, chief APAC market strategist at JPMorgan Asset Management.

Tai added that a strong U.S. dollar is likely to persist, but monetary policy tightening in most Asian central banks – with the exception of China and Japan – should help limit the extent of currency depreciation. Asian currency.

The US dollar indexwhich tracks the greenback against a basket of its peers, strengthened strongly and last settled at 111.697.

—Abigail Ng

Bank of Japan remains stable and maintains its policy of controlling the yield curve – the yen weakens above 145

The Bank of Japan kept interest rates unchanged, according to an announcement posted on its website – meeting expectations set by economists in a Reuters poll.

The Japanese yen weakened to 145 against the greenback shortly after the decision.

“Japan’s economy has recovered as the recovery in economic activity has progressed while public health has been protected from Covid-19, although it has been affected by factors such as rising commodity prices,” the central bank said in the statement.

Jihye Lee

CNBC Pro: This fund manager beats the market. Here’s what he’s betting against

Stock markets are down but the fund managed by Patrick Armstrong at Plurimi Wealth continues to post positive returns. The fund manager has a number of short positions to play on market volatility.

Pro subscribers can find out more here.

— Zavier Ong

Asian currencies weaken after third consecutive Fed hike

Currencies in the Asia-Pacific region weakened further after the US Federal Reserve made its third consecutive rate hike of 75 basis points.

China is down yuan weakened past 7.09 to the dollar, near levels not seen since June 2020.

the Japaneses yen weakened to 144.51, while the Korean won also rose above 1,409 against the greenback – the weakest since March 2009.

The Australian dollar fell to $0.6589.

– Jihye Lee

2-year US Treasury yield nears 2007 highs

Sterling slips again to hover around 37-year low

The Pound sterling fell further in morning trade in Asia, hitting $1.1217 – its lowest level since 1985.

The currency has lost ground against the US dollar this year as economic concerns rise.

Analysts are divided whether the UK central bank will raise rates by 50 basis points or 75 basis points later today.

The British pound last traded at $1.1223.

—Abigail Ng

CNBC Pro: Morgan Stanley’s Mike Wilson names key attribute he loves in stocks

Morgan Stanley’s Mike Wilson remains on the defensive in the face of continued market volatility this year. It names the key attribute it looks for in actions.

Stocks with this attribute have been “rewarded” this year, with the trend expected to persist until the market turns more bullish, according to Wilson.

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— Zavier Ong

Bank of Japan expected to maintain yield curve control for remainder of 2022: DBS

Substantial adjustments to Bank of Japan policies are not expected until after central bank leadership changes in mid-2023, DBS Group Research said in a note on Tuesday.

But the BOJ may consider some “policy adjustments”, such as widening the target range by 10 basis points, in response to market pressures, the analysts wrote.

He added that “regardless of the intervention”, the dollar-yen could test 147.66 last seen in August 1998, adding that they do not rule out USD/JPY going above 150 “without a hard landing in the US causing Fed cuts”.

—Abigail Ng

Stock futures open lower

U.S. stock futures fell Wednesday night after a volatile session in the major averages as traders weighed another big rate hike from the Federal Reserve.

Dow Jones Industrial Average futures fell 16 points, or 0.05%. S&P 500 and Nasdaq 100 futures fell 0.19% and 0.31% respectively.

—Sarah Min

Stocks slide, Dow closes 522 points lower in volatile trading session

Stocks faltered on Wednesday but ended the session in the red after the Federal Reserve announced another 75 basis point rate hike.

The Dow Jones Industrial Average fell 522.45 points, or 1.7%, to close at 30,183.78. The S&P 500 slid 1.71% to 3,789.93 and the Nasdaq Composite plunged 1.79% to 11,220.19.

— Samantha Subin

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