By Geoffrey Smith
Investing.com – It’s Fed Day and President Jerome Powell will have to explain his colleagues’ decisions immediately after what is expected to be weak retail sales in August. Snowflake’s strong IPO keeps the stock market mood afloat. Facebook (NASDAQ 🙂 gets a double whammy from the FTC and Kim Kardashian. Yoshihide Suga is Japan’s new prime minister, but he is expected to continue most of the old policy. The EU is getting even greener at a price and oil prices are returning after a sharp drop in US inventories is catching the market on the wrong foot. Here̵
The Fed meeting ends with a slowdown in retail sales in focus
The Federal Reserve concludes its regular two-day political meeting with the announcement of its aftermath at 6 p.m. 14 ET (1800 GMT) and President Jerome Powell’s halftime, as usual.
No policy changes are expected, but the Fed will update its economic forecasts, including an initial forecast for 2023. Powell is also likely to be pressured on how he intends to maintain a recovery in inflation amid high unemployment and depressed spending. .
Before Powell’s press conference, the United States publishes its August issues, the first since the improved unemployment benefit scheme expired without compensation in late July. Sales growth is expected to slow to 1.0% during the month from 1.2% in July.
2. The yen hits a two-month high as Suga takes over as prime minister
The rose rose to its highest level since July, when Yoshihide Suga was confirmed by Japan’s new prime minister.
Kl. 6:30 ET the dollar fell 0.4% at 105.05 yen.
Suga has promised economic reform, but as a 71-year-old who served for a long time under his predecessor Shinzo Abe, most analysts expect a continuation of most of Abe’s policies.
The strength of the yen is partly tied to the general recovery in the Asia-Pacific economy, which is run by China. Hit a new 16-month high overnight while and also strengthened. The rise of the yen is also due to the general weakness of the dollar since Fed Chairman Jerome Powell announced that the Fed would adopt a higher tolerance of inflation in the future, analysts say.
Stocks set to expand gains as Snowflake keeps the mood buoyant; double-whammy for Facebook
US stock markets show no sign of letting the Fed meeting get in the way of a strong rebound after last week’s volatility. They are set to open up for a third day in a row, with all three major index futures moving roughly in line following strong IPO pricing for cloud software firm Snowflake.
Kl. At 06:30 the contract increased by 136 points or 0.5%, while the contract increased by 0.6%.
That despite some notable losses on individual stocks: The Facebook (NASDAQ 🙂 stock was up 1.4% after a report that the Federal Trade Commission is preparing a cartel investigation, which in turn followed the news of a mass boycott of its Instagram platform by Kim Kardashian. and other high-profile celebrities and influencers.
The Boeing (NYSE 🙂 holdings were indicated 0.1% after a judgmental House report in the 737 MAX sharply criticized it for cutting corners to get the aircraft certified.
4. Europe is tightening the screws on fossil fuels
The European Union’s top bureaucrat revealed plans to cut carbon dioxide emissions further and faster than planned in a keynote speech on the “state of the Union”, which set out how Europe should recover from the pandemic.
The EU is now aiming for a 55% reduction in CO2 emissions from baseline in 1990 by 2030 rather than the 40% cut previously targeted. This means a more aggressive timetable for phasing out fossil fuels from electricity and transport value chains and almost certainly higher prices in Europe’s trade program.
Stricter environmental regulations are also a likely precursor to attempts to impose a longer-term carbon tax on imports, a way of tying market access for trading partners to their own environmental performance.
5. Oil prices return to US inventory
Oil prices rose sharply after a surprising and sharp drop in U.S. inventories, as reported by the American Petroleum Institute, caught the market wrong.
6:40 ET increased futures by 2.2% to $ 39.13 per share. Barrel, while the international benchmark contract rose 2.0% to $ 41.34.
The estimated U.S. crude stocks fell by 9.5 million barrels last week, confusing expectations of an increase of 2.0 million barrels. If it is confirmed at 10:30 ONE of it, it may banish some of the worst fears of a staggering recovery in global fuel demand.