Markets News Regulators 

European pre-market: Steady tones as Fed meeting looms

“Looking ahead, the known unknown for markets today is the Fed meeting” reports forexlive.com. US futures and bond yields are keeping little changed for the time being and with one eye on the Fed, we may observe a more quiet session ahead – barring any surprise headlines.Reports overnight suggested that Trump is planning a delay to the 15 December tariffs but no firm decision has been made just yet, leaving markets a little paralysed still. Source: forexlive.com

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Gold range-bound ahead of Fed decision, tariff deadline

“Spot gold was little changed at $1,464.01 per ounce by 0104 GMT. U.S. gold futures were flat at $1,468.40” reports cnbc.com. Gold prices moved in narrow range on Wednesday, as cautious investors held back from making big bets ahead of U.S Federal Reserve’s monetary policy statement later in the day and amid a looming tariff deadline.One kilogram gold bars are displayed for a photograph at the YLG Bullion International headquarters in Thailand on January 13, 2016.Holdings of the world’s largest gold-backed exchange-traded fund SPDR Gold Trust fell 0.03% to 885.93…

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News Regulators Stocks 

Stocks in Asia edge up ahead of Fed interest rate decision

“Stocks in Asia were little changed in Wednesday morning trade ahead of the U.S. Federal Reserve’s interest rate decision due later in the day stateside” writes Eustance Huang for cnbc.com. That comes as markets have been expecting a “phase one” trade deal to be reached between Washington and Beijing.Investors await the Fed’s final interest rate decision for the year, expected later Wednesday stateside, with expectations that the central bank will keep the rate on hold. Source: cnbc.com

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News Regulators 

Gold prices end higher as focus turns to Fed policy announcement, China trade deal

“Still, gold bulls make the case that signs that U.S. inflation may be edging up and demand for the hard commodity in Asia have underpinned prices” writes Markets Commodities Reporter for marketwatch.com. Higher yields can pressure prices for gold, which doesn’t offer a yield, but a weaker U.S. dollar can help to support buying in dollar-priced precious metals.February gold GCG20, +0.30%  on Comex picked up $3.20, or 0.2%, to settle at $1,468.10 an ounce, following losses in the past two sessions. Source: marketwatch.com

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Americans keep gorging on debt, thanks to the Federal Reserve

“The Federal Reserve raised official interest rates four times 2018, and investors were expecting more of the same this year” writes Brian Frank for marketwatch.com. So why did a mid-2% interest rate prompt such distress in the U.S. economy?. Given these burdensome piles of debt, even a slight increase in interest rates creates millions more in interest payments for consumers and corporations.With the Fed lowering rates, consumers took this as a cue to gorge more by borrowing as opposed to paying down loans.Consumers are increasingly financing their cars, and rising…

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Long-term government bond yields slip as traders gear up for Fed and ECB meetings

“Meanwhile, a first round of three debt auctions this week was unable to shake the bond market from its doldrums” writes Sunny Oh for marketwatch.com. U.S. Treasury yields mostly fell on Monday as traders stayed on the sidelines ahead of coming meetings by the Federal Reserve and the European Central Bank.The 30-year bond yield TMUBMUSD30Y, -0.69% slipped 2 basis points to 2.264%. Source: marketwatch.com

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Fed is likely to reinforce a message of continued low rates

“Powell maintains that the purchases are intended to improve the functioning of the financial system, and not to lower rates” writes The Associated Press for seattletimes.com. WASHINGTON (AP) — The Federal Reserve is expected to send a clear message when its latest policy meeting ends Wednesday: Interest rates will likely stay ultra-low for the foreseeable future.This view has freed the Fed’s policymakers to keep their benchmark short-term interest rate low. Source: seattletimes.com

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When Volcker ruled the Fed, ‘people thought they’d never buy a home again’

“What Volcker did was raise the fed funds rate to levels people never thought they would see” writes Patti Domm for cnbc.com. Volcker allowed the fed funds rate, now topped out at 1.75%, to rise over 20%, and with it went the interest on home mortgages and everything else.There were farmers and business executives out in front of the Fed picketing and complaining about interest rates,” Rupkey said. Source: cnbc.com

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Markets News Regulators 

Causes of Wall Street cash crunch remains mystery…

“A mid-September cash crunch led to a spike in very short-term rates in the repo markets, where banks exchange high-quality collateral for cash with an agreement to buy back those assets with interest” writes Jeff Cox for cnbc.com. A breakdown in the repo market contributed to the sense of panic during the financial crisis.”The resulting drain and swings in reserves are likely to have reduced the cash buffers of the big four banks and their willingness to lend into the repo market.”. The freezing-up of repo markets in late 2008…

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