![]() ![]() The Fed has already hiked its main rate to its highest level in more than two decades, a jolting shock after the rate began last year at virtually zero. High rates undercut inflation by slowing the overall economy and dragging on prices for stocks and other investments. But a reading that’s too hot could also mean upward pressure on inflation, which could push the Fed to get more aggressive about rates. ![]() Growth needs to be strong enough to keep a lid on worries about a possible recession. Several reports in the coming week could poke holes in the theory that inflation will keep coming down enough for the Federal Reserve to not only stop hiking interest rates, but to begin cutting them by early next year.īig names in the market, such as Rob Arnott at Research Affiliates, are warning not to be “overly hasty in popping the champagne corks.” Arnott sees the possibility of inflation rebounding again later this year, even though it’s recently cooled considerably.įed Chair Jerome Powell has pointed to Friday’s upcoming report on the overall U.S. To be sure, critics have been saying Wall Street’s seemingly growing consensus for a soft landing for the economy has come too quickly. Shares were mostly higher in Asia on Monday after Wall Street got back to climbing following more encouraging profit reports and the latest signal that inflation is loosening its chokehold on the economy. That’s its longest winning streak in nearly two years, and the index is at a 16-month high after rallying on hopes cooling inflation will mean the economy can avoid a long-predicted recession.Ī man walks past monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Monday, July 31, 2023. Wall Street closed out its latest winning month, with the S&P 500 adding 6.73 points, or 0.1%, to 4,588.96 to cap its fifth straight month of gains. Hong Kong’s Hang Seng was little changed, edging down less than 0.1% to 20,068.66, while the Shanghai Composite shed 0.1% to 3,286.34. South Korea’s Kospi jumped 1.3% to 2,667.03. Japan’s Nikkei 225 surged 0.7% in morning trading to 33,418.53. “With the RBA keen not to overdo the tightening, it seems unnecessary to hike today when in all likelihood the macro signals for hiking will look much stronger at the September meeting,” said Robert Carnell, Asia-Pacific regional head of research. Some forecasters are expecting a hike, but analysts at ING Economics said that wasn’t likely. Investors were also watching for the policy decision by the Reserve Bank of Australia. All Rights Reserved.TOKYO (AP) - Asian shares mostly rose Tuesday, boosted by market optimism set off by a Wall Street rally despite lingering worries about inflation and regional growth. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. ![]()
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