Shares are falling, bonds are faltering with Fed Taper in focus: Markets Wrap | MCUTimes

Shares are falling, bonds are faltering with Fed Taper in focus: Markets Wrap

(Bloomberg) Shares fell after the Federal Reserve signaled that a decision to reduce its massive bond buying program could be made in 2021. Treasuries and the dollar had changed slightly.

The S&P 500 extended losses to another day after minutes from the Fed’s July rally showed that most officials agreed they could start declining this year as they hit their inflation target and were closer to reaching their standard of progress in reducing unemployment.

“The report reflects a Fed that is poised to accelerate its conical timeline to perhaps the next few months,” said Sean Bandazian, an investment analyst at Cornerstone Wealth. “There is still reason to believe that we will see volatility in all areas of the market with high sensitivity to interest rates.”

More comments:

“Fed downsizing is clear in training camp mode, with Jackson Hole likely to be a preseason match, and either the September or most likely November FOMC meeting was the time to announce how they will withdraw the stimulus,” wrote Edward Moya, senior market analyst at Oanda. “It is clear from the minutes that the Fed is not ready to start declining yet, but they are inclined to publish by the end of the year,” said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance. “While the Fed minutes reveal more conviction in terms of starting to decline this year, they highlighted that there is no link between declining and interest rate hikes,” wrote Mike Loewengart, Chief Investment Officer at E * Trade Financial.

Earlier Wednesday, St. Louis Fed President James Bullard said he would like to see the downsizing of the asset buying program carried out in the first quarter of 2022. Several other officials, including Robert Kaplan of Dallas and Esther George of Kansas City, have urged the central bank to start removing the stimulus so soon as in the September meeting. President Jerome Powell and Vice President Richard Clarida have suggested that they would like to see further progress before considering a step to slow down.

Among the company’s highlights, Target Corp. fell after retail sales growth slowed in the second quarter, suggesting that the increased consumer demand initiated by the pandemic may be declining. Lowe’s Cos. Leaped when the home improvement giant raised its year-round forecast.

Elsewhere, oil fell below $ 65 a barrel. Barrel for the first time since May 24, when new waves of Covid-19 threatened the demand for fuel.

Read: CME refuses to report that it made a $ 16 billion takeover bid for the CBOE

Here are some events to see this week:

Bank Indonesia’s interest rate decision and Governor Perry Warjiyo briefing ThursdayUS. first unemployment claims, leading index Thursday

Some of the key movements in markets:

Equities

The S&P 500 fell 1.1% from 1 p.m. 16:00 in New York. Nasdaq 100 fell 1% Dow Jones Industrial Average fell 1.1% MSCI World index fell 0.6%

Currencies

The Bloomberg Dollar Spot Index was slightly changed The euro was slightly changed to $ 1.1713 The British pound rose 0.1% to $ 1.3758 The Japanese yen fell 0.2% to 109.78 per pound. Dollar

Bonds

The yield on 10-year government bonds rose a basis point to 1.27% Germany’s 10-year yield fell a basis point to -0.48% The UK’s 10-year yield was slightly changed by 0.57%

Raw materials

West Texas Intermediate crude fell 2.5% to $ 64.90 per barrel. Barrel Gold futures were slightly changed

More stories like this are available at bloomberg.com

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