November 1, 2023
United States:
Fed’s ‘Hawkish Pause’ to Keep Option to Hike
The Federal Reserve is poised to hold interest rates steady at a 22-year high for a second meeting, while leaving open the possibility of another hike as soon as December with economic growth staying resilient.
The Federal Open Market Committee will keep rates unchanged at its two-day meeting ending Wednesday in a range of 5.25% to 5.5%, a level first reached in July. The rate decision and an accompanying statement will be released at 2 p.m. in Washington. Chair Jerome Powell will hold a press conference 30 minutes later.
Europe:
European Stocks Rise Ahead of Fed Rates Decision; Orsted Falls
European equities rose as bond yields cooled after US slowed the pace of its planned sales of longer-term securities, while investors awaited Federal Reserve’s interest rate decision later on Wednesday. Orsted A/S slumped after a $4 billion writedown.
The Stoxx Europe 600 was up 0.5% by 1:06 p.m. in London. Retailers stocks led gains, while media and chemicals lagged. British clothing retailer Next Plc gained after raising profit guidance, while Orsted said it dropped the development of two US wind projects and recorded $4 billion in impairments as the crisis in the wind industry worsens.
Asia:
BOJ Buys More Bonds to Slow Rising Yields a Day After Tweak
The Bank of Japan stepped into the bond market unexpectedly Wednesday to curb the pace of gains in sovereign yields, just a day after announcing it was loosening its grip on debt prices.
The central bank’s unscheduled purchase operation statement came as the benchmark 10-year bond yield touched 0.97% — a fresh decade-high but still below the 1% cap it removed in favor of a more flexible policy setting.
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