Markets have traded sideways ahead of today’s FOMC Meeting at which a rate hike is fully priced in. Stocks, FX and commodities have all been stuck within familiar ranges and this seems likely to remain the case until the Fed meeting. Bond markets have also been steady.
In terms of data, US consumer confidence surged to an 18-year high in September, 138.4 from an upwardly revised 134.7 in August, with households growing more upbeat about the strength of the labour market and pointing to sustained strength in the economy, despite the ongoing trade dispute between the United States and China. The Richmond Fed Mfg Index came in well above expectations, at 29 (vs. expectations of 22), while the House Price Index came in, in line with consensus, at 0.2% for August.
Things warm up on Wednesday, beginning with the NZ August Trade Balance, but with the main event of the week coming during the US session, with the FOMC Meeting, at which – as I said – a hike is fully priced in, but the market will be playing closer attention to Jerome Powell’s statement and his take on the likelihood of a December hike and also the realignment of the Donald Trump plot, which will ultimately define the direction of the markets over the next few sessions. A couple of hours on from the Fed, early Thursday, the RBNZ Interest Rate Decision will be delivered with no change expected – and the focus, once again, will be on the Press Conference
|INDICES / COMMODITIES|