| Good morning. Fed decision day, signs of stabilization in China, key U.S. ruling on Covid shots. Here's what's moving markets. The Federal Reserve is expected to signal scaling back asset purchases later this year, with scrutiny also on forecasts that could reveal growing internal pressure to raise interest rates in 2022. It's all but certain to hold rates near zero after a two-day policy meeting and keep buying bonds at the current $120 billion monthly pace. The panel will release a statement at 7 p.m. London time plus updated quarterly estimates, including its dot plot of rate projections. Chair Jerome Powell will brief reporters 30 minutes later. Earlier this morning, the Bank of Japan held its key stimulus tools and negative interest rate in place. The next biggie is the Bank of England, due mid-day tomorrow. The U.S. Food and Drug Administration may decide today whether to recommend Covid-19 booster shots made by Pfizer and BioNTech, two people familiar with the matter said, the latest step in a process that could open the door to extra shots for Americans in the coming days. The country is also expected to announce the donation of 500 million vaccines. Most Asian stocks fell and U.S. futures fluctuated Wednesday after indebted developer China Evergrande Group reached an agreement on some interest payments and the Chinese central bank boosted a cash injection. The People's Bank of China pumped 120 billion yuan ($18.6 billion) into the banking system through reverse repurchase agreements, resulting in a net injection of 90 billion yuan. The need to calm market jitters is pressing amid losses in China-related equities worldwide over recent days amid concern over Evergrande's debt woes. The U.K. is exploring joining NAFTA-successor USMCA, an existing free-trade agreement between the U.S., Mexico and Canada, a person familiar with the nation's thinking said. Prime Minister Boris Johnson indicated Tuesday that he doesn't expect to secure the free-trade pact he seeks with the U.S. before the next U.K. general election due in 2024. A trade deal with the U.S. was billed as one of the prizes of Brexit, so Johnson is under pressure to prove the biggest upheaval in British foreign policy in 50 years was worth it. European stock futures are pointing higher as Chinese markets caught up with Monday's global declines, following the country's four-day mid-autumn festival weekend. The earnings agenda holds French engineering firm Alten and U.K. instruments maker Halma. The IPO of French cybersecurity firm Exclusive Networks, worth up to 416 million euros, is expected to price today. Ahead of the Fed decision tonight, U.S. home sales and Euro-region consumer sentiment are also due. This is what's caught our eye over the past 24 hours. Stock bulls will be hoping the S&P 500 Index bounces quickly back above its 50-day moving average, because the next longer-term technical support levels are quite a bit away. The U.S. stock benchmark is about 6% above its 200-day moving average and 9% above the first line of Fibonacci support stemming from its pandemic rally to all-time highs. The gauge closed below the closely watched 50-day moving average Monday, which opened up the door to further downside, and a tenuous rebound fizzled Tuesday in a choppy session. Things are looking a bit brighter today, after China markets reopened from a two-day holiday. Shares fell less than feared amid plans for an interest payment by China Evergrande Group and signs of support from the country's central bank. But to judge whether or not the weakness in U.S. stocks is over, we'll have to wait to see the market reaction to the Federal Reserve's plans for support, due later today.  Cormac Mullen is a cross-asset reporter and editor for Bloomberg News in Tokyo. Like Bloomberg's Five Things? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. | 
Post a Comment