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The U.S. central bank hiked rates by 50 basis points (bps) on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight had been won. The Fed's policy-setting committee projected it would continue raising rates to above 5% in 2023, a level not seen since a steep economic downturn in 2007. Money market participants currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% by May next year, before falling to around 4.4% by year-end. Wall Street's main indexes have staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December due to mixed economic data and worrying corporate forecasts. Tesla Inc (TSLA.O) fell 2.9% after CEO Elon Musk disclosed another $3.6 billion in stock sales, taking his total near $40 billion this year and frustrating investors as the company's shares wallow at two-year lows.

☆ TSX futures steady as oil prices recover, Fed worries cap gains
▼ + stars: | 2022-12-15 | by ( ) www.reuters.com time to read: +1 min

Dec 15 (Reuters) - Futures for Canada's resources-heavy main stock index rose on Thursday as oil prices recouped early losses, while a sharp drop in gold kept gains in check after hawkish Federal Reserve commentary. Futures on the S&P/TSX index were up 0.1% at 6:34 a.m. ET (1134 GMT), while their U.S. peers fell after the Fed on Wednesday raised interest rates as expected but said it would keep hiking them further. Fed Chair Jerome Powell on Wednesday said interest rate hikes would persist next year even as the U.S. economy faces the threat of a recession, sparking a selloff on Wall Street and also knocking down Canada shares (.GSPTSE). In a bright spot, oil prices steadied after early declines as the dollar firmed, while likely increases in interest rates by central banks also heightened demand concerns.

☆ Futures slide as hawkish Fed quashes policy pivot hopes
▼ + stars: | 2022-12-15 | by ( Sruthi Shankar | ) www.reuters.com time to read: +3 min

Investors currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% by May next year, before falling to around 4.4% by year-end. Both central banks are expected to hike borrowing costs by 50 bps. Shares of megacap companies, including Apple (AAPL.O), Amazon.com Inc (AMZN.O), Microsoft Corp (MSFT.O) and Nvidia Corp , fell between 1.1% and 2.1% in premarket trading. Trade Desk Inc (TTD.O) slipped 4.1% after Jefferies downgraded its rating for the adtech firm to "hold" from "buy". Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Savio D'Souza and Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Asian stocks sag with dollar as hawkish Fed spurs recession fears
▼ + stars: | 2022-12-15 | by ( Kevin Buckland | ) www.reuters.com time to read: +4 min

TOKYO, Dec 15 (Reuters) - Asian stocks sagged on Thursday, tracking declines on Wall Street, after the U.S. Federal Reserve projected higher interest rates for a longer period. U.S. Treasury yields remained depressed and the curve deeply inverted as traders continued to fret that tighter policy will trigger a recession. Japan's Nikkei (.N225) eased 0.17%, while South Korea's Kospi (.KS11) dropped 0.92% and Australia's stock benchmark (.AXJO) fell 0.4%. "The weakening in risk assets and the flattening of the curve suggest that recession fears may be the dominant driver of market price action." The IEA raised its 2023 oil demand growth estimate to 1.7 million bpd for a total of 101.6 million bpd.

☆ European markets head for negative open after hawkish Fed comments
▼ + stars: | 2022-12-15 | by ( Holly Ellyatt | ) www.cnbc.com time to read: +1 min

European stocks are heading for a lower open Thursday as global markets dip following the U.S. Federal Reserve's latest policy update. Major U.S. indexes and markets in the Asia-Pacific region reacted negatively after the Fed raised its benchmark interest rate to the highest level in 15 years and signaled it will maintain higher rates throughout 2023. Federal Reserve Chairman Jerome Powell said Wednesday that recent signs inflation might have peaked weren't enough for the central bank to ease off on interest rate increases. "It will take substantially more evidence to have confidence that inflation is on a sustained downward" path, Powell said during his post-meeting news conference. Thursday will also see monetary policy decisions from the Bank of England, European Central Bank and Swiss National Bank.

☆ Morning Bid: Still a ways to go?
▼ + stars: | 2022-12-15 | by ( ) www.reuters.com time to read: +5 min

For markets navigating the barrage of major central bank interest rate rises this week - there's a ways to go, much as Fed chief Jerome Powell insists about the tightening cycle. Central banks in the Philippines, Norway and Taiwan also raised rates by 50bp, 25bp and 12.5bp respectively. But the policy message all around is that more pain is coming unless there's further evidence of sky-high inflation rates returning to 2% targets. Peak Fed rates implied in futures markets on Thursday remain 20bp below that official Fed projection and year-end market pricing is some 70bp below it. The economy there lost more steam in November as factory output slowed and retail sales extended declines, both missing forecasts and clocking their worst readings in six months.

The Fed's policy-setting committee projected it would continue raising rates to above 5% in 2023, a level not seen since a steep economic downturn in 2007. Money market participants currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% in the first half, before falling to around 4.4% by the year end. Wall Street's main indexes have staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December on the back of mixed economic data and worrying corporate forecasts. Investors also digested economic data on Thursday that showed a steeper-than-expected decline in retail sales in November and the number of Americans filing for unemployment benefits falling last week, indicating a tight labor market. The S&P index recorded no new 52-week highs and four new lows, while the Nasdaq recorded 24 new highs and 120 new lows.

☆ Don't fight the Fed, make things and do stuff at a profit, and other Cramer lessons from 2022
▼ + stars: | 2022-12-15 | by ( Jim Cramer | ) www.cnbc.com time to read: +6 min

At one point Nvidia (NVDA), a very good company, was worth more than $820 billion, or more than 29 times sales. Last November, we made a determination that we were going to buy stocks of companies that 'make things and do stuff' at a profit. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

☆ Investors bolting from the market after hawkish Fed speech are being too hasty, Jim Cramer says
▼ + stars: | 2022-12-14 | by ( Krystal Hur | ) www.cnbc.com time to read: +1 min

CNBC's Jim Cramer on Wednesday said that investors exiting the market after Federal Reserve Chair Jerome Powell's hawkish speech on Wednesday are acting too rashly. Stocks fell Wednesday after the Fed raised interest rates by 50 basis points and forecasted hiking rates through next year. We'll get lower numbers — not necessarily a real slowdown, but lower numbers," Cramer said. But that doesn't mean the Fed is losing its fight, he reminded investors. "If Powell felt that things weren't going his way … what he would've done is hit us with another 75 basis point rate hike, not a 50.

☆ Critical inflation report could be the key to the week ahead, as the Fed meets
▼ + stars: | 2022-12-09 | by ( Patti Domm | In | ) www.cnbc.com time to read: +6 min

Inflation and a hawkish Fed "I think the data can influence his press conference and how hawkish he is," said NatWest Markets' John Briggs. "If you get a higher CPI report on the back of that, it could create some significant market instability ahead of the Fed meeting." Recession fears "If you're more worried about recession than inflation, that means you bring in more bond buyers than sellers," he said. Retail sales, industrial production, and the Philadelphia Fed manufacturing survey as well as the Empire State manufacturing survey are released Thursday. Import prices 2:00 p.m. Fed statement and projections 2:30 p.m. Fed Chairman Jerome Powell briefing Thursday Earnings: Adobe, Jabil 8:30 a.m.

☆ S&P 500 climbs to snap 5-day losing streak as investors assess recession risks
▼ + stars: | 2022-12-08 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +1 min

US stocks climbed on Thursday, with the S&P 500 snapping a five-day losing streak. Markets had been weighed earlier by fears the Fed will keep rates higher for longer amid resilient economic data. But on Thursday, the Labor Department reported that claims for unemployment benefits increased 4,000 to 230,000 last week. The Labor Department reported that claims for unemployment benefits increased 4,000 to 230,000 in the week ending December 3. That came after Monday's strong service-sector report and last week's hot jobs report left investors weighing the odds of the central bank keeping rates higher for longer.

☆ US stocks climb as the S&P 500 looks to snap its 5-day losing streak
▼ + stars: | 2022-12-08 | by ( Phil Rosen | ) www.businessinsider.com time to read: +1 min

US stocks ticked higher Thursday, following five consecutive losing sessions for the S&P 500. Investors are eyeing next week's Federal Reserve meeting, where policymakers are expected to make a half-point interest rate hike. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. On Thursday, the Labor Department reported that claims for unemployment benefits increased 4,000 to 230,000 in the week ending December 3. Traders are largely betting on a 50-basis-point hike at the FOMC meeting next week, according to CME's FedWatch tool.

☆ Dollar holds firm on hawkish Fed bets, Aussie tad higher after RBA
▼ + stars: | 2022-12-06 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

It had dipped to 104.1 for the first time since June 28 as traders continued to rein in bets of aggressive Fed tightening. "The dollar really kicked butt across the board," said Bart Wakabayashi, branch manager at State Street in Tokyo. Investors had been on watch for signs of a pause in tightening after inflation unexpectedly cooled last month. "And with the RBA expecting inflation to continue higher and household spending remaining strong as ever, then the RBA may well hike by another 25 bps in February and March before reassessing." In recent days though, RBA policy has taken a back seat to optimism about an easing of strangling COVID-19 restrictions in China, a top trading partner.

It had dipped to 104.1 for the first time since June 28 as traders continued to rein in bets of aggressive Fed tightening. "The dollar really kicked butt across the board," said Bart Wakabayashi, branch manager at State Street in Tokyo. The Aussie dollar rose 0.21% to $0.6713, clawing back some of a 1.4% overnight tumble. In recent days though, RBA policy has taken a back seat to optimism about an easing of strangling COVID-19 restrictions in China, a top trading partner. "We expect the RBA to change its forward guidance in a subtle but significant way from 'expects to increase interest rates further' to 'likely to increase interest rates further' or 'willing to increase interest rates further,' (which) would indicate the RBA considers it is at or at least near the end of its tightening cycle," pushing the Aussie lower.

☆ Dow falls more than 300 points as US stocks extend losses on interest rate fears
▼ + stars: | 2022-12-06 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

US stocks finished lower on Tuesday as investors cast doubt on the Fed easing rate hikes. A strong November jobs report and solid GDP data suggests a resilient economy may keep the Fed hiking rates for longer. The S&P 500 extended its two-day decline to more than 3% as its 200-day moving average remains a big resistance level. The Fed is largely expected to hike interest rates by 50 basis points at its FOMC meeting next week, a step down from its four straight 75-basis-point interest rate hikes. Last week's strong November jobs report and continued resilience in quarterly GDP data shows that the economy is holding up well despite the Fed's near-400 basis points of interest rate hikes made so far this year.

Data showed U.S. services industry activity unexpectedly picked up in November, with employment rebounding, offering more evidence of underlying momentum in the economy. "Right now it's more of an issue of watching the Fed and they are going to need to tighten and longer than needed." Investors see an 89% chance that the U.S. central bank will increase interest rates by 50 basis points next week, with the rates peaking in May 2023. All major Wall Street indexes notched a second straight week of gains last week, with the S&P 500 rising 1.13%, the Dow gaining 0.24% and the Nasdaq climbing 2.1%. The S&P index recorded four new 52-week highs and one new low, while the Nasdaq recorded 54 new highs and 39 new lows.

☆ Wall Street experts are warning that stocks are in for more trouble as a robust November jobs report is crushing investor hopes of a dovish Fed
▼ + stars: | 2022-12-03 | by ( William Edwards | ) www.businessinsider.com time to read: +6 min

Stocks fell on Friday after the Bureau of Labor Statistics announced a robust November jobs report. But with the economy resilient, the Fed could continue to cause more pain for stocks going forward. November's jobs report, however, puts a pin the hopes of those anticipating easier policy sooner. He added: "Chairman Powell's speech earlier in the week was interpreted with a dovish lens, but that spin is likely to be reassessed based on the jobs report. Even before Friday's jobs report, some Wall Street strategists and money managers have been warning of further trouble ahead.

☆ Powell’s inflation remarks are a ‘green light’ to stay in stocks, Jim Cramer says
▼ + stars: | 2022-12-01 | by ( Krystal Hur | ) www.cnbc.com time to read: +1 min

CNBC's Jim Cramer on Thursday said Federal Reserve Chair Jerome Powell's inflation remarks the day before confirmed that inventors shouldn't exit the market over recession fears. To me, that's a green light to stay in stocks." Nevertheless, reading the "Fed tea leaves" will continue to be critical for determining which areas of the economy will be crushed by the central bank's tightening and which will remain intact, according to Cramer. He called on Powell to crush speculative stocks that became inflated during the height of the pandemic and to discourage investing in crypto. "It is touch and go until we get some indication as to whether he'll be willing to declare victory after he crushes speculation, hoarding, profiteering and inefficiency without ruining the rest of the economy," Cramer said.

☆ Dollar slips from one-week high on China hopes as Powell speech looms
▼ + stars: | 2022-11-30 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

The risk-sensitive New Zealand and Aussie dollars rose, while the offshore Chinese yuan hovered near a one-week peak. "But there's a back and forth between dollar selling and dollar strength, because earlier in the week, all we could talk about was hawkish Fedspeak," he added. The euro ticked up 0.11% to $1.0339, lifting from a one-week low reached earlier on Wednesday at $1.0319. The New Zealand dollar strengthened 0.29% to $0.6218 while the Aussie adding 0.1% to $0.66935. "Expectations for an end to China's zero‑covid policy in coming months, combined with more targeted restrictions in the meantime, can provide support to CNH, AUD and NZD."

☆ Nasdaq soars 4% after Jerome Powell indicates the Fed is on track to slow rate hikes in December
▼ + stars: | 2022-11-30 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

US stocks soared on Wednesday after Fed Chairman Jerome Powell said slower interest rate hikes are likely. Powell all but confirmed a 50 basis-point rate hike in December, dialing back from the four consecutive 75 basis-point hikes. "It is entirely possible the December hike of 50 basis points could be the last hike," Fundstrat's Tom Lee said. In his remarks, Powell said there are signs inflation is beginning to finally ease, and that it makes sense for the Fed to slow down its interest rate hikes as soon as December. "It is entirely possible the December hike of 50 basis points could be the last hike," Lee told clients in a Wednesday note.

☆ Powerhouse US dollar is about to see its biggest monthly loss in more than a decade on expectations for a less hawkish Fed
▼ + stars: | 2022-11-30 | by ( Phil Rosen | ) www.businessinsider.com time to read: +2 min

The US dollar has soared this year but is on pace for its largest monthly loss since 2010. In November, it has fallen 4.2% against a basket of currencies, according to the WSJ Dollar Index. Still, the greenback remains up more than 10% on the year after hawkish Fed policy powered a steep climb. As November winds down, the greenback has shed 4.2% in the month against a basket of other currencies, according to the WSJ Dollar Index. The Fed is widely expected to raise rates by 50 basis points next month, after four consecutive hikes of 75 basis points.

The euro rose ahead of inflation data due on Wednesday. The Aussie , often used as a liquid proxy for the yuan, rose 1.2% to $0.6734. EURO ZONE INFLATIONThe euro was up 0.4% at $1.0380, not far from a five-month peak of $1.0497 hit on Monday. Flash euro zone inflation figures for November are due on Wednesday, with economists polled by Reuters expecting inflation to come in at 10.4% year-on-year. St. Louis Fed President James Bullard said the Fed needed to raise interest rates quite a bit further, while New York Fed President John Williams and Richmond Fed President Thomas Barkin echoed similar views.

☆ Dollar rebounds on Fed expectations, Aussie drops
▼ + stars: | 2022-11-29 | by ( Karen Brettell | ) www.reuters.com time to read: +3 min

[1/2] U.S. dollar banknotes are seen in this illustration taken July 17, 2022. The dollar index has fallen to 106.65 from a 20-year high of 114.78 on Sept. 28 on expectations that its rally may have been over stretched and as the Fed looks to slow its pace of rate increases. The greenback was also likely supported after the dollar index reached the 200-day moving average at 105.369. The dollar had dipped earlier on Monday despite other safe-haven currencies the Japanese yen and the Swiss franc gaining on concerns about China. The risk sensitive Aussie dollar , which is strongly tied to Chinese growth, was the worst performing major currency, falling 1.61% to $0.6649.

☆ Recent weakness in the strong dollar is a welcome development for multinational Club stocks
▼ + stars: | 2022-11-29 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +5 min

The dollar has run into a brick wall in November, a potentially hopeful sign for multinational Club stocks that have seen their earnings dented because of the U.S. currency's strength this year. The U.S. dollar index (DXY) has declined more than 5% to around the 107 level since settling at nearly 113 on Nov. 3. However, the dollar index, which measures against six other currencies including the Japanese yen and the euro, is still up more than 10% compared with this time in 2021. Even though currency considerations don't factor into our long-term investment theses , the strong dollar has been a thorn in the side of many Club stocks in 2022. But it's important to understand near-term dynamics because we've seen how the strong U.S. dollar has pinched profits at Club stocks like P & G, Apple (AAPL), Salesforce (CRM) and more.

☆ Dollar rises, yuan slumps as China's COVID unrest spooks markets
▼ + stars: | 2022-11-28 | by ( Rae Wee | Ashitha Shivaprasad | ) www.reuters.com time to read: +3 min

[1/2] Banknotes of Chinese yuan and U.S. dollar are seen in this illustration picture taken September 29, 2022. The offshore yuan fell to an over two-week low in Asian trading, and was last roughly 0.4% lower at 7.2242 per dollar. The Australian dollar , often used as a liquid proxy for the yuan, slid more than 1% to $0.6681. China's stringent COVID restrictions have taken a heavy toll on its economy, and authorities have implemented various measures to revive growth. Against a basket of currencies, the U.S. dollar index rose 0.07% to 106.41, edging away from its recent three-month low of 105.30.

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