Home Business A modest pie on the menu of central bankers Reuters

A modest pie on the menu of central bankers Reuters


© Reuters. PHOTO FILE: Worker displayed in the wall of the Reserve Bank of Australia (RBA) headquarters in downtown Sydney, Australia, March 1, 2016. REUTERS / David Gray


A look at the coming day in the markets of Sujata Rao.

First Sweden, now Australia. Two central banks, which said they saw no need to raise rates by 2023 or 2024, ate a modest pie for the week.

Australia on Tuesday raised rates by 25 basis points to 0.35%, which was higher than rates on the markets, and confirmed that there would be more in the coming months. It has also doubled inflation forecasts for this year. This came after Sweden raised rates by 25 bp last week. and noted more at future meetings.

It just shows how much inflation has surprised up. And as the blockade in China is still ongoing, there may be no peace of mind for supply chain problems that were one of the causes of the price explosion.

The RBC report shows that global congestion in ports is deteriorating, the cost of marine insurance continues to rise, and one-fifth of the world’s container fleet is stuck in various ports. Oh.

The next meeting of the Federal Reserve, which will begin later today and end on Wednesday, will almost certainly raise rates by 50 basis points and announce that the reduction in balance will begin next month.

On Monday, for the first time since 2018, the profitability of 10-year U.S. Treasuries exceeded 3%.

Interestingly, however, the jump in yields declined to real inflation-adjusted real yields by 17 bp, taking a 10-year break-even point – an indicator of future inflation expectations – below 3%. Could it be that markets are convinced that an aggressive Fed will be able to curb inflation and inflation expectations?

Stock markets in Europe are opening stronger this morning, and futures on US stocks have also risen. It came after a crash on Monday caused by a fat finger of a Citi trader.

Troubled traders in Asia sent Alibaba (NYSE 🙂 cheaper stocks and bonds after media reports that the Hangzhou authorities imposed curbs on a man named Ma. They recovered after it turned out it wasn’t Jack Ma from Alibaba.

Highlights that should provide more market direction on Tuesday:

– Inflation in South Korea has reached a 13-year high

– German unemployment in April

– Eurozone CPI March (36.2 February)

– The Ministers of Energy of the European Union are holding an emergency meeting to discuss the energy supply of the unit,

– ECB President Christine Lagarde, Governor of the Central Bank of Norway Ida Volden Bache

– Informal video conference of EU economy and finance ministers.

– Orders for factories in the US / durable goods / push jobs

– European revenue: BNP Paribas / Telenor / Deutsche Post / Uniper / BP / Osram / JD Sports / telecom Italia

– US Revenue: DuPont (NYSE :), Thomson Reuters (NYSE :), Pfizer (NYSE :), Estee Lauder SYP Global (NYSE :), Elevator (NASDAQ :), Starbucks (NASDAQ :). Herbalife (NYSE :), AIG (NYSE :), Prudential

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