Market sentiment remains weak on Friday, extending the previous day’s sour mood, as investors anticipate higher interest rates from the US Federal Reserve (Fed) due to recent hawkish comments from Fed policymakers and upbeat US data. The S&P 500 Futures dropped 0.30% to 4,086, near its weekly low, after falling the most in a month on Thursday. Meanwhile, the US 10-year Treasury bond yields rose to a fresh high since December 30, 2022, up five basis points to 3.896% by the press time.
Cleveland Fed President Loretta Mester hinted at the recession woes while reiterating the defense of higher rates. US President Joe Biden also fired shots at his Chinese counterpart while conveying the expectations for a talk with the Chinese leader. The Pentagon’s Senior Official is also visiting Taiwan, which could further strain the US-China relations.
St. Louis Federal Reserve’s James Bullard further bolstered the hawkish Fed bias while saying that “Continued policy rate increases can help lock in a disinflationary trend during 2023, even with ongoing growth and strong labor markets, by keeping inflation expectations low.”
US data also indicated higher rates from the US central bank. The US Producer Price Index (PPI) for January jumped the most since June with 0.7% MoM figure. The US Initial Jobless Claims for the week ended on February 10, 194K versus 200K expected and 195K prior, also offered extra blow to the sentiment. On the other hand, a slump in the Housing Starts for January and the Philadelphia Fed Manufacturing Survey for February had a limited effect.
The Reuters’ FEDWATCH read signals that the interest rate futures market shows US rates could peak close to 5.25% by July before dropping to 5.0% by the end of the year. This is higher than the 5.10% peak conveyed by the Fed in the December meeting, which hints at a few more rate hikes from the US central bank.
Overall, geopolitical headlines, Fed talks and US data are weighing on sentiment, despite a light calendar.
The market sentiment has remained weak since Thursday, as investors anticipate higher interest rates from the US Federal Reserve (Fed) due to recent hawkish comments from Fed policymakers and upbeat US data. The S&P 500 Futures dropped 0.30% to 4,086, near its weekly low, after falling the most in a month on Thursday. Similarly, the US 10-year Treasury bond yields rose to a fresh high since December 30, 2022, up five basis points to 3.896% by the press time.
Cleveland Fed President Loretta Mester hinted at the recession woes while reiterating the defense of higher rates. US President Joe Biden also fired shots at his Chinese counterpart while conveying the expectations for a talk with the Chinese leader. The Pentagon’s Senior Official is also visiting Taiwan, which could further strain the US-China relations.
St. Louis Federal Reserve’s James Bullard further bolstered the hawkish Fed bias while saying that “Continued policy rate increases can help lock in a disinflationary trend during 2023, even with ongoing growth and strong labor markets, by keeping inflation expectations low.”
The US data also indicated higher rates from the US central bank. The US Producer Price Index (PPI) for January jumped the most since June with 0.7% MoM figure. The US Initial Jobless Claims for the week ended on February 10, 194K versus 200K expected and 195K prior, also offered extra blow to the sentiment. On the other hand, a slump in the Housing Starts for January and the Philadelphia Fed Manufacturing Survey for February had a limited effect.
The Reuters’ FEDWATCH read signals that the interest rate futures market shows US rates could peak close to 5.25% by July before dropping to 5.0% by the end of the year. This is higher than the 5.10% peak conveyed by the Fed in the December meeting, which hints at a few more rate hikes from the US central bank.
Overall, geopolitical headlines, Fed talks and US data are weighing on sentiment, despite a light calendar. This could be detrimental to the risk appetite, as investors remain cautious about higher rates from the US central bank. The S&P 500 Futures are expected to remain pressured near its weekly low, while the US 10-year Treasury bond yields could continue to rally to its fresh highs.
The US Producer Price Index (PPI) for January revealed a 0.7% MoM figure, the highest since June. The US Initial Jobless Claims for the week ended on February 10, 194K versus 200K expected and 195K prior, also provided evidence of the Fed’s hawkish stance. The slump in the Housing Starts for January and the Philadelphia Fed Manufacturing Survey for February had a limited effect.
The Reuters’ FEDWATCH read signals that the interest rate futures market shows US rates could peak close to 5.25% by July before dropping to 5.0% by the end of the year. This is higher than the 5.10% peak conveyed by the Fed in the December meeting, which hints at a few more rate hikes from the US central bank. The higher policy pivot from the US central bank could be detrimental to the risk appetite, as investors remain cautious about higher rates.
Geopolitical headlines, Fed talks and US data are also weighing on sentiment. US President Joe Biden fired shots at his Chinese counterpart while conveying the expectations for a talk with the Chinese leader. The Pentagon’s Senior Official is also visiting Taiwan, which could further strain the US-China relations. St. Louis Federal Reserve’s James Bullard further bolstered the hawkish Fed bias while saying that “Continued policy rate increases can help lock in a disinflationary trend during 2023, even with ongoing growth and strong labor markets, by keeping inflation expectations low.”
The market sentiment has remained weak since Thursday, as investors anticipate higher interest rates from the US Federal Reserve (Fed). The S&P 500 Futures dropped 0.30% to 4,086, near its weekly low, after falling the most in a month on Thursday. Meanwhile, the US 10-year Treasury bond yields rose to a fresh high since December 30, 2022, up five basis points to 3.896% by the press time.
Overall, geopolitical headlines, Fed talks and US data are weighing on sentiment, despite a light calendar. This could be detrimental to the risk appetite, as investors remain cautious about higher rates from the US central bank. The S&P 500 Futures are expected to remain pressured near its weekly low, while the US 10-year Treasury bond yields could continue to rally to its fresh highs.
The market sentiment has been weak since Thursday, as investors anticipate higher interest rates from the US Federal Reserve (Fed) due to recent hawkish comments from Fed policymakers and upbeat US data. The S&P 500 Futures dropped 0.30% to 4,086, near its weekly low, after falling the most in a month on Thursday. Meanwhile, the US 10-year Treasury bond yields rose to a fresh high since December 30, 2022, up five basis points to 3.896% by the press time.
Cleveland Fed President Loretta Mester hinted at the recession woes while reiterating the defense of higher rates. US President Joe Biden also fired shots at his Chinese counterpart while conveying the expectations for a talk with the Chinese leader. The Pentagon’s Senior Official is also visiting Taiwan, which could further strain the US-China relations.
St. Louis Federal Reserve’s James Bullard further bolstered the hawkish Fed bias while saying that “Continued policy rate increases can help lock in a disinflationary trend during 2023, even with ongoing growth and strong labor markets, by keeping inflation expectations low.”
US data also indicated higher rates from the US central bank. The US Producer Price Index (PPI) for January jumped the most since June with 0.7% MoM figure. The US Initial Jobless Claims for the week ended on February 10, 194K versus 200K expected and 195K prior, also offered extra blow to the sentiment. On the other hand, a slump in the Housing Starts for January and the Philadelphia Fed Manufacturing Survey for February had a limited effect.
The Reuters’ FEDWATCH read signals that the interest rate futures market shows US rates could peak close to 5.25% by July before dropping to 5.0% by the end of the year. This is higher than the 5.10% peak conveyed by the Fed in the December meeting, which hints at a few more rate hikes from the US central bank.
Overall, geopolitical headlines, Fed talks and US data are weighing on sentiment, despite a light calendar. This could be detrimental to the risk appetite, as investors remain cautious about higher rates from the US central bank. The S&P 500 Futures are expected to remain pressured near its weekly low, while the US 10-year Treasury bond yields could continue to rally to its fresh highs.
The higher policy pivot from the US central bank could cause a shift in the market sentiment, as investors remain cautious about higher rates. The US Producer Price Index (PPI) for January revealed a 0.7% MoM figure, the highest since June, while the US Initial Jobless Claims for the week ended on February 10, 194K versus 200K expected and 195K prior, also provided evidence of the Fed’s hawkish stance.
The geopolitical headlines and US data are also weighing on sentiment. US President Joe Biden fired shots at his Chinese counterpart while conveying the expectations for a talk with the Chinese leader. The Pentagon’s Senior Official is also visiting Taiwan, which could further strain the US-China relations. St. Louis Federal Reserve’s James Bullard further bolstered the hawkish Fed bias while saying that “Continued policy rate increases can help lock in a disinflationary trend during 2023, even with ongoing growth and strong labor markets, by keeping inflation expectations low.”
In conclusion, market sentiment remains weak during early Friday, extending the previous day’s sour sentiment, as market players anticipate higher Fed rates amid hawkish talks from the US central bank policymakers and upbeat US data. The S&P 500 Futures dropped 0.30% to 4,086 while poking the weekly low marked the previous day by the press time. The US 10-year Treasury bond yields rally to a fresh high since December 30, 2022, up five basis points to 3.896% by the press time.
Geopolitical headlines, Fed talks and US data are weighing on sentiment, despite a light calendar. This could be detrimental to the risk appetite, as investors remain cautious about higher rates from the US central bank. The S&P 500 Futures are expected to remain pressured near its weekly low, while the US 10-year Treasury bond yields could continue to rally to its fresh highs. The higher policy pivot from the US central bank could cause a shift in the market sentiment, as investors remain cautious about higher rates.
