{"id":122874,"date":"2021-10-14T03:31:24","date_gmt":"2021-10-14T03:31:24","guid":{"rendered":"https:\/\/fin2me.com\/?p=122874"},"modified":"2021-10-14T03:31:24","modified_gmt":"2021-10-14T03:31:24","slug":"stocks-up-dollar-squeezed-as-inflation-pulls-forward-rate-hike-bets","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/stocks-up-dollar-squeezed-as-inflation-pulls-forward-rate-hike-bets\/","title":{"rendered":"Stocks up, dollar squeezed as inflation pulls forward rate hike bets"},"content":{"rendered":"

SINGAPORE (Reuters) – Asian stock markets rose, the dollar eased and longer-dated bonds rallied on Thursday as investors reckoned on inflation bringing forward rate hikes around the world.<\/p>

FILE PHOTO: A man wearing a protective face mask amid the coronavirus disease (COVID-19) outbreak, looks at an electronic board displaying Japan’s Nikkei Index outside a brokerage in Tokyo, Japan, September 24, 2021. REUTERS\/Kim Kyung-Hoon<\/figcaption>

MSCI\u2019s broadest index of Asia-Pacific shares outside Japan gained 0.4%. Japan\u2019s Nikkei climbed 1%.<\/p>\n

The Shanghai Composite was marginally softer while<\/p>\n

Hong Kong markets were closed for a holiday.<\/p>\n

Overnight figures showed another solid increase in U.S. consumer prices, while minutes from last month\u2019s Federal Reserve meeting showed policymakers\u2019 growing concern about inflation and a general agreement to start tapering asset purchases soon.<\/p>\n

Traders responded by bringing forward rate-hike expectations but lowering the projected peak. Fed Funds futures pulled forward the first hike from late in 2022 to almost fully price a 25 basis point hike by September, but pricing also suggests rates hovering around just 1.5% in five years\u2019 time.<\/p>\n

Gold had its best session in seven months.<\/p>\n

In the bond market short-term Treasury yields rose while long-term yields fell, flattening the curve. Longer-term yields also fell in Asia on Thursday and the dollar, which rallied through September, pulled back sharply with the decline in longer Treasury yields and took a breather on Thursday. [FRX\/]<\/p>\n

\u201cThe market continued to pull forward the pricing of the first rate hike while also decreasing terminal rate pricing, which we believe is a reflection of the market pricing in a policy mistake,\u201d said analysts at TD Securities.<\/p>\n

Overnight on Wall Street the S&P 500 rose 0.3% and in early Asia trade S&P 500 futures were also up 0.3%. [.N]<\/p>\n

Wednesday\u2019s data showed U.S. consumer prices up 5.4% on a year-on-year basis last month and that increases in rent seemed to be picking up steam – which along with soaring energy costs raises the risk of persistent price pressure.<\/p>\n

In a change from readouts of Fed meetings over the summer, policymakers were also no longer described as \u201cgenerally\u201d expecting inflation pressures to ease.<\/p>\n

Policymakers talked about the timing and structure of reducing bond buying and the minutes said that if a decision to begin tapering takes place next month, the process could begin in either the middle of November or in mid-December.<\/p>\n

Ahead on Thursday, markets are awaiting U.S. producer prices and jobless claims figures as well as appearances from Bank of England and Federal Reserve policymakers.<\/p>\n

POLICY FOCUS<\/h2>\n

Elsewhere, Singapore\u2019s central bank unexpectedly tightened monetary policy, citing forecasts for higher inflation .<\/p>\n

In China, producer prises rose at their fastest clip since the series began in 1996, data on Thursday showed.<\/p>\n

In Australia, a drop in employment figures and remarks from a central bank official about laggardly wages haven\u2019t derailed a buildup of recent market bets on rate hikes beginning next year.<\/p>\n

Swaps markets have priced in about 90 basis points of rate rises by the end of 2023 despite the Reserve Bank of Australia insisting any hikes before 2024 are unlikely.<\/p>\n

Currency markets were fairly quiet on Thursday after the dollar\u2019s overnight drop – which was its steepest fall on the euro in five months.<\/p>\n

The euro was steady at $1.1591 in Asia while sterling, the Australian dollar and the New Zealand dollar held onto Wednesday gains – as did the Chinese yuan.<\/p>\n

The Singapore dollar touched a three-week high.<\/p>\n

In commodities on Thursday oil futures steadied, hovering comfortably above $80 per barrel, with U.S. crude at $80.55 a barrel and Brent at $83.32. [O\/R]<\/p>\n

Gold held overnight gains at $1,789 an ounce. [GOL\/]<\/p>\n

The 10-year Treasury yield sat at 1.5525% after falling three bps overnight and the two-year yield eased marginally to 0.356% after rising 1.8 bps overnight.<\/p>\n

Bitcoin rose 1.5% to $58,550, its highest level since May.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

SINGAPORE (Reuters) – Asian stock markets rose, the dollar eased and longer-dated bonds rallied on Thursday as investors reckoned on inflation bringing forward rate hikes […]<\/p>\n","protected":false},"author":3,"featured_media":122873,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"\nStocks up, dollar squeezed as inflation pulls forward rate hike bets - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/stocks-up-dollar-squeezed-as-inflation-pulls-forward-rate-hike-bets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stocks up, dollar squeezed as inflation pulls forward rate hike bets - Fin2me\" \/>\n<meta property=\"og:description\" content=\"SINGAPORE (Reuters) – Asian stock markets rose, the dollar eased and longer-dated bonds rallied on Thursday as investors reckoned on inflation bringing forward rate hikes [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/business\/stocks-up-dollar-squeezed-as-inflation-pulls-forward-rate-hike-bets\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-14T03:31:24+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/10\/Stocks-up-dollar-squeezed-as-inflation-pulls-forward-rate-hike-bets.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/business\/stocks-up-dollar-squeezed-as-inflation-pulls-forward-rate-hike-bets\/\",\"url\":\"https:\/\/fin2me.com\/business\/stocks-up-dollar-squeezed-as-inflation-pulls-forward-rate-hike-bets\/\",\"name\":\"Stocks up, dollar squeezed as inflation pulls forward rate hike bets - 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