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☆ Bank of England surprises as it hikes rates to 5%
▼ + stars: | 2023-06-22 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of England surprises as it hikes rates to 5%Neil Shearing, chief economist at Capital Economics, speaks to CNBC's Joumanna Bercetche about the Bank of England's rate rise to 5%

Persons: Neil Shearing, CNBC's Organizations: Email Bank, England, Capital Economics, Bank of

☆ Bank of England hikes interest rates to 5%, stoking fears of a ‘mortgage bomb’
▼ + stars: | 2023-06-22 | by ( Hanna Ziady | ) edition.cnn.com time to read: +6 min

London CNN —The Bank of England raised interest rates by half a percentage point Thursday, after data this week revealed surprisingly stubborn inflation. Many mortgage holders due to refinance their loans this year and next bought their homes when interest rates were much lower and mortgage rates were closer to 1% or 2%. Capital Economics is forecasting a 12% decline in house prices between their August 2022 peak and 2024. If interest rates must stay higher for longer to tame inflation, house prices could fall more sharply. “If mortgage rates were to stay at 6% for several years, a house price fall of 25% would be likely,” Wishart said.

Persons: we’ve, Andrew Bailey, ”, Jake Berry, Rishi Sunak, ” Simon Pittaway, Tom Bill, Knight Frank, Bill, Banks, ” Bill, “, There’s, Andrew Wishart, ” Wishart Organizations: London CNN —, Bank of England, ” Bank of England, ” Financial, “, Institute for Fiscal Studies, UK Finance, CNN, Savings, Capital Economics Locations: United Kingdom, United States, Europe, —

Economists polled by Reuters had forecast that the annual consumer price inflation rate would drop to 8.4% in May, moving further away from October's 41-year high of 11.1%. "May's CPI figures ratchet up the pressure on the Monetary Policy Committee to increase Bank Rate substantially further over the coming months," Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said. Food and drink price inflation dropped slightly to 18.3% from April's 19.0%. The BoE is widely expected to raise interest rates on Thursday to 4.75% from 4.5%. After Wednesday's data, markets fully priced in interest rates reaching 6% by December - up from around a 50% chance of such a move on Tuesday.

Persons: Henry Nicholls, Samuel Tombs, Sterling, BoE, Grant Fitzner, . Paul Dales, Rishi Sunak, Jeremy Hunt, Andrew Heavens Organizations: Bank of England, REUTERS, Bank of, Reuters, Monetary, Committee, Pantheon, U.S ., National Statistics, ., Capital Economics, Bank, Fed, ECB, Thomson Locations: City, London, Britain, Bank of England

☆ Poland wants to boost its minimum wage by 20% — and it's got economists worried
▼ + stars: | 2023-06-21 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

The Polish government has proposed an increase to national minimum of around 20% in 2024, a move economists believe will keep inflation higher for longer. Jan Woitas/picture alliance via Getty ImagesPoland's government has proposed a record rise in the national minimum wage of more than 23%, a move economists are worried will exacerbate double-digit inflation. In an interview with state-controlled news agency PAP last month, Polish Family and Social Policy Minister Marlena Malag said the minimum wage increase was designed to help people cope with the increased cost of living. Consumer price inflation in Poland eased in May, but still increased 13% year-on-year. He highlighted that given a "notable increase" in the number of workers that receive minimum wage in Poland in recent years, the impact of the latest increase is likely to be "meaningful."

Persons: Jan Woitas, —, Donald Tusk, Marlena Malag, Adam Glapinski, Rafal Benecki, Benecki, Nicholas Farr Organizations: Justice, Getty Images, Coalition, European, Social, National Bank of Poland, Monetary, ING Poland, Capital Economics Locations: WARSAW, Poland, Warsaw, Central, Eastern Europe, Polish, Europe

☆ China cuts lending benchmarks to revive slowing demand
▼ + stars: | 2023-06-20 | by ( ) www.reuters.com time to read: +4 min

REUTERS/Thomas Peter/FILE PHOTOSHANGHAI/SINGAPORE, June 20 (Reuters) - China cut its key lending benchmarks on Tuesday, the first such reductions in 10 months as authorities seek to shore up a slowing economic recovery, although concerns about the property market meant the easing was not as large as expected. The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.55%, while the five-year LPR was cut by the same margin to 4.20%. The People's Bank of China (PBOC) lowered short- and medium-term policy rates last week. "There is no need to roll out all policy measures all at once." Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

Persons: Thomas Peter, Julian Evans, Pritchard, Xing Zhaopeng, Xing, China's, Bruce Pang, Jones Lang LaSalle, Winni Zhou, Tom Westbrook, Kripa Jayaram, Sam Holmes Organizations: Central Business, REUTERS, Capital Economics, Reuters, Mainland Properties, People's Bank of China, ANZ, Jones, Graphics, Thomson Locations: Beijing, China, SHANGHAI, SINGAPORE, outpacing

☆ China cuts two more key lending rates as economy sputters
▼ + stars: | 2023-06-20 | by ( Clement Tan | ) www.cnbc.com time to read: +1 min

The People's Bank of China has cut several key policy rates to bolster economic growth in the world's second-largest economy. The People's Bank of China cut two more key lending rates on Tuesday for the first time in 10 months to prop up growth in the world's second largest economy. The Chinese central bank cut the one-year loan prime rate by 10 basis points from 3.65% to 3.55%, and trimmed the five-year loan prime rate by 10 basis points from 4.3% to 4.2% — for the first time since August. "On their own, 10bps cuts are too small to make a great deal of difference to monetary conditions, especially since market interbank rates are already below policy rates," Capital Economics' Julian Evans-Pritchard and Zichun Huang wrote in a note. "But the PBOC tends to use changes in policy rates as signaling tool, with the heavy lifting being done by other tools such as adjustments to reserve requirements and bank loan quotas," they added.

Persons: Julian Evans, Pritchard, Zichun Huang Organizations: People's Bank of, People's Bank of China, Country Locations: People's Bank of China, Hong Kong

☆ European gas prices jump 50% in June
▼ + stars: | 2023-06-16 | by ( Anna Cooban | ) edition.cnn.com time to read: +4 min

Prices reversed course mainly because of longer-than-expected maintenance outages at key gas plants in Norway, analysts told CNN. “The recent price rally shows just how sensitive the European market is to disruption,” said Bill Weatherburn, a commodities economist at Capital Economics. European natural gas prices are still far below their levels last summer, when the continent found itself locked in an energy standoff with Russia following Moscow’s invasion of Ukraine. The field is one of the biggest in the world but now accounts for just a fraction of Europe’s gas supply. “The European gas market — and by extension the global gas market — [is] certainly not out of the woods in terms of adequately matching supply with demand,” Tom Marzec-Manser, head of gas analytics at ICIS, told CNN.

Persons: ”, Bill Weatherburn, Tom Marzec, ” Massimo Di Odoardo, Wood Mackenzie, ” Henning Gloystein, Di Odoardo Organizations: London CNN, Benchmark, Independent Commodity Intelligence Service, CNN, Capital Economics, European Union, Gas, Gas Infrastructure, Wood, Eurasia Group, Norway “ Locations: Norway, Russia, Ukraine, Moscow, Europe, Netherlands, Groningen, “, Gas Infrastructure Europe, Japan, South Korea, Asia, Russian

Retail sales - a key gauge of consumer confidence - rose 12.7%, missing forecasts of 13.6% growth and slowing from April's 18.4%. Data ranging from factory surveys and trade to loan growth and home sales have shown signs of weakness for the world's second-biggest economy. China's stock markets rose after the rates cut, with the benchmark CSI 300 gaining 0.6% in early trade, while Hong Kong's Hang Seng Index climbed 1.2%. The sector is expected to grapple with "persistent weakness" for years, dragging on economic growth, Goldman Sachs analysts said this week. The country's biggest banks recently cut their deposit rates to ease pressure on profit margins and encourage savers to spend more.

Persons: China's, Zhiwei Zhang, Bruce Pang, Jones Lang LaSalle, Pang, Hong, Julian Evans, Pritchard, Yi, Goldman Sachs, Albee Zhang, Sam Holmes Organizations: National Bureau of Statistics, Jones, CSI, Capital Economics, Investment, Thomson Locations: BEIJING, Beijing, China, outflows

Ministry of Finance data showed on Thursday that exports rose 0.6% year-on-year in May, for the 27th straight month of rises, led by 66% growth in car shipments. Reuters GraphicsThis year, domestic demand may temporarily outpace slumping exports as a key driver of growth, said Takeshi Minami, chief economist at Norinchukin Research Institute. Separate government machinery orders data, also released Thursday, underlined the struggles faced by manufacturers though the overall numbers suggested the services sector is providing some cushion to the economy. U.S.-bound exports, another key market for Japanese exports, grew 9.4% in the year to May on double-digit gain in car shipment. "For the outlook of Japanese exports, the U.S. Fed's rate-hike pause is a positive news that will further vitalise American private consumption", said Kazuma Kishikawa, economist at Daiwa Institute of Research.

Persons: Darren Tay, Takeshi Minami, Kazuma Kishikawa, Tetsushi Kajimoto, Riddhima Talwani, Shri Navaratnam Organizations: Ministry of Finance, Capital Economics, Reuters, Norinchukin Research, Bank of Japan, Daiwa Institute of Research, Thomson Locations: TOKYO, Taiwan, South Korea, Japan, China, U.S

☆ Expect Japan to enter a recession 'before long,' economist says
▼ + stars: | 2023-06-15 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailExpect Japan to enter a recession 'before long,' economist saysMarcel Thieliant, head of Asia-Pacific at Capital Economics, says the worst is yet to come and he still expects that the U.S. will enter a recession later this year and growth in Europe will remain "extremely weak."

Persons: Marcel Thieliant Organizations: Capital Economics Locations: Asia, U.S, Europe

☆ Why economists say it's a near certainty that housing inflation will soon fall
▼ + stars: | 2023-06-14 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

That gives housing an outsized influence on the overall direction of inflation data. Housing inflation has been stubbornly high for months, according to CPI data. But economists think it has peaked and is on the precipice of a reversal. "I know this with about as high a degree of confidence as one could have," Mark Zandi, chief economist at Moody's Analytics, said of falling housing inflation being near at hand. The latest CPI reading, issued Tuesday, showed a monthly increase in shelter inflation, to 0.6% in May from 0.4% in April.

Persons: Richard Newstead, Mark Zandi, Andrew Hunter, Jason Furman, Obama Organizations: Moody's, Capital Economics, CNBC, Finance, Social Security, U.S . Bureau of Labor Statistics, BLS, Harvard University, White House Council, Economic Advisers, Twitter, CPI

☆ UK homeowners brace for more mortgage pain as borrowing costs shoot up
▼ + stars: | 2023-06-14 | by ( Anna Cooban | ) edition.cnn.com time to read: +4 min

London CNN —Existing and aspiring UK homeowners are bracing for a fresh wave of misery as a rise in benchmark borrowing costs threatens to push up monthly mortgage payments. The yield on the country’s two-year government bonds — which is used to set interest rates on mortgages — jumped to 4.87% on Tuesday. The figures have pointed to persistent inflationary pressures, increasing the chances of more interest rate hikes by the Bank of England and driving up gilt yields. “We’ve had to reflect that in our mortgage rates,” the spokesperson said. “[UK inflation] is a chronic problem, and it’s not something that you can deal with quickly.”

Persons: Liz Truss, Craig, Samuel Tombs, “ We’ve, Paul Dales, “, Truss, Henry Nicholls, ”, Ed Al Organizations: London CNN, Bank of England, Royal London Asset Management, CNN, Pantheon, UK Finance, HSBC, HSBC UK, Capital Economics, Reuters, Columbia Threadneedle Investments Locations: United Kingdom, Europe, United States

☆ The Fed just paused on raising interest rates. Here's what it means for jobs, prices, and your bank account this summer.
▼ + stars: | 2023-06-14 | by ( Bartie Scott | Andy Kiersz | ) www.businessinsider.com time to read: +7 min

The Federal Reserve announced Wednesday that it would not raise interest rates this month. It's important to note that a one-time pause doesn't mean interest rates won't rise any more at future meetings, but the committee signaled that an end is in sight. The decision included a projection of two more 25 basis point rate hikes before the end of the year. Critics of the Fed's aggressive rate hikes over the last year have said they risk putting Americans out of work by squeezing businesses. The Fed needs to slow down on these extreme rate hikes and remember its dual mandate of price stability and maximum employment.

Persons: —, Jerome Powell, Noah Sheidlower, Jobs, Massachusetts Sen, Elizabeth Warren, Powell, it's, Joe Brusuelas, Brusuelas, Kathy Gramling, Marta Norton, Norton Organizations: Federal Reserve, Service, Fed, Capital Economics, Food, RSM, EY, Morningstar Wealth's America, Silicon Valley Bank, First, FDIC Locations: Massachusetts, EY Americas, Silicon, First Republic

☆ It's Fed Day. Here's what markets are eyeing as Powell gets ready to speak.
▼ + stars: | 2023-06-14 | by ( Max Adams | ) www.businessinsider.com time to read: +5 min

The Federal Reserve is set to announce a critical policy decision today — hike (possibly), pause (likely), or cut (probably not). The Fed has made 10 consecutive rate hikes leading up to today, making for one of its most aggressive tightening campaigns ever. Tuesday's cooler-than-expected inflation data is still double the Fed's 2% target, which suggests there could be more hawkishness ahead. Meanwhile, Wharton professor Jeremy Siegel suggested in a separate note that the Fed may actually be done with policy tightening altogether. He explained that, since he doesn't see a recession, the stock market could actually rally higher across all sectors because of investor FOMO.

Persons: Jerome Powell, David Bahnsen, Mohamed El, —, Christopher Waller, Wharton, Jeremy Siegel, Powell, Goldman Sachs, David Solomon, Tom Lee, FOMO, Read, Warren Buffett's, they're, Qatar's Sheikh Jassim, Jim Ratcliffe, Max Adams, Hallam Bullock, Nathan Rennolds Organizations: Federal, Reuters, Bahnsen, Reserve, Spar Group, Capital Economics, Berkshire Hathaway, Manchester United Locations: New York, London

☆ China cuts short-term borrowing costs as economy slows
▼ + stars: | 2023-06-13 | by ( ) www.reuters.com time to read: +4 min

SummarySummary Companies PBOC lowers 7-day reverse repo to 1.9% vs. 2.0% prev. The People's Bank of China (PBOC) cut its seven-day reverse repo rate by 10 basis points to 1.90% from 2.00% on Tuesday, when it injected 2 billion yuan ($279.97 million) through the short-term bond instrument. "The central bank's rate cut decision was not a complete surprise to the market," said Ken Cheung, chief Asian FX strategist at Mizuho Bank. Tuesday's rate cut suggests policymakers are increasingly worried about the health of China's recovery, traders and analysts said. "However, the market is expecting the PBOC to cut the policy rate further.

Persons: 10bp, Ken Cheung, Yi Gang, Cheung, Marco Sun, Frances Cheung, Julian Evans, Pritchard, Winni Zhou, Tom Westbrook, Kim Coghill, Sam Holmes Organizations: People's Bank of China, Mizuho Bank, MUFG Bank, OCBC Bank, Capital Economics, Thomson Locations: SHANGHAI, SINGAPORE, China, United States, outflows

LONDON/SINGAPORE (Reuters) - The dollar fell slightly on Tuesday as investors awaited U.S. inflation data, while China’s yuan slipped to a six-month low after the central bank lowered a short-term lending rate to boost the economy. That helped push the dollar index, which measures the currency against six peers, down 0.26% to 103.32. The onshore yuan bottomed at 7.168 per dollar, its lowest since last November, and last traded at 7.152. Its offshore counterpart weakened to a new six-month low of 7.178, before paring its losses slightly. The Aussie dollar rose more than 0.4% to its highest since May 11 at $0.679, and was last at $0.678.

Persons: Dado Ruvic, Jane Foley, “ What’s, ” Foley, Julian Evans, Pritchard, ” Sterling Organizations: LONDON, REUTERS, Federal Reserve, Rabobank, Fed, Capital Economics, of England, Bank of Japan Locations: SINGAPORE, Asia, China

The regional Stoxx 600 index was up 0.45% at 8:20 a.m. London time, with all sectors bar utilities — down 0.4% — posting gains. Mining stocks shook off recent negativity to climb 1.14%, while tech stocks rose 1.54%. European stock markets opened higher as investors braced for the latest meeting of the U.S. Federal Reserve, which begins Tuesday. The data "will only add to the heat already on the Bank of England to raise interest rates further at the policy meeting next Thursday," said Ashley Webb, U.K. economist at Capital Economics. Investors are also preparing for the European Central Bank's monetary policy meeting Thursday, at which a 25 basis point hike is widely expected.

Persons: Dow Jones, Ashley Webb Organizations: Mining, U.S . Federal Reserve, U.S, Economists, Nasdaq, Bank of England, Capital Economics, Central Locations: London, U.K

☆ China makes surprise rate cut as economic recovery loses steam
▼ + stars: | 2023-06-13 | by ( Laura He | ) edition.cnn.com time to read: +3 min

The rate will drop to 1.9% from 2%, according to the People’s Bank of China. The rate cut reveals “growing concerns among policymakers” about the health of China’s recovery, Capital Economics analysts said on Tuesday. “The … rate cut came earlier and sharper than our and market expectations, highlighting the sense of urgency to alleviate economic momentum and business confidence,” said Becky Liu, head of China macro strategy for Standard Chartered Bank. That rate cut also came as a surprise and followed a week of turmoil in global financial markets triggered by the failure of some regional US banks. In the language of China’s policymakers, that implies a bias towards easing monetary policy, said Larry Hu, chief China economist for Macquarie Group.

Persons: ”, Becky Liu, Zhaopeng Xing, Betty Wang, Yi Gang, Larry Hu, “ Governor Yi Organizations: Hong Kong CNN, People’s Bank of China, Capital, Standard Chartered Bank, PMI, ANZ Research, Macquarie Group, “ Locations: Hong Kong, China

☆ UK employment hits record high but the economy is still short 1 million workers
▼ + stars: | 2023-06-13 | by ( Hanna Ziady | ) edition.cnn.com time to read: +4 min

London CNN —The number of people in work in the United Kingdom has climbed above its pre-pandemic level for the first time, reaching a record high. Employment hit a record 33.1 million between February and April, with increases in both the number of employees and self-employed workers, the Office for National Statistics said Tuesday. Employment in the United Kingdom has recovered more slowly than in any other major economy since the pandemic, according to the UK Institute for Employment Studies. This is the fastest rise on record, apart from the period when the figures were distorted by the pandemic, Morgan noted. Food inflation remained above 19% — near a 45-year high — hitting poor households the hardest because they spend more of their available income on food.

Persons: Darren Morgan, Morgan, Liz Truss, Jeremy Hunt, ”, Ashley Webb, Anna Cooban Organizations: London CNN, National Statistics, Employment, UK Institute for Employment Studies, Bank of, “, Capital Economics, Bank, Ill Locations: United Kingdom, Europe, United States

Economists polled by Reuters had expected new yuan loans would jump to 1.6 trillion yuan last month, versus 718.8 billion yuan in April and against 1.89 trillion yuan a year earlier. Outstanding yuan loans in May grew 11.4% on year compared with 11.8% growth the previous month. Household loans including mortgages were up 367.2 billion yuan in May, versus a contraction of 241.1 billion yuan in April. Corporate loans rose to 855.8 billion yuan in May from 683.9 billion yuan in April, central bank data showed. In May, TSF rose to 1.56 trillion yuan from 1.22 trillion yuan in April.

Persons: Zhiwei Zhang, Yi Gang, Nomura, TSF, Qiaoyi Li, Judy Hua, Kevin Yao, Jacqueline Wong Organizations: People's Bank of China, Reuters, PMI, Capital, Analysts, U.S, Thomson Locations: BEIJING, Shanghai, Beijing, U.S . Federal, TSF

☆ Italians are furious over soaring pasta prices and some are threatening a macaroni strike
▼ + stars: | 2023-06-12 | by ( Associated Press | ) www.businessinsider.com time to read: +7 min

Grocery prices in Europe have been on the rise. Britain — where food inflation has reached 45-year highs — is discussing a similar move. In comparison, U.S. food prices rose 7.7% in April from a year earlier, 8.2% in Japan and 9.1% in Canada. Such controls could actually make food inflation worse by increasing demand from shoppers but discouraging new supply, he said. "The current food price shock does not warrant such intervention," Shearing said.

Persons: —, Furio Truzzi, Borey, Helen Barnard, Anna Sjovorr, hasn't, that's, Neil Shearing, Shearing, SWG pollsters, Carlo Compellini, Marie Antoinette, Roberto Dipiazza Organizations: Service, Shoppers, European Union, Trussell, European Central Bank, U.S . Federal, Capital Economics Locations: Europe, Rome, U.S, Japan, Ukraine, Paris, Britain, Hungary, Croatia, Spain, United Kingdom, London, Canada, Trieste, Italian

☆ Global manufacturing is sputtering
▼ + stars: | 2023-06-11 | by ( Bryan Mena | ) edition.cnn.com time to read: +8 min

S&P Global data showed that the US manufacturing sector fell into contraction territory in May. Business conditions in China’s manufacturing industry, the largest in the world, improved in May, according to the Caixin manufacturing Purchasing Managers’ Index. Globally, manufacturers’ optimism fell to its lowest level since December, according to the JPMorgan Global Manufacturing PMI. The possibility of China reinvigorating global economic growth is slipping. That could eventually lead to global manufacturers trimming their workforces if demand for goods continues to weaken and their backlogs shrink further.

Persons: ”, Ariane Curtis, “ We’ve, Tom Garretson, Jerome Powell, hasn’t, won’t bode, Liu Young, Monish Patolawala Organizations: DC CNN — Manufacturers, Factories, P, Institute for Supply Management, Commerce Department, JPMorgan Global Manufacturing PMI, Capital Economics, International Monetary Fund, RBC Wealth Management, Credit Suisse, UBS, The Federal Reserve, European Central Bank, Fed, Apple, 3M, National Association of Manufacturers Locations: Washington, United States, Ireland, China, Europe, Germany, Europe’s

☆ Wall Street Week Ahead: Investors rethink recession plays, boosting U.S. stock market laggards
▼ + stars: | 2023-06-09 | by ( David Randall | ) www.reuters.com time to read: +5 min

"There's reason to believe that the pessimism we saw at the start of the year is giving way to a stronger-than-expected market." Murray has increased his allocation to small-cap stocks, which tend to be among the most direct beneficiaries of economic growth. Other rebounding segments in June include the S&P 500 energy sector, which has gained 6% this month and S&P 500 industrials, up 5.7%. Ten of the 11 S&P 500 sectors are firmer for the month to date, compared to only six for the year. Stronger-than-expected jobs growth and robust consumer spending have been among the data points that have bolstered investors' economic outlook.

Persons: Tim Murray, T Rowe Price's, Murray, Russell, Dow, Howard Silverblatt, Goldman Sachs, Saira Malik, Max Wasserman, David Randall, Saqib Iqbal Ahmed, Lewis Krauskopf, Ira Iosebashvili, Richard Chang Organizations: YORK, Energy, Reuters, Apple Inc, Microsoft Corp, Inc, Amazon.com Inc, Nvidia Corp, Tesla Inc, Dow Jones, Capital Economics, Miramar Capital, Starbucks Corp, Target Corp, Thomson Locations: U.S

BEIJING, June 9 (Reuters) - China's factory gate prices fell at the fastest pace in seven years in May and quicker than forecasts, as faltering demand weighed on a slowing manufacturing sector and cast a cloud over the fragile economic recovery. "The risk of deflation is still weighing on the economy," said Zhiwei Zhang, chief economist at Pinpoint Asset Management, in a note. China's economy grew faster than expected in the first quarter, but recent indicators show demand is rapidly weakening with exports, imports and factory activity falling in May. Food price inflation, a key driver of CPI, slowed to 1.0% year-on-year from 2.4% in the previous month. On a month-on-month basis, food prices fell 0.7%.

Persons: Zhiwei Zhang, Julian Evans, Pritchard, Dan Wang, Joe Cash, Sam Holmes Organizations: National Bureau of Statistics, Australia, Reuters, Capital Economics, Hang Seng Bank China, Bank of China, China's, Thomson Locations: BEIJING, United States, Europe, China

☆ Wall Street is placing its bets for a big Fed meeting and inflation reports
▼ + stars: | 2023-06-09 | by ( Scott Schnipper | ) www.cnbc.com time to read: +6 min

The betting is also that the latest inflation reading for May that will be reported Tuesday, just as the two-day Fed meeting gets underway, will show additional progress in the fight against higher prices. Those views have helped power a broader stock market rally on Wall Street this month. In fact, the combination of the narrow stock market rally in 2023, until this month at least, plus the low VIX reading, leads Demmert to expect a 10% stock market correction at some point. "The stock market at large is in overbought territory and investors are very complacent, which was the case prior to the past three major declines within this 18-month bear market. Between the June and September meetings, the Fed would get three more inflation and three more payrolls reports.

Persons: Russell, Scott Ladner, Ladner, James Demmert, that's, Demmert, Jerome Powell's, Paul Ashworth, Ashworth, Jerome Powell, John Wiley, CNBC's Hakyung Kim, Michael Bloom, Jeff Cox Organizations: Fed, CME Group, CPI, Horizon Investments, Street Research, Investors, North, Capital Economics, Capital, UBS, Federal, Philadelphia Fed, Adobe, University of Michigan Locations: Charlotte , North Carolina, SPX, downtrends, North America

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