• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

Volatility spikes as Fed aims to reduce balance sheet

by onlinecitizen
06/04/2017
in Finance
Reading Time: 2 mins read
0

Image from shutterstock

By Margaret Yang, CMC Markets
A stock market pullback was seen last night as the Federal Reserve officers expressed their willingness to begin the balance sheet cut later this year in the FOMC meeting minutes released last night, triggering broad profit-taking activities within risky asset classes. Nasdaq lost 0.58% and S&P 500 index closed 0.31% lower. The Dollar index eased intra-day gain and closed flat at around 100.30 area. The “risk-off” sentiment is likely to have an impact on Asian markets today.
The Fed built up its eye-watering S$4.5 tn worth of bond and Mortgage-backed securities portfolio during the financial crisis. Probably, it is now the time to slowly unwind its portfolio as economic growth picks up momentum and the jobs market is near full employment. This expectation, amidst a rising interest rate cycle, would continue to push Federal fund rates higher and strengthen the US dollar in the longer term.
Today, the markets will be watching the first meeting between the US and Chinese leaders in Florida, or what people have called the “Xi-Trump summit”. This meeting is probably the most important US-China summits in decades, and it will have significant impact on global trade and security. Chinese media described this meeting to be ‘historical’, and it will give future directions to “Sino-US” relations in the new era.
Some key topics include trade, currencies and the issues with North Korea. The markets have their focus on, and are also nervous about these topics ahead of this summit. Trump’s protectionism and Xi’s strong diplomatic stance could rub out sparks and potentially surprise the market. However, the chance of that happening is relatively small as China will ensure the summit between the two leaders is “a complete success”.
US S&P 500 –Cash

Margaret Yang Yan, CFA, is a market analyst for CMC Markets Singapore.
 

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Family of student killed in accident involving retired police officer, calls for transparency from Indonesian police
Indonesia

Family of student killed in accident involving retired police officer, calls for transparency from Indonesian police

04/02/2023
【财政预算案2021】2020年预算赤字达649亿元 占国内生产总值13.9%
AFP

China’s mega-rich move their wealth, and partying, to Singapore

04/02/2023
2024 Olympic torch relay to start in Marseille
AFP

2024 Olympic torch relay to start in Marseille

03/02/2023
India’s Adani shares plunge again after stock sale cancelled
AFP

India’s Adani denies rise due to Modi as shares fall again

03/02/2023
TotalEnergies says Adani exposure ‘limited’ at US$3.1 bn
AFP

TotalEnergies says Adani exposure ‘limited’ at US$3.1 bn

03/02/2023
India’s finance minister says markets ‘well regulated’ after Adani storm
AFP

India’s finance minister says markets ‘well regulated’ after Adani storm

03/02/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Latest posts

Family of student killed in accident involving retired police officer, calls for transparency from Indonesian police

Family of student killed in accident involving retired police officer, calls for transparency from Indonesian police

04/02/2023
【财政预算案2021】2020年预算赤字达649亿元 占国内生产总值13.9%

China’s mega-rich move their wealth, and partying, to Singapore

04/02/2023
2024 Olympic torch relay to start in Marseille

2024 Olympic torch relay to start in Marseille

03/02/2023
India’s Adani shares plunge again after stock sale cancelled

India’s Adani denies rise due to Modi as shares fall again

03/02/2023
TotalEnergies says Adani exposure ‘limited’ at US$3.1 bn

TotalEnergies says Adani exposure ‘limited’ at US$3.1 bn

03/02/2023
India’s finance minister says markets ‘well regulated’ after Adani storm

India’s finance minister says markets ‘well regulated’ after Adani storm

03/02/2023
A man can be sentenced to death by a testimony of another, but CPIB finds it hard to prosecute with mountain of evidence and self-confession?

A man can be sentenced to death by a testimony of another, but CPIB finds it hard to prosecute with mountain of evidence and self-confession?

03/02/2023

Myanmar junta imposes tough new measures on resistance strongholds

03/02/2023

Trending posts

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

by Yee Loon
30/01/2023
25

...

They have done a fine job of confusing us about the jobs situation

They have done a fine job of confusing us about the jobs situation

by Augustine Low
01/02/2023
47

...

Adani’s brother runs SG company and registers as director with local ID

Adani’s brother runs SG company and registers as director with local ID

by Correspondent
03/02/2023
15

...

Singapore warns slower economic growth in 2023

Less than 1 in 10 jobs created in first three quarters of 2022 went to Singaporeans?

by Leong Szehian
28/01/2023
69

...

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

by Yee Loon
26/01/2023
24

...

Excessively charging for an essential need, and calling it affordable because people still can pay for it?

by Terry Xu
31/01/2023
40

...

April 2017
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
« Mar   May »

The Online Citizen is a regional online publication based in Taiwan and formerly Singapore’s longest-running independent online media platform.

Navigation

  • Editorial
  • Commentaries
  • Opinion
  • Politics
  • Community

Support

  • Contact Us
  • Letter submission
  • Membership subscription

Follow Us

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Fact Checking Policy
  • Privacy Policy

© 2022 - 2023 The Online Citizen Asia

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2022 - 2023 The Online Citizen Asia

wpDiscuz