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On January 14th, the Bank of Japan announced it will hold a market operations meeting on February 26th. The meeting will discuss recent market dynamics, central bank operations, liquidity in the Japanese government bond market, and money market conditions. Given the current weakening yen, this meeting announcement has attracted market attention. Analysts at the US financial website InvestingLive pointed out that this meeting is a technical one, not a formal meeting to determine the direction of monetary policy. The market operations meeting will review the Bank of Japans bond-buying framework, including the size, frequency, and maturity structure of Japanese government bond purchases, as well as money market operations such as repurchase agreements and collateral terms. Although such meetings do not directly adjust interest rates or policy guidance, adjustments to the details of actual operations can convey important market signals. For example, adjusting the purchase volume of bonds with specific maturities could affect the yield curve and change market expectations regarding the central banks tolerance for rising long-term interest rates. Historical experience shows that fine-tuning at the operational level often precedes adjustments to overall policy. Given the current pressure of rapid yen depreciation, analysts suggest that if the Japanese authorities decide to intervene in the market, they may not wait for this meeting six weeks later. The technical discussions at this meeting will provide a window into the central bank’s strategies for dealing with market volatility, but should not be over-interpreted as a precursor to a policy shift.On January 14th, the State Council Taiwan Affairs Office held a regular press conference. The Straits Exchange Foundation (SEF) previously stated that cross-strait relations in 2026 are highly uncertain, but it will still make every effort to promote dialogue between the two sides, and even between the two organizations (the Association for Relations Across the Taiwan Straits (ARATS) and the SEF), but only on the premise of no pre-existing political conditions and on the basis of consensus among the people of Taiwan. What is the spokespersons comment? Spokesperson Zhu Fenglian stated that if cross-strait relations are uncertain, the fundamental reason is that the DPP authorities stubbornly adhere to their "Taiwan independence" separatist stance and constantly collude with external forces to conduct provocative actions for "independence." The solution is certain: peace, development, exchange, and cooperation are the mainstream public opinion on the island and the common aspiration of compatriots on both sides of the strait. As long as the "1992 Consensus," which embodies the one-China principle, is acknowledged, the two organizations can restart dialogue and communication mechanisms, and cross-strait relations can return to the correct track of peaceful development.On January 14th, the State Council Taiwan Affairs Office held a regular press conference. According to foreign media reports, the United States and Taiwan are close to reaching a trade agreement, with TSMC to invest in and build at least five more semiconductor plants in the US. People and media on the island have questioned the DPP authorities use of investment in exchange for tariffs, suggesting it will lead to the relocation of elite semiconductor production capacity to the US, turning TSMC into "US TSMC." What is your comment on this? Spokesperson Zhu Fenglian stated that the so-called agreement is an economic plunder of Taiwan by the US using high tariffs as a means, a scheme to bleed Taiwans industries dry. This not only exposes the USs self-serving "America First" nature but also reveals its sinister intention to use Taiwan as a pawn. Faced with blatant bullying and plunder by external forces, the DPP authorities not only fail to resist but also actively cater to them, using the islands core technological advantages as a pledge of allegiance to external forces. They "kneel before the negotiations even begin" in tariff negotiations, and "cheek on one cheek and offer another" in the face of economic blackmail. The more they negotiate, the more they sell out, ultimately destroying Taiwans economic development prospects and harming the long-term interests of the Taiwanese people.On January 14th, the State Council Taiwan Affairs Office held a regular press conference. Taiwanese media reported that the "KMT-CPC Forum" would be held in Beijing, and that high-ranking KMT officials would travel to the mainland. Could this be confirmed? The Democratic Progressive Party (DPP) questioned whether the KMT had secured its place at the "KMT-CPC Forum" by repeatedly blocking arms purchases and called on the KMT not to cooperate with mainland "united front" propaganda. What is your comment on this? Spokesperson Zhu Fenglian stated that our position is clear: we are willing to work with all political parties, groups, and people from all walks of life in Taiwan, including the KMT, to strengthen exchanges and maintain positive interactions on the common political basis of adhering to the "1992 Consensus" and opposing "Taiwan independence," to jointly promote the peaceful development of cross-strait relations and benefit compatriots on both sides of the strait. If there is any information in this regard, we will release it in a timely manner.Japanese Chief Cabinet Secretary Minoru Kihara: The Bank of Japan is expected to work closely with the government to achieve its 2% inflation target in a stable manner.

US open: Futures fall ahead of Fed minutes

Cory Russell

Apr 08, 2022 11:46

Futures in the United States

Futures for the Dow Jones Industrial Average are down 0.75 percent at 34390.


Futures on the S&P 500 are down 1% at 4480.


Nasdaq futures are now trading at 14582, down 1.64 percent.


In Europe, the FTSE is down -43% at 7560.


At 14100, the Dax is down 2%.


At 3828, the Euro Stoxx is down 2.34 percent.


Find out more about indices trading.


Stocks have taken a knock due to Fed concerns.


Ahead of the FOMC minutes, US markets are expected to begin lower, extending losses from the previous session.


Following increased predictions of a more hawkish Federal Reserve, Wall Street finished lower yesterday and is still under pressure today. In order to reign in soaring inflation, Fed Governor Brainard hinted at higher interest rate rises and a quicker runoff on the balance sheet.


The market is putting in a 76.6 percent chance of a 50 basis point rate rise in May, according to the CME Fed Funds. Rates are expected to be raised by 225 basis points before the end of the year, according to the market.


Yesterday, high-growth tech trailed behind its big counterparts, with the NASDAQ100 losing roughly 2.2 percent. Today, the NASDAQ is expected to underperform once again.


The focus now shifts to the publication of the minutes from the March Federal Open Market Committee meeting. This was the first time the Fed increased interest rates since 2018, and it might provide further insight into the future path of interest rate rises and the pace at which the balance sheet would be decreased.


Separately, reports about Russia continue to dominate the news cycle, pushing up oil prices. New sanctions have been imposed on Russia in response to the war crimes perpetrated by Russian military in Ukraine.


In business news, JetBlue Airways revealed that it has made an unsolicited $3.6 billion proposal to Spirit Airlines in order to provide the four main US airlines more competition.

Where does the S&P500 go from here?

After recovering from its March 15 low of 4140, the S&P500 hit resistance around 4630 and has been moving downward since. The price has fallen below the 100 SMA, and the MACD has crossed to the negative side, giving sellers optimism for further downside.


Support is indicated at 4425, the 50 SMA, and the high of March 3. A break below this level might go to 4345, the high from March 11 and the low from March 17. Any rebound, on the other hand, would have to surge above the 100 SMA at 4535 in order to reach 4630, the March high.