US stocks fell on Tuesday and Treasuries were under pressure as investors awaited a closely watched interest rate decision by the Federal Reserve.
Wall Street’s S&P 500 gauge fell 0.8% by midnight in New York, while the technology-focused Nasdaq Composite fell 0.3%. In Europe, the FTSE 100 in London fell 0.6% while the regional Stox 600 gauge closed 1.1% lower than him. That’s because traders are back at their desks following a British holiday to commemorate Queen Elizabeth’s state funeral.
Central banks are poised this week to discuss how far they can raise their borrowing costs to limit rapid inflation in the face of a prolonged global economic downturn.
Ford’s shares rose 10 on Tuesday after the automaker announced on Monday third-quarter inflation-related supplier costs to be about $1 billion higher than originally expected, reflecting the challenges weighing on corporate America. fell by more than 10%.
The announcement comes days after a profit warning from FedEx, seen as a vanguard of global economic growth, led the group’s shares to their share price. Largest Daily Decrease on Record.
Yields on US government debt rose Tuesday after reaching the highest level in more than a decade on Monday. This comes as his two-day meeting of the Fed kicks off and rate setters are widely expected to make his third straight rate hike of 0.75%.
The 10-year US Treasury yield rose 0.08 points to 3.57%, crossing the 3.5% threshold for the first time since April 2011 in previous trading. It held his 15-year high of 3.96%. When bond prices fall, bond yields rise.
Selling pressure was more pronounced in the euro zone bond market, with 10-year German bund yields up 0.14 points to 1.93%. His 10-year gold leaf yield in the UK rose 0.16 points to 3.3%, while the 2-year gold leaf yield rose 0.19 points to 3.29%.
In currencies, the dollar gained 0.3% against a basket of six other peers. “There appears to be no reason for the Fed to soften the hawkishness exhibited at the recent Jackson Hole symposium,” said an ING analyst. [0.75 percentage point] “Hawk rate hikes” should keep the dollar near its highs this year.”
The pound fell 0.4% to $1.141 against the dollar on Friday after falling to its lowest level since 1985. The pound has fallen about 16% so far this year, hurting business confidence as the UK economy is on the brink of recession. Bank of England forecasts could last until the end of 2023.
Markets are pricing in the possibility of the BoE raising interest rates by 0.75ppts on Thursday, following August’s 0.5ppt gain. Faster action on interest rates by other central banks is increasing pressure on the BoE to accelerate the pace of monetary tightening to fight inflation and support the pound.
Sweden’s central bank raised its policy rate by one point to 1.75% on Tuesday. This is a move that beats analyst expectations and is the biggest rise since the early 1990s.
The central banks of Japan, Norway, Brazil, South Africa, the Philippines, Indonesia, Taiwan, Turkey and Switzerland are also due to release their latest decisions on interest rates this week.
https://www.ft.com/content/7d1be1d4-8dd1-4cbf-8d74-756812c83987 US stocks pull back ahead of closely watched Fed rate decision