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Yen strengthens 1% against dollar amid shifts in interest rate expectations

Market sentiment has been shifting as traders anticipate the outcome of the upcoming Federal Open Market Committee (FOMC) meeting, scheduled for September 17th and 18th. There is considerable debate over whether the Federal Reserve will implement a 25 basis point (bp) or a more substantial 50 bp rate cut. Currently, the market is pricing in a rate cut of approximately 34 bp, up from 26 bp on September 11th, reflecting heightened expectations of a more aggressive reduction.

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Investor miscalculation: 30% of Bank of Japan interest rate hike predictions prove overestimated

The BoJ, under growing pressure to address inflationary pressures and stimulate economic growth, had earlier implemented a series of interest rate hikes. Many market participants anticipated a continued tightening cycle, expecting the central bank to sustain its aggressive monetary policy stance for an extended period. However, recent indications from the BoJ suggest that the rate hikes might not be as extensive or enduring as previously forecasted.

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Bank of Japan Governor vows vigilance amid market turmoil, hints at future rate hikes

Ueda's comments were delivered during a session of the Diet, which is currently out of session, to clarify the BOJ’s response to recent market fluctuations. The policy adjustment led to heightened volatility in both the stock and currency markets, with the Nikkei Stock Average witnessing its largest-ever single-day drop, followed by a notable recovery. Concurrently, the yen experienced fluctuations, briefly strengthening to the ¥141 range against the dollar before stabilizing.

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Turkey 10-year bond yield surges to 28.8% amidst monetary policy shift

The central bank's decision to maintain a high key interest rate of 50% for the fifth straight meeting underscores its commitment to controlling inflation, despite the recent sharp drop in inflation rates. Concerns about the oversupply of the lira, fueled by high interest rates and foreign investment, continue to pose challenges to Turkey's economic stability.

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Japanese Megabank SMFG sees potential amid market turmoil

Sumitomo Mitsui Financial Group (SMFG) remains an appealing investment despite recent market volatility, with potential upside from rate increases and strategic equity sales. The bank's strong profit growth and improved return on equity make it a contender to watch as Japanese financial markets recover.

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Singapore stocks surge as market optimism rebounds; STI gains 1.1%

The STI’s performance was marked by a strong advance in market sentiment, mirrored by gains across Asian markets. Japan's Nikkei 225 led the charge with a substantial 3.6% increase, while South Korea’s Kospi and Hong Kong’s Hang Seng rose by 2% and 1.9%, respectively. The Australian market also showed significant strength, climbing 1.3% to reach a two-week high, culminating in a 2.5% gain for the week. This surge came on the heels of positive developments on Wall Street, where favorable economic data helped to alleviate recession concerns that had previously weighed heavily on markets.

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