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Gold on track for first loss in 3 sessions as traders await Fed policy decision

“All eyes will be on the Fed as its rate setting Federal Open Market Committee releases its policy decision at 2 p.m” writes Markets Commodities Reporter for marketwatch.com. The rate decision will be announced at 2 p.m.Gold futures headed lower on Wednesday, on track to post their first loss in three sessions, ahead of a Federal Reserve decision that could set the near-term tone for bullion trading for the next several weeks.December gold GCZ19, -0.04%  on Comex fell by 80 cents, or 0.05%, to $1,512.60 an ounce, threatening to snap…

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Dow Futures Drift Lower, Global Markets Cautious Ahead of Fed Rate Decision

“Global stocks traded cautiously Wednesday, with investors focused on both the U.S. Federal Reserve’s September rate decision later today in Washington and the impact of last weekend’s attacks on two key Saudi oil facilities on world crude markets” writes Martin Baccardax for thestreet.com. The U.S. dollar index, which tracks the greenback against a basket of six global currency peers, was marked 0.2% higher at 98.47, while benchmark 2-year U.S. Treasury bond yields rallied 5 basis points to 1.705%. Source: thestreet.com

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You Should Be Very, Very Worried About the Credit Market

“Added together, these factors are testing the limits of the $2.2 trillion repurchase agreement – or repo – market, a gray but essential component of the U.S. financial system” writes Min Read for reuters.com. Whatever the cause, the episode has added fuel to the argument that the Fed needs to take steps to avoid more disruptions in the repo market down the road.Such a permanent financing program will allow eligible participants to exchange their bonds for cash at a set interest rate.The repo market underpins much of the U.S. financial…

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Fed carries out repo operation for second straight day

“The U.S. central bank carried out the full $75 billion of repos, temporarily buying securities from Wall Street dealers to inject liquidity into the system” writes Sunny Oh for marketwatch.com. Earlier this week, a surge in the repurchasing rate, used by hedge funds and banks to fund their trading operations, pushed the fed funds rate close to the top of its targeted range. The incident stirred worries that the central bank is at risk of losing its grip over its benchmark interest rate. Source: marketwatch.com

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Stocks open slightly lower ahead of Fed decision

“U.S. stocks edged slightly lower at the opening bell Wednesday, as investors awaited the conclusion of a Federal Reserve policy meeting that’s expected to deliver another quarter-point rate cut” writes William L for marketwatch.com. While the Fed is expected to cut rates when it concludes its meeting, investors will be watching for signs the Fed is ready to deliver further easing in coming months.The Dow Jones Industrial Average DJIA, -0.28% was down 88 points, or 0.3%, to 27,023, while the S&P 500 SPX, -0.32% lost 9 points, or 0.3%, to…

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Need to Know: Charles Schwab’s Liz Ann Sonders warns against inflation and interest-rate complacency

“Investors will be listening up for future policy hints and its thoughts on oil prices and maybe on this scarcity of cash issue” writes Markets Reporter for marketwatch.com. Europe stocks SXXP, +0.08% are slightly higher, while Asia markets ADOW, -0.47% went nowhere ahead of the Fed decision.Dow YM00, -0.13%  , S&P ES00, -0.16%  and Nasdaq NQ00, -0.22%  are edging south, and oil CLV19, -1.37% is down again.Between an attack on Saudi Arabia’s oil and a credit crunch disrupting short-term money markets, there has been a lot to chew on this…

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PUMP: NY Fed Doubles-Down on Repo Intervention as Bank Cash Crisis Rattles Markets…

“Unless there’s a big surprise, the markets’ response to tomorrow’s Fed announcement will focus on forward guidance,” said LPL Financial chief investment strategist John Lynch” writes Martin Baccardax for thestreet.com. “Reserves have been declining since 2014 and we expect them to decline further as Treasury’s cash balance increases and currency in circulation grows.”.  Source: thestreet.com

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Investors are too complacent about inflation and low interest rates, says Schwab strategist

“Investors will be listening up for future policy hints and its thoughts on oil prices and maybe on this scarcity of cash issue” writes Markets Reporter for marketwatch.com. Europe stocks SXXP, +0.11% are slightly higher, while Asia markets ADOW, -0.49% went nowhere ahead of the Fed decision.Dow YM00, -0.16%  , S&P ES00, -0.19%  and Nasdaq NQ00, -0.22%  are edging south, and oil CLV19, -0.56% is down again.Between an attack on Saudi Arabia’s oil and a credit crunch disrupting short-term money markets, there has been a lot to chew on this…

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Bonds remain bid on the session as focus stays on the Fed

“The bond market is on the move today as we see some positioning flows ahead of the Fed decision later in the day” reports forexlive.com. If anything else, it just tells us that markets are feeling a bit mixed on positioning going into the Fed. As such, I wouldn’t read this as the bond market positioning itself for a more dovish Fed to follow but rather just some light positioning flows ahead of the main event announcement.Of note, Treasuries are staying bid with 10-year yields now seen down by ~4…

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PUMP: New York Fed steps into market to move interest rates…

“New York (AFP) – The New York Federal Reserve Bank on Tuesday stepped into financial markets for the first time in more than a decade to keep interest rates in line with the Fed’s target” reports yahoo.com. The New York Fed said the $75 billion in repurchase agreements — known as “repos” — were made “in order to help maintain the federal funds rate within the target range of 2 to 2-1/4 percent.”. The New York Fed conducts regular operations to implement the FOMC’s policy but the rate had moved…

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