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HomeUncategorizedMarket Watch: Federal Reserve's Communication, TSM's Surge, and HSBC's Strategy Reshaping Investment...

Market Watch: Federal Reserve’s Communication, TSM’s Surge, and HSBC’s Strategy Reshaping Investment Strategies.

Market Watch:-Dow futures contract fell 30 points, S&P 500 futures rose 1 point, and Nasdaq 100 futures rose 14 points.

Federal Reserve speakers discuss interest rate cuts, Taiwan Semiconductor Manufacturing hits new high, and HSBC faces pretax loss as Argentina unit sells.

Fedspeak

Fedspeak remains a significant factor this week, with traders reducing bets on the Federal Reserve’s rate cuts this year due to evidence of a healthy US economy. Expectations for rate cuts this year have risen from 150 basis points to around 60 basis points, despite the Fed’s projected 75 basis points cut. Former Federal Reserve Bank of St. Louis President James Bullard expects three interest rate cuts this year.

TSMC on all-time high

Taiwan Semiconductor Manufacturing (TSM) shares surged to an all-time high on Tuesday, following the US Commerce Department’s $6.6 billion subsidy for an advanced semiconductor plant in Phoenix, Arizona. The chipmaker was also eligible for up to $5 billion in low-cost loans. Taiwan shares jumped 4% to T$817.0, while American Depository Receipts rose 1%, both over 30% higher so far this year. TSMC is a key supplier to technology giants like Nvidia and Apple.

HSBC sell its Argentina unit

HSBC is set to sell its Argentina unit to private financial group Grupo Financiero Galicia for $550 million, causing a $1 billion pretax loss. The bank will also recognize $4.9 billion of historical cumulative foreign currency translation reserve losses. This move is part of a restructuring to focus on key Asian and European markets.

Economic Calendar

  • 6:00  NFIB Small Business Optimism Index
  • 1:00 PM  Results of $58B, 3-Year Note Auction

Must read book about investing – check hereMarket WatchMarket WatchMarket WatchMarket Watch Market Watch Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting Fed Meeting

U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.

Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.

U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.

Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.

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