Trader: Inflation Has Not Derailed September Rate Cut, Next Week Will Be Extremely Busy
Jinse Finance reported that after the release of the PCE data, the Federal Reserve is still expected to cut interest rates at its September 16-17 meeting. Michael Lorizio, head of U.S. rate trading at Manulife Investment Management, said: "The PCE has further reduced the risk of a September rate cut being derailed. At least from this perspective, the inflation component will not play any role in lowering the probability of a September rate cut." Long-term bond yields rose on Friday as traders closed positions ahead of the long weekend and rebalanced portfolios at the end of the month. Some interest rate hedging may also have impacted the market, and it is expected that after many people return from summer vacation next week, the corporate bond market will rebound. Lorizio said: "We are going to have a very busy week... The primary market and all spread product markets will fully return, especially the corporate bond market." Next Friday will also see the release of August employment data, which could be a key factor in determining the Federal Reserve's near-term policy. (Golden Ten Data)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
This Energy Stock Proves That AI Data Center Demand Is Still Surging -- Barrons.com
Update: Transocean Shares Rise After $80 Million Drillship Contract for Work in Equatorial Guinea
Daily Roundup of Key US Economic Data for Sept. 15
LVMH drops 37% this year; once Europe's largest market cap stock, now out of the top ten
On Tuesday, LVMH's stock price fell by 2.6%, reducing its market value to 201 billion euros (approximately $232 billion), slightly below L'Oréal, and marking its exit from Europe's top ten companies for the first time since 2017. LVMH's share price has dropped 37% this year, returning to levels last seen when global stores were closed due to pandemic lockdowns. As luxury demand declines, several investment banks have downgraded LVMH’s rating.
