June 10, 2024
United States:
Traders Are Bracing for Volatility on Fed-CPI Double Blow
Whether it’s another move up or a dive down, traders are bracing for added volatility wrought by Wednesday’s dual macroeconomic catalysts: a report on consumer prices in the morning and the Federal Reserve’s rate decision in the afternoon.
The options market is betting the S&P 500 Index will move 1.25% in either direction that day, based on the cost of at-the-money puts and calls, said Stuart Kaiser, Citigroup Inc.’s head of US equity trading strategy. Should that pricing remain in place by Tuesday’s close, that figure would be the largest implied swing ahead of a Fed decision since March 2023, he added.
United Kingdom:
UK Wage Growth Set to Accelerate, Complicating Path to Rate Cut
UK wage growth may accelerate for the first time in nine months, an uncomfortable pick-up for the Bank of England at a time it’s looking for inflationary pressures to moderate before it cuts interest rates.
Economists expect official data on Tuesday will show regular pay increases accelerating to 6.1% in the three months to April, according to a Bloomberg survey as of Friday afternoon. The data covers the crucial month of April when the minimum wage jumped by almost 10%.
Asia:
Thai Government Aims to Lift 2024 GDP Growth to 3% by Tourists, Investment
Thailand is counting on 1 million more foreign tourist arrivals and faster government spending to help boost economic growth this year to the fastest pace in six years.
The country targets 36.7 million travelers this year, 1 million higher than the previous estimate to help boost gross domestic product growth to 3%, Finance Minister Pichai Chunhavajira told reporters after the meeting of economic ministers on Monday. The latest GDP projection was higher than forecasts by the planning agency and the central bank, and would be the fastest pace since 2018, if it materializes.
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