Live Updates > Live Update Details
2025-09-17 16:03:10
[Global Markets Await the Federal Reserve's Decision, Narrowing Volatility Across Asset Classes] ⑴ Singapore's sharp decline in trade may be difficult to sustain. Maybank economists noted that although non-oil domestic exports fell for the second consecutive month in August, the August manufacturing PMI showed a rebound in overall manufacturing activity. ⑵ The German Finance Ministry is expected to increase its fourth-quarter bond issuance plan. Citi Research predicts an increase of €15 billion, including €12 billion in bonds and €3 billion in Treasury bills. ⑶ UK inflation remained stable at 3.8% in August, with core inflation falling to 3.6% in line with expectations, and services inflation falling from 5.0% to 4.7%. Deutsche Bank believes the data is generally positive, but food inflation, rising to 5.1%, continues to pose pressure. ⑷ Gold futures fell 0.5% to $3,706.50 per ounce, while the US dollar index rose 0.2% to 96.82. The market expects the Federal Reserve to cut interest rates by 25 basis points and is closely watching Powell's comments on the pace of future easing. ⑸ The market is betting on the Fed starting a cycle of consecutive rate cuts. 6. The UK 10-year government bond yield fell 2 basis points to 4.626%. Slowing inflation increases the likelihood of a Q4 rate cut by the central bank. 7. The US dollar rose slightly by 0.1% to 96.745, near a two-and-a-half-month low. Markets are pricing in a 97% probability of a 25 basis point Fed rate cut. 8. Eurozone government bond yields fell slightly, with Germany's 10-year bond yield down 0.7 basis points to 2.690% and Greece's down 1.9 basis points to 3.338%. 9. The British pound fell slightly against the dollar to 1.3637, but remained stable against the euro. UK inflation was slightly lower than expected, but food price pressures remain. 10. US Treasury yields remained stable during Asian trading hours, with the two-year at 3.507%, the 10-year at 4.023%, and the 30-year at 4.643%. The market is closely watching the Fed's dot plot for guidance on future rate cuts. ⑾ Analysts believe the current starting point provides a greater cushion than in September 2024, with 10-year yields higher than then, limiting the risk of a repeat of significant increases. ⑿ Insight Investments notes that a rate cut environment is positive for investors in diversified global fixed income portfolios. While tariffs could drive up inflation, central banks may prioritize protecting the labor market.
