Chinese stocks in tentative bounce, Fed in no hurry to taper
Asian shares managed a semblance of calm on Thursday as the U.S. Federal Reserve signalled it was in no rush to taper stimulus, though the mood was fragile as investors waited to see if Beijing could stem the recent bloodletting in Chinese shares.
Markets had see-sawed overnight when the Federal Reserve policy statement said "progress" had been made toward its economic goals, seeming to bring nearer the day when it might start tapering its massive asset buying campaign.However, Fed Chair Jerome Powell took a dovish turn by emphasising that they were "some ways away" from substantial progress on jobs.
read more"The difference in tone between the statement and press conference may simply reflect Powell being on the dovish side of the Committee," said JPMorgan economist Michael Feroli."In any event, there are three more job reports before the November meeting, and two more between the November and December meetings," he added. "We continue to expect a December announcement, though we see a risk it could occur in November."
The next Fed meeting is not until late September, offering the market a break from tapering talk.For bonds, the net result was that U.S. 10-year yields eased back to 1.236% after a brief pop higher, leaving them not far from recent five-month lows of 1.128%. headtopics.com
The pattern was the same for the dollar, which edged up on the FOMC statement only to flag on Powell's remarks.That left the euro up at $1.1846 , and above its recent four-month trough of $1.1750.The dollar faded to 109.70 yen , and away from a top of 110.58 early in the week. All of which saw the dollar index dip to 92.236 , off its recent top at 93.194.
In commodity markets, gold remained sidelined at $1,808 an ounce having now spent 17 sessions in a $30 range.Oil prices firmed after data showed U.S. crude inventories fell to pre-pandemic levels, bringing the market's focus back to tight supplies rather than rising COVID-19 infections.
Brent was last off 7 cents at $74.67 a barrel, while U.S. crude lost 4 cents to $72.35.Editing by Ana Nicolaci da CostaOur Standards:More from ReutersSign up for our newsletterSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.Read more: Reuters Top News »
The TMZ Podcast on Apple Podcasts
News · 2021
Fed Says Economy Has Made Progress Toward Its Goals, Teeing Up Bond TaperThe Fed said the economy has made progress toward its goals, and hinted it could start reducing bond purchases later this year LiveLikeAli See the tweets of this hashtag Rest assured you will not regret it👆 Will we see another tapertantrum?
U.S. stock futures mixed as investors weigh up big tech earnings, wait for Fed outcomeStock futures traded mixed ahead of a Fed decision, and after major indexes snapped five-day winning streaks. good
Treasury yields climb ahead of Fed policy decisionU.S. Treasury yields climbed on Wednesday morning, ahead of Federal Reserve's latest monetary policy decision. wow You can recycle this article every month. Also the article about gold surging and dropping is a nice piece for the recycle
European markets set for mixed open as investors digest major earnings, await Fed decision Europ ean markets are set for a muted open on Wednesday amid a busy day for key corporate earnings, while investors await a key policy announcement from the Fed. good
Fed notes improving economy, a step toward easing supportWASHINGTON (AP) — The Federal Reserve said Wednesday that the U.S. economy is strengthening and making progress on the Fed's employment and inflation goals, a small step toward dialing back its ultra-low-interest rate policies. THE LORD GOD has set a day when HE will judge the whole world. EternalBlissInHeaven Yeah but still you can forget about M4A and living wages for you, they said wow
The Fed decision and Chair Jerome Powell's press conference — live updates & analysisThe Federal Reserve will announce its decision from its July 2021 meeting on whether to adjust interest rates or bond purchases. thanks