{"id":25232,"date":"2018-02-22T12:28:39","date_gmt":"2018-02-22T06:58:39","guid":{"rendered":"http:\/\/www.icmarkets.com\/blog\/?p=25232"},"modified":"2018-04-16T12:49:37","modified_gmt":"2018-04-16T07:19:37","slug":"thursday-22nd-february-interest-rate-hike-fears-continue-to-drive-down-markets","status":"publish","type":"post","link":"https:\/\/ic-cn-asia.com\/blog\/thursday-22nd-february-interest-rate-hike-fears-continue-to-drive-down-markets\/","title":{"rendered":"Thursday 22nd February: Interest Rate hike fears continue to drive down markets"},"content":{"rendered":"<h4>\n\t<span style=\"font-size:14px;\"><strong>Global Markets:<\/strong><\/span><br \/>\n<\/h4>\n<ul>\n<li>\n\t\t<span style=\"font-size:14px;\">Asian stock markets: Nikkei down 1.18%, Shanghai Composite up 2.03%, Hang Seng down 1.46%, ASX up 0.12%<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">Commodities: Gold at $1324.9 (-0.54%), Silver at $16.400 (-1.31%), WTI Oil at $61.06 (-1.01%), Brent Oil at $64.92 (-0.76%)<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">Rates: US 10-year yield at 2.941, UK 10-year yield at 1.551, German 10-year yield at 0.723<\/span>\n\t<\/li>\n<\/ul>\n<h4>\n\t<span style=\"font-size:14px;\"><strong>News &amp; Data:<\/strong>&nbsp;&nbsp;<\/span><br \/>\n<\/h4>\n<ul>\n<li>\n\t\t<span style=\"font-size:14px;\">(GBP) Public Sector Net Borrowing -11.6B vs -11.5B expected<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">(GBP) Claimant Count Change -7.2K vs 2.3K expected<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">(GBP) Average Earnings Index 3m\/y 2.50% vs 2.50% expected<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">(EUR) Flash Services PMI 56.7 vs 57.7 expected<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">(EUR) Flash Manufacturing PMI 58.5 vs 59.2 expected<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">(EUR) German Flash Services PMI 55.3 vs 56.9 expected<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">(EUR) German Flash Manufacturing PMI 60.3 vs 60.6 expected<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">(EUR) French Flash Services PMI 57.9 vs 59.1 expected<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">(EUR) French Flash Manufacturing PMI 56.1 vs 58.1 expected<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">Japan&#39;s FX Head Asakawa: BOJ Easing Isn&#39;t Designed To Weaken Yen<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">Fed&#39;s Quarles pushes for gradual rate hikes, review of crisis-era bank regulations<\/span>\n\t<\/li>\n<\/ul>\n<h4>\n\t<span style=\"font-size:14px;\"><strong>Markets Update:<\/strong><\/span><br \/>\n<\/h4>\n<p>\n\t<span style=\"font-size:14px;\">Asian markets traded lower today following overnight cues from the Wall Street. The speculation of faster rate hikes in the US dampened risk appetite globally. Nikkei underperformed, as yen strengthened from recent lows against the dollar.<\/span>\n<\/p>\n<p>\n\t<span style=\"font-size:14px;\">While bond proxies have been pacing ASX&rsquo;s declines, the index continues to be supported by good earnings. Chinese markets have defied the trend, and were seen in the green, after returning from the week-long Lunar New Year break.<\/span>\n<\/p>\n<p>\n\t<span style=\"font-size:14px;\">The retreat came after minutes of the Federal Reserve&#39;s last policy meeting showed the usual concerns that inflation might disappoint, but also an expectation of faster economic growth due to fiscal stimulus. Three rate rises are now almost fully priced in for this year, compared to two as recently as December.<\/span>\n<\/p>\n<p>\n\t<span style=\"font-size:14px;\">Yields on 10-year notes touched their highest in four years, and those on two-year paper the highest in nine. The lift in yields provided much needed support to the US Dollar, with the US dollar index up by more than 0.3%. However, against the yen, the dollar lost some value, owing to the yen&rsquo;s perception as a safe haven currency, and investors moving to it.<\/span>\n<\/p>\n<p>\n\t<span style=\"font-size:14px;\">The higher yields pulled down precious metals, especially gold &ndash; given that it now looks ales lucrative investment as compared to GSecs. Negative risk sentiment also continues to contribute to the weaker metals,<\/span>\n<\/p>\n<h4>\n\t<strong style=\"font-size: 14px;\">Upcoming Events:<\/strong><br \/>\n<\/h4>\n<ul>\n<li>\n\t\t<span style=\"font-size:14px;\">09:00 AM GMT &#8211; (EUR) German Ifo Business Climate<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">09:30 AM GMT &#8211; (GBP) Second Estimate GDP q\/q<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">09:30 AM GMT &#8211; (GBP) Prelim Business Investment q\/q<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">12:30 PM GMT &#8211; (EUR) ECB Monetary Policy Meeting Accounts<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">01:30 PM GMT &#8211; (CAD) Core Retail Sales m\/m<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">01:30 PM GMT &#8211; (CAD) Retail Sales m\/m<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">01:30 PM GMT &#8211; (USD) Unemployment Claims<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">04:00 PM GMT &#8211; (USD) Crude Oil Inventories<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">05:10 PM GMT &#8211; (USD) FOMC Member Bostic Speaks<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">09:45 PM GMT &#8211; (NZD) Retail Sales q\/q<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\">09:45 PM GMT &#8211; (NZD) Core Retail Sales q\/q<\/span>\n\t<\/li>\n<li>\n\t\t<span style=\"font-size:14px;\"><a href=\"https:\/\/www.icmarkets.com\/education\/forex-news-and-calendar\/\" style=\"margin: 0px; padding: 0px; border: 0px; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline; color: rgb(0, 0, 0); text-decoration-line: none; outline: 0px;\">&amp;more&hellip;<\/a><\/span>\n\t<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Global Markets: Asian stock markets: Nikkei down 1.18%, Shanghai Composite up 2.03%, Hang Seng down 1.46%, ASX up 0.12% Commodities: Gold at $1324.9 (-0.54%), Silver at $16.400 (-1.31%), WTI Oil at $61.06 (-1.01%), Brent Oil at $64.92 (-0.76%) Rates: US 10-year yield at 2.941, UK 10-year yield at 1.551, German 10-year yield at 0.723 News &hellip; <a href=\"https:\/\/ic-cn-asia.com\/blog\/thursday-22nd-february-interest-rate-hike-fears-continue-to-drive-down-markets\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Thursday 22nd February: Interest Rate hike fears continue to drive down markets<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":25220,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/posts\/25232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/comments?post=25232"}],"version-history":[{"count":2,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/posts\/25232\/revisions"}],"predecessor-version":[{"id":25234,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/posts\/25232\/revisions\/25234"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/media\/25220"}],"wp:attachment":[{"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/media?parent=25232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/categories?post=25232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/tags?post=25232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}