Investing.com – Central banks around the world give different answers to the Federal Reserve's interest rate cuts, US stocks are set for lower opening, and some fresh sabbaticals push oil prices back. Here's what you need to know in the financial markets on Thursday, September 19th.
1. Maniacal Monetary Thursday
The cycle of easing global monetary policy continued overnight as Hong Kong cut official interest rates even though the major left its key rate unchanged and hinted that it could be eased at its next meeting in October .
In Europe, strengthening against the dollar and the euro after leaving its key rate unchanged, but changing the way it would calculate the penalty rate for excess bank reserves going forward, a measure that said it would reduce the side effects of negative interest rates on the banks, What you say is likely to be the last interest rate hike in the foreseeable future.
They are about to announce their monetary policy decisions.
The decisions came as the Organization for Economic Co-operation and Development for Global Growth this year, up to 2.9%, the lowest in a decade.
2. Stocks open lower
USA. stock markets should open lower, with late rallies late Wednesday, which left markets slightly altered the day after the Federal Reserve and press conference decisions.
At 6 am ETs were reduced by 51
President Jerome Powell stated during his press conference that the Fed does not expect any significant weakening in the US economy in the near future. This thesis will be tested at 8:30 am ET when it publishes its regular business survey. There will also be a weekly at the same time.
3. Fed to calm the money market again
The Federal Reserve is ready to hold a repo overnight to ease conditions in the US money market for a third working day.
As it did on Wednesday, the Fed will offer a maximum of $ 75 billion to banks in overnight funds. Banks had asked for $ 80 billion at Wednesday's auction, which means there was another fight for the open-market overnight fund margin, bringing the Fed's percentage to over 2.30%, above the Fed's old target range of 2% -2.25%.
There is still no consensus on the long-term significance of this liquidity shrinkage. If, as many have argued, the causes are largely technical and short-lived, overnights should logically return to their target level within days. If they don't, then the Fed may be under pressure to start buying assets again.
4. Microsoft (NASDAQ 🙂 accumulates dividend redemption
Microsoft (NASDAQ 🙂 shares are set to shed spotlight after the company and expand the volume of its stock buyback program after the closing bell on Wednesday.
The board raised its quarterly dividend by 11% to 51c, although this still leaves a tacit annual dividend income of only 1.5% below the average of 1.9% for the S&P 500.
the company has increased its open-stock buyback program by another $ 40 billion, or just under 4% of its market capitalization.
5. Oil rises again on Tweets of war, Iraq report
Oil prices rose again as tweets, reviving fears of a military conflict in the Persian Gulf, just hours after Saudi Arabia and the US emerged to reduce the risk of war. war
The market was also concerned by reports that Saudi Arabia had sought to buy millions of barrels of crude oil from Iraq to ensure that the kingdom fulfilled its commitments to its own customers. This is seen as undermining Saudi officials' assertions that they will quickly restore production to what it was before the weekend's attacks on key energy installations.
As of 6am, futures were up 1.7% at $ 59.02 a barrel, while futures were up 2.3% at $ 65.11 a barrel.