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Markets Update: Asia equities broadly stronger post-FOMC and generally positive US and Asia earnings; Weaker USD post-FOMC
Economic Calendar
Global Markets Roundup: 27 July 2023
The Federal Reserve raised interest rates by 25 basis points to 5.25%-5.50%, as expected. The statement was a copy-and-paste job from June, and Chairman Powell avoided committing to future rate hikes, stressing a data-dependent approach. Markets initially perceived the presser as dovish, with US equity futures edging higher overnight and APAC stocks also firmer.
The dollar index (DXY) slipped below 101, EUR/USD eyed 1.11 ahead of the ECB, USD/JPY oscillated around 140, and antipodeans led the majors.
APAC Stocks Rally as Risk Appetite Improves
Asian stocks rallied on Wednesday, with gains led by Australia, South Korea, and Hong Kong. The rally was driven by improved risk appetite, as investors digested the outcome of the FOMC meeting and looked ahead to the ECB meeting today.
Fed Leaves Rates Unchanged, Powell Signals More Hikes to Come The Federal Reserve left interest rates unchanged at 5.25%-5.50% at its meeting on Wednesday. However, Fed Chair Jerome Powell signaled that the central bank is likely to continue raising rates in the coming months, as it seeks to combat inflation.
ECB Meeting in Focus
The European Central Bank (ECB) is scheduled to meet on Thursday, and investors will be looking for clues about the central bank's plans for monetary policy. The ECB is under pressure to raise interest rates, but it is also concerned about the impact of higher rates on the eurozone economy.
Commodity Prices Mixed
Commodity prices were mixed on Wednesday. Oil prices rose, as the risk appetite improved and the dollar weakened. Gold prices held on to their gains, while copper prices fell.
Looking Ahead Highlights for the day include German Gfk, US Durable Goods, PCE Prices Advance, IJC, GDP Advance, ECB Policy Announcement and Press Conference with Lagarde, Supply from Italy & US. Earnings from L'Air Liquide, BNP Paribas, Mercedes-Benz, ArcelorMittal, L'Oreal, Poste Italiane, Renault, Schneider Electric, STMicroelectronics, TotalEnergies, Volkswagen, Anglo American, Barclays, BT, Shell, McDonald's, Ford, Abbvie, Mastercard & Intel Corp.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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