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On June 18, the Personal Insurance Supervision Department of the Financial Supervision Administration issued a letter to personal insurance companies on the supervision of dividend levels for participating insurance companies, requiring insurance companies not to deviate from the actual assets, liabilities and investment income of the accounts, arbitrarily raise the dividend level to engage in "involutionary" competition, and disrupt the order of the personal insurance market. The regulatory authorities will strengthen data monitoring, and will take regulatory measures such as regulatory interviews, rectification orders, and rating deductions for those who violate regulatory requirements.Germanys DAX30 index closed at 23,325.30 points, down 130.17 points, or 0.55%, on Wednesday, June 18; Britains FTSE 100 index closed at 8,843.47 points, up 9.44 points, or 0.11%, on Wednesday, June 18; Frances CAC40 index closed at 7,656.12 points, down 27.61 points, or 0.36%, on Wednesday, June 18; The Stoxx 50 index closed at 5,268.45 points, down 20.23 points, or 0.38%, on Wednesday, June 18; the Spanish IBEX 35 index closed at 13,914.81 points, up 6.61 points, or 0.05%, on Wednesday, June 18; and the Italian FTSE MIB index closed at 39,412.00 points, up 24.78 points, or 0.06%, on Wednesday, June 18.German Chancellor Merz: Hope to reach an agreement on US-EU tariffs in the next few days.The winning rate of the U.S. Treasury bond auction for the four weeks ending June 18 was 4.06%, compared with the previous value of 4.08%.U.S. Treasury auction for the four weeks ending June 18 - the bid-to-cover ratio was 3.15, compared with 3.22 in the previous period.

USD / JPY Strikes Above 136.20 As Fed Rate Increase Worries Return

Daniel Rogers

Mar 02, 2023 16:07

 

 

The USD / JPY pair is battling in the Asian session to maintain its auction above 136.40, while the downside looks to be supported around 136.00. The asset is expected to continue rising and surpass the 136.40 resistance mark as investors foresee the Federal Reserve (Fed) raising interest rates to strengthen its defense against persistent inflation.

 

Following a down day on Wednesday, S&P500 futures recorded modest gains during the Asian session, signaling a minor improvement in investors' risk appetite. Despite this, the market as a whole is very risk adverse. The spread of the US Dollar Index (DXY) is expected to narrow after a period of chaotic swings.

 

It indicates that the Federal Reserve's (Fed) officials' hawkish stance has revived US Treasury prices.

 

Raphael Bostic, President of the Atlanta Fed, predicted that the central bank would increase the terminal rate to a level of 5.00% to 5.25% in view of the Consumer Price Index's (CPI) enduring nature. The Fed policymaker also thinks the central bank will continue to have a high final rate after 2023. Additionally, Fed Chief Jerome Powell has reaffirmed that an early rate cut could have disastrous consequences for the inflation scenario.

 

It is clear that a future rise in the price index is expected after Wednesday's release of the US ISM Manufacturing PMI. The New Orders Index and Manufacturers' Prices Paid were able to show that the inflation scenario is getting more complicated despite the February PMI figures' failure to wow the market. Figures increased to 47.0 from 43.7 anticipated and 42.5 earlier published, indicating a strong order book. The Manufacturing Price Paid increased to 51.3 from 45.0, as opposed to the average forecast of 45.0, and from 44.5 in the previous report, suggesting that the Producer Price Index (PPI) may soon show a surprise increase.

 

On the Tokyo front, the Japanese Yen is being impacted by a string of dovish remarks from Bank of Japan (BoJ) officials. Following dovish remarks from BoJ Governor-nominee Kazuo Ueda and BoJ Deputy Governor Ryozo Himino, board member Junko Nakagawa also considered the present monetary policy appropriate. "An expansionary strategy is absolutely essential for maintaining the economy and increasing earnings," he said.


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