ACTIONS news, forecasts, expectations 2022 - page 58
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US stock indices down 1.4-2.8%
15 minutes ago (14.02.2022 08:44)
"Focus of the week - today's EXTREME Fed meeting
Fed announces emergency meeting after US inflation surge
The US Federal Reserve will hold an unscheduled meeting on Monday, February 14, after statistics for January showed inflation in the world's biggest economy accelerating to a new 40-year record.The Fed's board of governors will meet behind closed doors to discuss future interest rates as well as the level of discount rates at which commercial banks receive loans from the regulator, the agency said ina release on its website.
The Fed's benchmark discount rate is now set at 0.25%, the upper end of the federal funds rate range (0-0.25% per annum). For banks that are not primary dealers with the Fed, dollar liquidity is more expensive at 0.75%.
The reason for calling an unscheduled meeting is not explained by the Fed. But rumours are creeping around the market that the US central bank could go for an emergency interest rate hike to curb inflation which is getting out of control.
The US consumer price index rose by 7.5% year-on-year in January. Inflation accelerated for the 20th month in a row and has beaten Wall Street's forecasts for 9 out of the last 11 months (the market was expecting 7.3%).
The Fed Funds Rate Futures price already laid down a 89% probability that the rate will be increased by 50 basis points at once in March instead of the standard 25bp. Such a doubling, if carried out, would be the first for the US central bank since May 2000.
Furthermore, February rate contracts, which expire before the scheduled meeting, traded at 0.1325% p.a. on Thursday against 0.09% and close to zero at the start of the year.
This means that the market laid almost 30% chance of an emergency rate hike in the US, which hasn't happened since 1979. Although this would be "insanely aggressive", such a scenario cannot be ruled out, says Tim Dye, strategist at SGH Macro.
Fed announces emergency meeting after US inflation surge
The US Federal Reserve will hold an unscheduled meeting on Monday, 14 February, after statistics for January showed inflation in the world's biggest economy accelerating to a new 40-year record.The Fed's board of governors will meet behind closed doors to discuss future interest rates as well as the level of discount rates at which commercial banks receive loans from the regulator, the agency said ina release on its website.
The Fed's benchmark discount rate is now set at 0.25%, the upper end of the federal funds rate range (0-0.25% per annum). For banks that are not primary dealers with the Fed, dollar liquidity is more expensive at 0.75%.
The reason for calling an unscheduled meeting is not explained by the Fed. But rumours are creeping around the market that the US central bank could go for an emergency interest rate hike to curb inflation which is getting out of control.
The US consumer price index rose by 7.5% year-on-year in January. Inflation accelerated for the 20th month in a row and has beaten Wall Street's forecasts for 9 out of the last 11 months (the market was expecting 7.3%).
The Fed Funds Rate Futures price already laid down a 89% probability that the rate will be increased by 50 basis points at once in March instead of the standard 25bp. Such a doubling, if carried out, would be the first for the US central bank since May 2000.
Furthermore, February rate contracts, which expire before the scheduled meeting, traded at 0.1325% p.a. on Thursday against 0.09% and near zero at the start of the year.
This means that the market laid almost 30% chance of an emergency rate hike in the US, which hasn't happened since 1979. Although this would be "insanely aggressive", such a scenario cannot be ruled out, says Tim Dye, strategist at SGH Macro.
We will now try to find a statement on the internet.
https://www.rbc.ru/politics/14/02/2022/6209f7c69a79475757379f84
It was heard on Radio Business FM, business does not care about politics from this side or that side, like me.
If it were not for the foundation trade, I would not give a damn about politics and all the czars, I would grow cabbage...
p.s.
This signal could interrupt a bearish breakfast.
Bullshit
Russian stock market starts the new week with a strong drop
The Russian stock market started today's trading with a strong drop in most blue chips amid negative signals from global capital markets, as well as fears of further escalation of geopolitical tensions around Ukraine. The Moscow Exchange Index was down 4.3% at 3,394.26 points by 07:01 Moscow time, with most blue-chips trading in a 9% negative territory.As of 10:00 Moscow time,the Moscow Exchange Index declined by 3.37% to 3,426.95 points.
TheRTS index fell by 4.53% to 1,403.61 points at the same time.
European stock indices declined at the close of trading on Friday, following the dynamics of the US stock indices, falling for the second session in a row.
US stock indices declined due to a general risk aversion of investors after reports that the US authorities expect Russia's imminent invasion of Ukraine.
Asian equity markets are trading lower today, except for Australia.
US index futures prices are unchanged in the morning.
Oil prices, which on Friday hit new highs since September 2014, continue to rise.
RTS has not gone to the LOW 2022 table
The rhetoric on business FM is positive in the morning, yesterday the bulls beat the bears.
It is a good idea to do a post-weekly analysis of the rhetoric and its impact on the instruments. At least for regular ones, like business FM. After all, radio news is a filtered type of event that has already happened.