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July 27 – According to The Hill, U.S. Senator Bill Cassidy said on Sunday that it “seems unlikely” for Trump to end the war with Iran quickly, and suggested that Trump seek a path to peace from Congress. Cassidy stated, “I do think we need a more comprehensive national discussion about how to move forward. If the president can end this conflict quickly—which seems unlikely, but they still seem to be assuring us that it can be done. Well, that’s fine too.” Cassidy has consistently criticized Trump’s handling of the war, particularly its impact on the cost of living. In May, after failing to retain his Senate seat, Cassidy became one of four Republican senators supporting a war powers resolution that calls for Trump to withdraw U.S. troops deployed in Iran.July 27th - Economists predict that the Bank of England will take a hawkish stance at its meeting this week, but will keep interest rates unchanged, amid renewed Middle East conflict and soaring energy prices. Since the Monetary Policy Committees last meeting in June, the breakdown of the US-Iran ceasefire agreement has pushed global oil prices back to around $100 per barrel, and European natural gas prices have surged to their highest level since the beginning of the conflict. Oil prices could rise further if shipping routes in the Gulf region continue to be disrupted. The UK economy performed better than the Monetary Policy Committees expectations at the beginning of the conflict, with GDP growing by 0.7% in the three months to May. Currently, there are few signs that the energy shock will trigger more persistent price pressures. The CPI has been below expectations for three consecutive months, falling to 2.6% in June. Wage growth, a major source of inflationary pressure, has slowed, and food price increases have also declined. Economists say this will allow the Monetary Policy Committee to keep interest rates at 3.75% at Thursdays meeting, while signaling that the committee is prepared to tighten policy if energy prices rise sharply further, or if a one-off price shock begins to evolve into a more persistent problem.Indonesian Cabinet Secretary: Calls on market participants to remain calm during the transition led by the Central Bank of Indonesia.Japans leading economic indicators rose 0.4% month-on-month in May, down from 0.7% in the previous month.Japans May coincident indicator final reading was 117.9, compared to 118.5 in the previous month.

Asian Shares Fall As Investors Analyze ECB Decisions

Charlie Brooks

Jun 10, 2022 11:14

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Asia-Pacific equities were predominantly lower on Friday morning. Ahead of U.S. inflation statistics, investors are analyzing the European Central Bank's signals for potential interest rate hikes.


At 10:49 PM ET (2:49 AM GMT), the Nikkei 225 was down 1.41 percent, and the KOSPI was down 1.08 percent.


In Australia, the ASX 200 index declined 0.99%.


The Hang Seng Index in Hong Kong fell 0.89 percent.


As a result of the Chinese government's response to a Bloomberg article, the sub-index for Hong Kong-listed IT giants opened 2.9 percent lower. Alibaba (NYSE:BABA) Group Holding Ltd.'s U.S.-listed shares plummeted after the China Securities Regulatory Commission dismissed a Bloomberg report that it was exploring a listing resurrection for the fintech company.


The Shanghai Composite rose 0.10 percent, but the Shenzhen Component rose 0.02 percent.


China's manufacturing factory-gate inflation slowed to its worst pace in 14 months in May, according to previously released data. In May, the producer pricing index (PPI) increased by 6.4% annually, compared to an increase of 8% in April. The reading was the lowest since March 2021. The cooling could be attributable to decreased demand for steel, aluminum, and other industrial commodities as a result of COVID-19-related production disruptions.


Meanwhile, the consumer price index (CPI) increased 2.1% annually.


The European Central Bank (ECB) announced on Thursday that it will prepare a quarter-point increase in interest rates in July and a larger increase in the fall if inflation remains high. Inflation in the eurozone has already surpassed 8 percent.


Short-term U.S. Treasury rates are near all-time highs for 2022 due to a selloff in the euro-area bond market in response to ECB rate rise indications.


The ECB also announced that net asset purchases will halt on July 1, 2022.


Now, investors have moved their attention to U.S. inflation data, due later in the day, for additional hints on the course of interest rate hikes by the U.S. Federal Reserve.


Bloomberg quoted Charles Schwab (NYSE:SCHW) & Co.'s chief financial strategist Liz Ann Sonders as saying, "We've reestablished the inverse relationship between bond rates and stock prices."


"There is a little more discussion, or whispering, about the CPI being a touch above forecasts. Add to that the ECB's more hawkish posture, and you get another bad day."


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