January 11, 2023
Fed’s No-Rate-Cut Mantra Rejected by Markets Seeing Recession
Federal Reserve officials are making a full-court-press effort to convince investors they won’t be slashing their benchmark interest rate before year’s end.
European Stocks Resume Advance on Hopes of Easing Inflation
European equities rose on optimism around cooling inflation, with US consumer prices data on Thursday seen providing further clues on the path of the Federal Reserve’s monetary policy.
The Stoxx Europe 600 Index added 0.6% by 1:04 p.m. in London. Real estate led the advance as bond yields slipped, while retail shares also outperformed following a strong trading update from JD Sports Fashion Plc. Insurers were hit by Direct Line Insurance Group Plc scrapping its dividend due to a jump in claims.
China Trauma Proves Too Much for US Funds to Trust Xi Just Yet
As recently as October some of the world’s money managers were lamenting the loss of China as an attractive investment destination under President Xi Jinping.
A lot has happened since then. A series of market-friendly pivots on most of Xi’s landmark policies have seen the country’s assets become the world’s top performers. The MSCI China Index has gained about 50% since October, outpacing every major stock gauge. The nation’s junk dollar debt has returned more than 40% and the yuan has posted a record two-month gain.
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