U.S. Federal Reserve Chairman Jerome Powell speaks at a press conference after the Federal Open Market Committee (FOMC) meeting at the Fed headquarters in Washington, DC, on June 14, 2023.
Drew Angler | Getty Images News | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see?You can subscribe here.
What you need to know today
Bank of Japan turns to influence
The Bank of Japan finally abandoned the world’s last negative interest rate regime. The Bank of Japan announced on Tuesday it would raise interest rates for the first time in 17 years. How it will impact global markets remains to be seen. Bank of America – one of those predicting the BOJ’s move – only expects a “limited” immediate impact globally because interest rate decisions are already priced in.
Nvidia shares rise
shares Nvidia The U.S. chip giant aims to expand its share of the $250 billion data center market, Chief Executive Jen-Hsun Huang said, and the company’s shares closed up 1%. “What’s unique about us is that we’re the only chip company that I believe can create its own market,” he told an analyst conference. His comments came a day after the company unveiled its next generation of artificial intelligence chips.
Kuwait Petroleum Company CEO talks energy needs
The CEO of Kuwait Petroleum Company said that by 2050, global energy demand will exceed population growth. “This means we will need higher energy intensity from the world’s population,” Shaikh Nawaf al-Sabah told an energy conference. The meeting contradicted predictions that demand would peak in 2030.
(PRO) UBS Global Stock Select
UBS has unveiled its high-conviction global stock picks in Europe and Asia, with one stock offering up to 90% upside. It selected 32 buy recommendations that “are expected to attract and enhance” European investors’ portfolios. For Southeast Asia, the bank picked stocks such as oil producer PTTEP and conglomerate SM Investments.
bottom line
The final step in the fight against inflation is proving difficult for the Fed.
most recent list Worrying economic data points to the persistence of inflation in the broader economy.
Torsten Slok, chief economist at Apollo Global Management, said, “The Fed’s inflation target is 2%, and the bottom line in the inflation discussion is that inflation has started to hit 3%. % is trading sideways, which is a problem for the Fed.” One note.
The Federal Open Market Committee is likely to use this week’s policy meeting to discuss whether inflation continues to cool or whether progress has stalled.
While the central bank is widely expected to keep interest rates on hold, investors will scrutinize any clues about the timing of future rate cuts.
In a CNBC Fed survey, half of the respondents said the biggest risk was that the Fed would cut interest rates too late, while 46% were worried that the Fed would cut interest rates too early.
Still, persistent high inflation is considered the biggest risk to the economic expansion.
Despite the latest wave of hot inflation data, market observers still expect the Fed to stick with its third rate cut.
“Starting in June, we will stick to three targets this year,” Joe Kalish, chief global macro strategist at Ned Davis Research, said in a note.
“But it only takes two participants to change their views for the median to drop from three to two.”
About The Author
