By Geoffrey Smith
Investing.com – It is the day of the Fed, and chairman Jerome Powell will have to explain the decisions of his colleagues soon after what is expected to be a weak retail sales number for August. Snowflake’s strong IPO affects stock market sentiment. Facebook (NASDAQ 🙂 gets double-dhammy from the FTC and Kim Kardashian. Yoshihide Suga is the new Prime Minister of Japan, but he is expected to continue most of the old policies. The European Union is going at an even higher price, and a major drop in US prices has led to a spike in oil prices, which takes the market to the wrong spot. Here’s what you need to know in the financial markets on Wednesday, September 15.
1. Fed meeting ends, retail sales slump
The Federal Reserve covers its regular two-day policy meeting, 2PM ET (1800 GMT), and publishes the usual half-hour meeting of Chairman Jerome Powell.
No policy changes are expected, but the Fed will update its economic forecasts, including the first forecast for 2023. Powell is also likely to be pressured into how he wants to maintain inflation reforms in the backdrop of high unemployment and to reduce consumer spending. .
Prior to Powell’s press conference, the US will release its August issue, the first since the increased unemployment benefit plan without replacement in late July. Sales growth slowed to 1.0% from 1.2% in July.
2. Suga gives Yen a two-month high when he takes over as PM
Yoshihide Suga has been confirmed as the new Prime Minister of Japan since July.
As of 6:30 AM ET, the dollar was down 0.4% at 105.05 yen.
Suga has promised economic recovery, but as a 71-year-old man who served for a long time under his predecessor, Shinzo Abe, most analysts expect a continuation of most of Abe’s policies.
The strength of the yen is linked to the general recovery in the Asian-Pacific economy being driven by China. A new 16-month hit overnight, while being even stronger. Analysts said Fed’s chairman Jerome Powell announced that the yen was still up, due to a general weakness in the dollar, with the Fed adopting greater tolerance of inflation in the future.
3. Stocks set to expand profits as snowflake maintains mood; Double-damned for facebook
The US stock markets showed no signs of allowing the Fed meeting to receive a strong rebound following last week’s volatility. Following a strong IPO pricing for cloud software company Snowflake, they are set to open for a third straight day with all three major index futures.
As of 6:30 am, the contract was up 136 points or 0.5%, while the contract was up 0.6%.
Despite some notable single-stock losses: Facebook (NASDAQ 🙂 stock was down 1.4% after a report that the Federal Trade Commission was preparing for an antitrust investigation led by Kim Bardashian of its Instagram platform There were reports of mass boycott and other high-profile celebrities and influencers.
Boeing (NYSE:) stock was down 0.1% after 737 damaging house reports. It was severely criticized for cutting corners to certify the aircraft.
4. Europe clamps down on fossil fuels
The European Union’s top bureaucrat unveiled plans to cut carbon dioxide emissions and sharply cut the plan, mainly in the Union’s speech on how Europe should overcome the epidemic.
The EU is now aiming for a 55% reduction in CO2 emissions from the 1990 baseline to 2030, instead of the previously targeted 40% reduction. This means that there is a more aggressive timetable for phasing out fossil fuels from the electricity and transportation value chains, and almost certainly, Europe’s trading program has higher prices.
Stricter environmental regulations are also a potential precursor to attempting to impose a carbon border tax on imports in the long term, a way for business partners to tie market access to their own environmental performance.
5. Oil prices rise on US inventory plunge
According to a report by US Petroleum Companies, oil prices have fallen sharply after a surprising and sharp drop by US petroleum companies, as the market incorrectly stepped up.
As of 6:40 AM ET, futures were up 2.2% at $ 39.13 per barrel, while the international benchmark contract was up 2.0% at $ 41.34.
US raw material reserves are estimated to have fallen by 9.5 million barrels last week, expecting an increase of 2.0 million barrels. If corroborated by 10:30 pm ET, that could allay some nasty fears about a staggering global fuel demand.