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US bonds and shares are easing ahead of the Fed meeting


US government bond prices eased, և Wall Street stocks were unable to rise above all-time highs last week as traders were cautious ahead of a two-day meeting of the US Federal Reserve starting on Tuesday.

After A. rally Yields on 10-year treasury bonds rose 0.02 percentage points to 1.485 percent last week as investors searched the US Federal Reserve for high inflation to support the financial markets during the epidemic.

The Wall Street S&P 500 Index fell 0.3 percent lower in early trading on Friday, after hitting a new record high on Friday. The technology-focused Nasdaq Composite Index rose 0.1 percent. The Stoxx Europe 600 also gained 0.1 percent, marking a new high of closing.

The Fed is expected to maintain monthly purchases of its $ 120 billion bonds, which have eased the financial conditions of companies and households since March last year.

These asset purchases, followed by interest rates in Europe and the UK, have reduced government bond yields, reduced corporate borrowing costs, and stimulated more risky assets such as stocks.

However, following the rapid recovery of the US economy fed by coronavirus vaccines և Following President Biden’s massive stimulus plans, some analysts see the Fed’s policy makers making their predictions about raising the first post-epidemic rate.

“We expect the Fed to update its growth outlook and significantly revise its inflation forecast,” said Tiffany Wilding, an American economist at Pimko Bond Investment. “We believe that the majority of Fed officials will also bring back forecasts for the first rate increase by 2023. [from 2024]»

Fed Vice President Richard Clarida last month called: as a discussion for the US Federal Reserve on asset reduction recovery accelerated

“We look forward to more talk of a future downturn,” said Grace Peters, an investment strategist at JPMorgan. “With the real pelvis, which will start early next year.”

The FTSE All-World Emerging Stock Market Index has been at an all-time high over the weeks as investors take a forward-looking approach to long-term monetary policy.

The US consumer price headline is a signal 5 percent in May for 12 months. Fed Chairman Ay Powell claims that the rise in prices is a temporary consequence of the reopening of the US economy after the coronavirus has stopped. “But others are concerned that inflation is more structural,” said Marco Pirondini, Amundi’s chief US stock officer. “I would say it is 50-50 on both sides.”

The rise in the price of used cars, trucks, after the global shortage of semiconductors reduced the production of new cars, amounted to about a third of the increase in the CPI in May, according to the Bureau of Labor Statistics.

But US wages can also “grow more steadily,” Pyrondini said after Biden Signed: An executive order to raise government salaries in late April, putting pressure on the private industry to raise wages.

The dollar index, which measures the US currency against trading partners, fell 0.1 percent. The euro rose 0.2 percent to $ 1,212 against the dollar. Sterling rose 0.1 percent to $ 1,411. The dollar index has risen 0.7 percent this year, and currency traders are also waiting for a clearer picture of the future course of US monetary policy.

Brent crude, an international oil benchmark, rose 1 percent to $ 73.39 a barrel.



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