Federal Before the Fed's interest rate decision, the global market is on high alert.
As the market's fantasy of the Fed's non-violent interest rate hike was completely shattered, European stocks opened high and closed low and , the three major US stock futures index fell all the way; in the foreign exchange market, US dollar index repeatedly tested 110 key points; in the bond market, 2-year US bond "sword pointing" 4%, and 30-year US bond yield hit a new high in 2014.
At present, the market generally expects that the Federal Reserve will announce a 75 basis point rate hike on Wednesday's interest rate resolution, raising the target range of the federal funds rate to 3%-3.25%. However, some analysts believe that after U.S. inflation was higher than expected in August, the Fed may take measures to adjust interest rates by 100 basis points, exacerbating the possibility of major economies in the United States and even the world falling into recession.
Wall Street News mentioned that CME FedWatch pricing shows that investors currently expect the probability of raising interest rates by 75 basis points on Wednesday as high as 84%, while the probability of raising interest rates by 100 basis points is only 16%. In addition, for investors who are paying attention to the market trends of 6-18 months, the dot chart and terminal interest rate (peak of federal funds rate) forecasts are more worthy of attention.
Stock Market: European stocks opened high and closed low, the three major US stock futures fell,
As of press time, German DAX30 index fell 0.73%, Italy's FTSE MIB index fell 0.92%, French CAC40 index fell 0.87%, the UK's FTSE 100 index fell 0.16%, and the European Stoke 50 index fell 0.61%.
US stock futures , as of press time, Dow futures, mainly blue-chip stock , fell 0.32%, S&P 500 index futures fell 0.41%, and Nasdaq futures, mainly technology stock , fell 0.53%.
bond market: 2-year U.S. bonds are "sword-to-sword" 4%, 2y-10y U.S. bonds are still deeply inverted
As the market's fantasy of the Fed's non-violent interest rate hikes are completely shattered, the yield on the two-year Treasury bond, which is more sensitive to policies, has risen to 3.96%, reaching the highest level since 2007, just one step away from the 4% mark.
In addition, as of press time, the 10-year U.S. Treasury yield was 3.549%, and the 2-year U.S. Treasury yield was still deeply inverted, reflecting the market's concerns about a hard landing. The yield on the 30-year U.S. Treasury bond rose to 3.585%, a high since April 2014.
foreign exchange market: The US dollar index repeatedly tests 110, and the market is waiting for the Federal Reserve's resolution
Before the Federal Reserve's interest rate resolution, the US dollar index is still repeatedly testing the key resistance level 110. As of press time, the US dollar index was 109.98.
Some analysts pointed out that if the Fed rate hike in the evening is stronger than expected, it will be expected to help the US dollar rise and break through 110 points, and other non-US currencies will also break the table; if the Fed is considered not as tough as expected, this week's FOMC meeting may lower the US dollar index.
Products: Brent oil and US oil rose slightly
As of press time, WTI crude oil rose 0.61% to $85.88 per barrel; Brent crude oil rose 0.74% to $92.68 per barrel.
This article comes from Wall Street News, welcome to download the APP to view more
