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☆ Yen flounders, dollar drifts ahead of c.bank bonanza
▼ + stars: | 2023-09-19 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. The yen fell 0.1% to 147.76 per dollar and was kept pinned near last week's 10-month low of 147.95 per dollar. The euro meanwhile gave up some of its gains from the previous session and was last 0.12% lower at $1.0678. It had risen alongside euro zone government bond yields on Monday, following hawkish comments from European Central Bank (ECB) policymakers that further rate increases were on the cards. In other currencies, sterling edged 0.04% higher to $1.2390, ahead of an interest rate decision from the Bank of England (BoE) also due this week.

Persons: Dado Ruvic, Kazuo Ueda, Rodrigo Catril, Erik Weisman, NAB's Catril, BoE, Rae Wee, Lincoln Organizations: REUTERS, Rights, Federal, Wednesday, Bank of Japan's, National Australia Bank, NAB, Reserve Bank of Australia's, U.S, New Zealand, Fed, MFS Investment Management, European Central Bank, ECB, Reuters, Bank of England, Thomson Locations: Rights SINGAPORE, Asia

☆ Japan's central bank will keep stimulus for now as risks grow
▼ + stars: | 2023-09-19 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

A man walks in front of the headquarters of Bank of Japan in Tokyo, Japan, January 18, 2023. Many central bank policymakers prefer to hold fire until there is more clarity on whether Japan's fragile economy can weather the hit from slowing U.S. and Chinese demand, they say. "Uncertainty over the global outlook is very high, posing a huge risk to Japan's economy," one of the sources said. At the two-day meeting ending on Friday, the BOJ is widely expected to maintain its short-term interest rate target of -0.1% and that for the 10-year bond yield around 0%. It is also seen leaving unchanged guidance pledging to keep intact its bond yield control policy until inflation stably hits the bank's 2% target, the sources said.

Persons: Issei Kato, Ueda, Kazuo Ueda, Haruhiko, Leika Kihara, Sam Holmes Organizations: Bank of Japan, REUTERS, Bank of, Thomson Locations: Tokyo, Japan, TOKYO, Bank of Japan, United States

☆ The head quant strategist at a $194 billion firm shares 4 trades he sees delivering at least 6% returns over each of the next 5 years as a recession gets ready to hit the US economy next year
▼ + stars: | 2023-09-19 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Next, Swinkels likes developed market equities, which include stocks in countries like France, Germany, the UK, Australia, Japan, and more. The iShares MSCI EAFE ETF (EFA) offers exposure to developed market stocks outside of the US and Canada. Exchange-traded funds like the Schwab Emerging Markets Equity ETF (SCHE) or the Vanguard FTSE Emerging Markets ETF (VWO) are one way to invest in emerging market stocks. "The CAPE ratio of global real estate is currently 13.3, well below its average of 19.4 since 2000," Swinkels said. One way to invest in real estate without buying properties directly is through real-estate investment trusts, also known as REITs.

Persons: Laurens Swinkels, Peter van der, Swinkels, we've Organizations: Federal, iShares, Yield Corp, Exchange, Schwab, Equity, Vanguard FTSE, Markets, Simon Property Group Locations: France, Germany, Australia, Japan, Canada, China, Brazil, India, Saudi Arabia

A woman walks past the headquarters of the People's Bank of China (PBOC), the central bank, in Beijing, China September 28, 2018. REUTERS/Jason Lee/File Photo Acquire Licensing RightsSept 19 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. China is expected to keep benchmark lending rates unchanged on Wednesday, grabbing the spotlight in Asia as the relentless rise in oil prices toward $100 a barrel seeps deeper into investor sentiment globally. Rates futures markets are pricing in a 30% likelihood of a quarter point hike in November or 40% chance it will be in December. China's central bank is expected to stand pat on rates as fresh signs of economic stabilization and a weakening yuan constrain put the brakes on further monetary easing efforts, at least for now.

Persons: Jason Lee, Jamie McGeever, Jerome Powell, Josie Kao Organizations: People's Bank of China, REUTERS, Reuters, 78th United Nations General Assembly, Investors, United Nations, Thomson Locations: Beijing, China, Asia, Japan, Taiwan, South Korea, New, New York

Pump jacks operate at sunset in an oil field in Midland, Texas U.S. August 22, 2018. Earlier, it hit a session peak of $95.96 a barrel, their highest since November. U.S. West Texas Intermediate crude futures dropped 28 cents to $91.20 after earlier reaching $93.74 a barrel, also the highest since November. After Brent topped $95 a barrel on Tuesday, investment bank UBS said in a note it started taking profits. Industry data on Tuesday showed U.S. crude oil stockpiles fell last week by about 5.25 million barrels, according to market sources citing American Petroleum Institute figures on Tuesday.

Persons: Nick Oxford, Brent, Analysts, Amin Nasser, Prince Abdulaziz bin Salman, Stephanie Kelly, Andrew Hayley, Paul Carsten, Kirsten Donovan, Jason Neely, David Goodman, David Gregorio, Jan Harvey Organizations: Midland , Texas U.S, REUTERS, Brent, . West Texas, UBS, Reuters, U.S . Energy, Administration, American Petroleum Institute, Nasdaq, U.S, Thomson Locations: Midland , Texas, U.S, Saudi Arabia, Russia, Saudi Aramco, Saudi, OPEC, Britain, Japan, Sweden, Switzerland, Norway, U.S . Federal, New York, Beijing

☆ New economic rules shatter US bonds’ crystal ball
▼ + stars: | 2023-09-19 | by ( Ben Winck | ) www.reuters.com time to read: +8 min

Yield curve “inversions” belong to the latter group. At first sight, they are right: Yield curve inversions have been a consistent predictor of future downturns. Yield curve inversions take place when the yield on short-dated government debt climbs higher than that on longer-term bonds. Lower long-dated bond yields are seen as a sign that investors predict lower rates due to an economic downturn. As such, yield curve inversions have become a popular forward indicator of economic recessions.

Persons: Treasuries, There’s, Eugene F, Fama, Kenneth R, joblessness, Morgan Stanley, Ellen Zentner, Francesco Guerrera, Sharon Lam, Aditya Sriwatsav, Oliver Taslic Organizations: Reuters, San Francisco Federal Reserve, Fed, New York Fed, Morgan Stanley U.S, Treasury, European Central Bank, Thomson Locations: United States, U.S, Covid

☆ America is stuck in a greased-pig economy
▼ + stars: | 2023-09-19 | by ( Linette Lopez | ) www.businessinsider.com time to read: +10 min

At the same time that prices were cooling off, the rest of the economy seemed to be holding up. And consumers were so intent on spending money to have a good time that cities let Beyoncé dictate public transit. In this greased-pig economy, stability depends on how confident investors and policymakers are that they're close to catching the pig. Moving in a messIn the messy economy the pandemic left us, it's not easy to pinpoint exactly why inflation has been so stubborn. CPI inflation peaked at 9% in June 2022 and has been going down steadily since.

Persons: it's, Jerome Powell, Mike Konczal, Konczal, we've, Price, proclivity, that's, Taylor Swift, we'd, Charles Evans, Christine Lagarde, Morgan, Jamie Dimon, Roosevelt, —, you've, Justin Simon, Jasper Capital, Linette Lopez Organizations: Consumers, Federal, Roosevelt Institute, Fed, Chicago Fed, European Central Bank, Census Locations: American, America, Jasper

☆ The Greased-Pig Economy: Higher Inflation, Stock Market Crash Possible
▼ + stars: | 2023-09-19 | by ( Linette Lopez | ) www.businessinsider.com time to read: +10 min

At the same time that prices were cooling off, the rest of the economy seemed to be holding up. In this greased-pig economy, stability depends on how confident investors and policymakers are that they're close to catching the pig. Moving in a messIn the messy economy the pandemic left us, it's not easy to pinpoint exactly why inflation has been so stubborn. CPI inflation peaked at 9% in June 2022 and has been going down steadily since. But with inflation still above the Fed's goal, it's clear we need to recalibrate some on the demand side still.

☆ Euro gains; yen flounders ahead of c.bank bonanza
▼ + stars: | 2023-09-19 | by ( ) www.cnbc.com time to read: +3 min

In this photo illustration, banknotes of Euro, Japanese Yen, Chinese Yuan and US dollar bill are placed under one-ounce silver bullion coins arranged on February 20, 2021 in Katwijk, Netherlands. The euro clung to gains on Tuesday following hawkish comments from European Central Bank, or ECB, policymakers, while the yen languished near a 10-month low ahead of a key rate decision from the Bank of Japan, or BOJ, later in the week. In Asia, the yen slipped marginally to 147.64 per dollar and was kept pinned near last week's 10-month low of 147.95 per dollar. Elsewhere, the U.S. dollar edged broadly lower, though strayed not too far from a six-month peak hit against its major peers last week ahead of the Fed's interest rate decision on Wednesday. Sterling edged 0.04% higher to $1.2390, ahead of an interest rate decision from the Bank of England, or BoE, also due this week.

Persons: Yuan, Rodrigo Catril, Kazuo Ueda, Erik Weisman, BoE Organizations: European Central Bank, Bank of Japan, Federal Reserve, ECB, National Australia Bank, Reuters, U.S, New Zealand, Fed, MFS Investment Management, Bank of England Locations: Katwijk , Netherlands, Asia

Chevron Chief Executive Mike Wirth also said he thinks oil will cross $100 per barrel in a Bloomberg News interview. Saudi Arabia and Russia this month extended a combined 1.3 million barrels per day (bpd) of supply cuts to the end of the year. Saudi Arabia's energy minister, Prince Abdulaziz bin Salman on Monday defended OPEC+ cuts to oil market supply, saying international energy markets need light-handed regulation to limit volatility. China, considered the engine of oil demand growth, is a key risk because of its sluggish post-pandemic economic recovery, though its oil imports have remained robust. "The high-for-longer mantra would ultimately have a negative impact on economic growth and would affect oil demand."

Persons: Tatiana Meel, Brent, WTI, Fiona Cincotta, Mike Wirth, Prince Abdulaziz bin Salman, Callum Macpherson, Tamas Varga, PVM's Varga, Arathy Somasekhar, Natalie Grover, Florence Tan, Sudarshan, David Goodman, Timothy Gardner Organizations: REUTERS, Rights, Brent, U.S, West Texas, Citi, Monday, Chevron, Bloomberg, ANZ, XM, U.S . Federal, Thomson Locations: Nakhodka, Russia, Saudi Arabia, Ukraine, China, Saudi, Investec, Europe, Houston, London, Singapore

The benchmark 10-year Treasury yield hit 4.399% overnight in Asia, its highest rate since early November 2007, and the two-year yield rose further above 5%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) shed 0.27%, while the pan-European STOXX 600 index (.STOXX) lost 1.05%, hit by lowered growth outlooks. CENTRAL BANKSGlobal central banks take stage, with five of those overseeing the 10 most-heavily traded currencies holding rate-setting meetings this week. A swathe of emerging market central banks including Turkey and South Africa will also meet. The Swedish crown sank to a record low against the euro on Monday, days before the Riksbank is expected to raise interest rates again.

Persons: Brendan McDermid, BOE, Brent, Marc Chandler, Chandler, Saira Malik, France's, Stocks, Xi, Kazuo Ueda, Herbert Lash, Nell Mackenzie, Dhara, Stella Qiu, Philippa Fletcher, Alexander Smith, Christina Fincher Organizations: New York Stock Exchange, REUTERS, Treasury, Global, Federal, United Auto Workers, Detroit Three, Bannockburn Global, U.S, Societe Generale, Dow Jones, Nasdaq, China Evergrande, HK, CENTRAL, Bank of England, Bank of Japan, European Central Bank, Thomson Locations: New York City, U.S, China, Bannockburn, New York, Asia, Turkey, South Africa, Swedish, London, Sydney

REUTERS/Lee Jae-Won/File Photo Acquire Licensing RightsLONDON/SINGAPORE, Sept 18 (Reuters) - The U.S. dollar hovered near a six-month high on Monday as traders looked ahead to interest rate decisions this week from the Federal Reserve, the Bank of England and the Bank of Japan. the yen was up a similar amount at 147.69 to the dollar, with traders out for a Japanese public holiday. Traders were looking towards central bank decisions later in the week which could shake up the currency market. Investors expect the Federal Reserve to keep interest rates on hold in the 5.25% to 5.5% range on Wednesday. The European Central Bank raised interest rates to 4% last week, but said this hike could be its last.

Persons: Lee Jae, Alvin Tan, RBC's Tan, Kazuo Ueda, Ueda's, Carol Kong, Ueda, Sterling, BoE, Harry Robertson, Vidya Ranganathan, Lincoln, Bernadette Baum, Alexander Smith Organizations: REUTERS, U.S, Federal Reserve, Bank of England, Bank of Japan, Asia FX, RBC Capital Markets, Traders, Investors, Bank of, Commonwealth Bank of Australia, European Central Bank, Thomson Locations: Seoul, SINGAPORE, U.S, Asia, Europe, China, Bank of England, Ukraine, London, Singapore

China property woes, geopolitical tensions and ongoing strikes also stoked worries about global growth. CENTRAL BANKSGlobal central banks take centre stage, with five of those overseeing the 10 most heavily traded currencies holding rate-setting meetings this week. A swathe of emerging market central banks such as Turkey and South Africa will also meet. In currency markets, the dollar drifted lower with the dollar index last down a touch at 105.24 but within sight of recent six-month highs. The euro gained about 0.1% to $1.0663, after slumping to a 3-1/2 month low of $1.0632 last week as the European Central Bank signalled its rate hikes could be over.

Persons: BOE, BOJ, France's, Taiwan's TSMC, Xi, James Rossiter, Rossiter, Marc Chandler, Goldman Sachs, Kazuo Ueda, Nell Mackenzie, Stella Qiu, Dhara, Philippa Fletcher, Alexander Smith Organizations: REUTERS, Staff, Societe Generale, China Evergrande, HK, Technology, Reuters, TD Securities, Japan's Nikkei, Brent, . West Texas, Federal Reserve, Bannockburn Global, CENTRAL, Global, Fed, Bank of England, Bank of Japan, Treasury, European Central Bank, Thomson Locations: Frankfurt, Germany, China, United States, Japan, Scandinavia, Switzerland, Britain, Asia, U.S, London, Bannockburn, Turkey, South Africa, Europe, SYDNEY

☆ Oil prices continue to rally on tight supply
▼ + stars: | 2023-09-18 | by ( Natalie Grover | ) www.reuters.com time to read: +2 min

Oil tankers sail along Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. China, considered the engine of oil demand growth, remains possibly the biggest risk because of its sluggish post-pandemic economic recovery. "Lack of protracted progress, nonetheless, will be viewed as a major setback on the demand side," said Tamas Varga of oil broker PVM. "The high-for-longer mantra would ultimately have a negative impact on economic growth and would affect oil demand." "The question is, will the Saudis continue to maintain the deficit given the risk that higher prices must surely, at some point, stimulate US shale (oil output)," Investec analyst Callum Macpherson said.

Persons: Tatiana Meel, Brent, WTI, Tamas Varga, PVM's Varga, Callum Macpherson, Natalie Grover, Florence Tan, Sudarshan, David Goodman Organizations: REUTERS, Brent, West Texas, XM, U.S . Federal Reserve, Thomson Locations: Nakhodka, Russia, Saudi Arabia, Ukraine, Europe, China, London, Singapore

SINGAPORE, Sept 18 (Reuters) - Oil prices rose for a third straight session on Monday, buoyed by forecasts of a widening supply deficit in the fourth quarter after Saudi Arabia and Russia extended cuts and by optimism about a recovery in demand in China. Traders will be watching decisions and commentary by central banks, including the U.S. Federal Reserve, this week on interest rate policies, as well as key economic data out of China. Saudi Arabia and Russia extended supply cuts to the end of the year as part of the OPEC+ group's plans. Global oil demand growth is on track to hit 2.1 million bpd, ANZ said, in line with forecasts from the International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC). Reporting by Florence Tan and Sudarshan Varadhan; Editing by Stephen Coates and Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

Persons: Tina Teng, Brent, WTI, Edward Moya, Florence Tan, Sudarshan, Stephen Coates, Sonali Paul Organizations: Brent, West Texas, CMC, Traders, U.S . Federal Reserve, Saudi, ANZ, OANDA, International Energy Agency, Organization of, Petroleum, Thomson Locations: SINGAPORE, Saudi Arabia, Russia, China, OPEC, Ukraine, Russian

☆ Take Five: A central bank bonanza
▼ + stars: | 2023-09-18 | by ( ) www.reuters.com time to read: +5 min

Now it's the turn of the world's most important central bank. Also on Thursday, the Bank of England is tipped to hike for the 15th consecutive meeting, taking benchmark borrowing costs to 5.5%. Norway's central bank is also expected to nudge benchmark borrowing costs higher, following a 25 bps rise in August to 4%. Reuters Graphics4/ DIVERGING TRAJECTORIESThe push and pull factors on central banks are nowhere more visible than in emerging markets. But for Turkey's central bank, convening on Thursday, the only way is up.

Persons: Lewis Krauskopf, Kevin Buckland, Amanda Cooper, Naomi Rovnick, Karin Strohecker, Jerome Powell, Kazuo Ueda, Ueda, hypothesise, Tayyip Erdogan, Mark Heinrich Our Organizations: U.S . Federal, ECB, Bank of England, Reuters, Bank of Japan, Japan's, of Finance, Thomson Locations: Central, Lewis, New York, Tokyo, London, United States, Europe, Scandinavia, Switzerland, Norway's, Latin America, South Africa, Egypt, Taiwan

☆ Asian shares drop as investors brace for central bank-packed week
▼ + stars: | 2023-09-18 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

U.S. West Texas Intermediate crude futures gained 0.8% to $91.52, their highest level since November, while Brent crude futures rose 0.7% to $94.55 per barrel. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.7%. This week, global central banks will take centre stage, with five of those overseeing the 10 most heavily traded currencies holding rate-setting meetings. Last Friday, Wall Street ended sharply lower as U.S. industrial labour action weighed on auto shares. The euro gained 0.1% to $1.0667, after slumping to a 3-1/2 month low of $1.0632 last week as the European Central Bank signalled its rate hikes could be over.

Persons: BOE, BOJ, Taiwan's TSMC, Hong, Tommy Xie, Chris Weston, Weston, Kazuo Ueda, Cash Treasuries, Stella Qiu, Shri Navaratnam, Edwina Gibbs Organizations: Federal Reserve, Bank of Japan, Nasdaq, . West Texas, Brent, Japan's Nikkei, Technology, Reuters, Trust, Greater, Greater China Research, OCBC Bank, China Evergrande, Fed, U.S ., Bank of England, Treasury, Amazon, European Central Bank, Thomson Locations: China, SYDNEY, Europe, Asia, Pacific, Japan, Zhongrong, Greater China, HK, Pepperstone, Tokyo

☆ Japan's yen takes the spotlight in central bank week
▼ + stars: | 2023-09-18 | by ( Vidya Ranganathan | ) www.reuters.com time to read: +4 min

The Bank of Japan's policy meeting on Friday is the highlight of the week in Asia, after Governor Kazuo Ueda stoked speculation of an imminent move away from ultra-loose policy. The yen was flat versus the greenback between 147.63 and 147.88 per dollar, with markets in Japan closed for a national holiday. "Anticipation of new BOJ rate guidance could support the yen into the meeting date, with the FOMC meeting also contributing to volatility this week," Chang said. The European Central Bank raised interest rates to 4% last week but said this hike could be its last. Futures are pricing in almost no chance that the Fed raises interest rates at the end of its two-day meeting next Wednesday.

Persons: Yen, Dado Ruvic, Kazuo Ueda, That's, Carol Kong, Kong, Ueda, Wei, Liang Chang, Chang, Sterling, Lincoln Organizations: REUTERS, Rights, U.S, The, of, U.S . Federal, Bank of, Commonwealth Bank of Australia, DBS Bank, European Central Bank, Japan, . U.S, Treasury, The Bank of England, Brent, Saudi, Global, Thomson Locations: Rights SINGAPORE, Asia, Bank of England, Japan, ., U.S, Ukraine

SINGAPORE, Sept 18 (Reuters) - Oil prices rose for a third straight session on Monday, buoyed by forecasts of a widening supply deficit in the fourth quarter after Saudi Arabia and Russia extended cuts and on optimism of a demand recovery in China, the world's top crude importer. Brent crude futures rose 39 cents, or 0.4%, to $94.32 a barrel by 0253 GMT while U.S. West Texas Intermediate crude futures were at $91.30 a barrel, up 53 cents, or 0.6%. Traders will be watching decisions and commentary by central banks, including the U.S. Federal Reserve, this week on interest rate policies, and key economic data out of China. Global oil demand growth is on track to hit 2.1 million bpd, ANZ said, in line with forecasts from the International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC). Reporting by Florence Tan and Sudarshan Varadhan; Editing by Stephen Coates and Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

☆ Asian shares stumble as investors brace for central bank packed week
▼ + stars: | 2023-09-18 | by ( Stella Qiu | ) www.reuters.com time to read: +5 min

S&P 500 futures advanced 0.2% while Nasdaq futures edged 0.1% higher. Also, Chinese trust firm Zhongrong International Trust Co, with exposure to Chinese property developers, said over the weekend it was unable to make payments on some trust products on time. The euro recovered 0.1% to $1.0673 in early Asia trade, after slumping to a 3-1/2 month low of $1.0629 last week as the European Central Bank signalled its rate hikes could be over. Brent crude futures rose 0.3% at $94.20 per barrel and U.S. West Texas Intermediate crude futures were up 0.4% at $91.14. Reporting by Stella Qiu; Editing by Lincoln Feast and Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

Persons: BOE, BOJ, Tommy Xie, Jerome Powell, Chris Weston, Weston, Kazuo Ueda, Cash Treasuries, Stella Qiu, Lincoln Organizations: SYDNEY, Federal Reserve, Bank of Japan, Nasdaq, Japan's Nikkei, China Evergrande, HK, International Trust Co, Greater, Greater China Research, OCBC Bank, U.S . Federal, Fed, U.S ., Bank of England, Treasury, Amazon, European Central Bank, Brent, . West Texas, Thomson Locations: China, Asia, Pacific, Japan, Hong Kong, Beijing, Greater China, Tokyo

☆ ‘Argentina on the Channel.’ Mark Carney and Liz Truss clash over UK economy
▼ + stars: | 2023-09-18 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

London CNN —When Liz Truss was briefly Britain’s prime minister a year ago, the world’s sixth-largest economy came close to resembling Argentina, a country plagued by financial and economic instability. Truss and her Brexit-backing allies have long argued that lower taxes and fewer regulations — akin to Singapore’s approach — would help kickstart sorely needed growth in the UK. Britain, for its part, is battling stubbornly high inflation, feeble economic growth and a rising public debt burden, which is the costliest to service among rich economies. At the time, Carney, who was head of the Bank of England from 2013 to 2020, accused Truss’s government of “undercutting” the nation’s economic institutions. “Mark Carney is part of the 25-year economic consensus that has led to low growth across the Western world,” she said.

Persons: Liz Truss, Mark Carney, kickstart, Carney, “, Kwasi Kwarteng, Truss’s, undercutting, “ Mark Carney, ”, ” Truss, Olesya Dmitracova Organizations: London CNN, Bank of England, Institute for Government Locations: Argentina, United Kingdom, Montreal, Singapore, London

☆ Oil inches higher on supply concerns, China demand recovery
▼ + stars: | 2023-09-18 | by ( ) www.cnbc.com time to read: +2 min

Two large oil tankers unload at the 300,000-ton crude oil terminal in Yantai Port, Shandong Province, China, July 9, 2023. Oil prices inched higher on Monday, buoyed by forecasts of a widening supply deficit in the fourth quarter after Saudi Arabia and Russia extended cuts and on optimism of a demand recovery in China, the world's top crude importer. Traders will be watching decisions by central banks, including the Federal Reserve, this week on interest rate policies. "The Fed is expected to pause rate hikes this time but is likely to stay hawkish," CMC's Teng said. A pause in U.S. rate hikes could weaken the greenback which makes dollar-denominated commodities such as oil more affordable for holders of other currencies.

Persons: Tina Teng, WTI, CMC's Teng Organizations: Brent, West Texas, CMC, ANZ, International Energy Agency, Organization of, Petroleum, Traders, Federal Reserve Locations: Yantai Port, Shandong Province, China, Saudi Arabia, Russia, OPEC, Ukraine

☆ Morning Bid: Chips are down
▼ + stars: | 2023-09-18 | by ( ) www.reuters.com time to read: +2 min

The global chip sector is stealing the spotlight from major central banks, after the world's top contract chipmaker raised concerns over demand, hitting share prices of semiconductor stocks. In a week packed with central bank meetings, decisions are also due from the U.S. Federal Reserve on Wednesday and Bank of England on Thursday. After the European Central Bank's fireworks last week, the euro will be closely watched as a signal for whether the backlash from more hawkish ECB members is gaining any traction with traders and investors. The BOE is likely to hike interest rates for the 15th time later in the week, while the Fed seems set for a hawkish pause. One more little complication is the steady grind higher in oil prices to new highs that is stoking inflation concerns, just as central banks in most developed economies are at or approaching the end of their tightening cycles.

Persons: Vidya Ranganathan, chipmaker, There's, Kazuo Ueda, BOE, Guindos, Panetta, Sam Holmes Organizations: Vidya, Reuters, General Motors, Ford, Chrysler, International, Co, of, U.S . Federal Reserve, Bank of England, ECB, Thomson Locations: Asia, Detroit

☆ European shares slip with central banks in focus; Nordic Semiconductor slumps
▼ + stars: | 2023-09-18 | by ( ) www.reuters.com time to read: +1 min

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 15, 2023. The pan-European STOXX 600 (.STOXX) edged 0.2% lower by 0705 GMT, with healthcare (.SXDP) and rate-sensitive technology stocks (.SX8P) weighing on the index. Global central banks will take centre stage this week, with Bank of England likely to hike interest rates for the 15th time later in the week, while the Fed seems set for a hawkish pause. Nordic Semiconductor ASA (NOD.OL) shed nearly 14% after cutting its revenue guidance for the third quarter. Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Varun H KOur Standards: The Thomson Reuters Trust Principles.

Persons: Slawomir Krupa, Bansari Mayur, Varun Organizations: REUTERS, Staff, Bank of, Nordic Semiconductor ASA, Societe, Thomson Locations: Frankfurt, Germany, Norway, Sweden, Switzerland, United States, Bank of England, Bengaluru

As a result, they’re almost sure to leave their key interest rate unchanged when their meeting ends Wednesday. Claudia Sahm, a former Fed economist, said she thinks a “soft landing,” in which the Fed manages to curb inflation without causing a recession, remains possible. But she cautioned that inflation might stay higher for longer than the central bank expects. Or, she suggested, the cumulative effects of the Fed's 11 rate hikes could ultimately tip the economy into recession. “I expect we’ll need to hold rates at restrictive levels for some time,” said Susan Collins, president of the Federal Reserve Bank of Boston.

Persons: they’re, Jerome Powell, Claudia Sahm, ” Sahm, “ They’re, ”, Christopher Waller, Powell, “, They're, Jose Torres, Susan Collins, Lorie Logan, William English Organizations: WASHINGTON, Federal, Wall Street, Fed, Fed's, Governors, CNBC, Interactive, Federal Reserve Bank of Boston, Dallas Fed, European Central Bank, Bank of England, Bank of Japan, “, Yale School of Management Locations: Jackson Hole , Wyoming, Ukraine, U.S

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