As Fears of Aggressive Rate Cuts Fade, Asia stocks Fall
22.07.2019, 07:29

As Fears of Aggressive Rate Cuts Fade, Asia stocks Fall

Federal Reserve (Fed) Chairman Jerome Powell has been hinting that interest rates will be cut in July due to economic risks and inflation pressures. Wall Street Journal commented on this at the end of last week by saying that the Fed is likely to cut rates by 25 bps this month and ‘may make further cuts in the future given global growth and trade uncertainties.

As worries for an aggressive rate cut have now become more settled, the Asian market reacted with a fall in Asia stock this morning, while crude oil prices rose due to increased tensions in the Middle East after Iran’s seizure of a British tanker.

According to Reuters, MSCI’s broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS was down 0.4 percent, Japan's Nikkei.N225 closed at 0.2 percent, the Shanghai Composite Index.SSEC was down by one percent and Hong Kong’s Hang Seng.HSI dropped by 0.9 percent.

Speaking about the week ahead, senior forex strategist at IG Securities said that stocks could go lower depend on any tweets that President Donald Trump creates about trade issues with China. “Stocks could decline if he continues to make challenging trade comments directed at China this week,” Ishikawa said.

While Asia stock fell, crude oil prices increased with Brent crude futures LCOc1 up by 1.55 percent at $63.44 per barrel, following an increase of about 0.9 percent on Friday. 

Disclaimer:

Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.

 

 

 

 

 

© 2000-2020. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location