“There are no signs that the labour market or inflation data are slowing sufficiently for the Fed to declare victory on inflation,” said Brian Martin, head of G3 economics at ANZ. Rates are seen peaking at least 3.5%, though some Fed members are arguing for 4% or more. Markets are leaning toward a half-point hike in September and a one-in-three chance of 75 basis points (bp). Federal Reserve officials signalled there was more work to do on interest rates, with the only difference being on how fast and high to go.

The threat of higher borrowing costs hung over markets as no less than four U.S. S&P 500 futures eased 0.1% and were little changed on the week having repeatedly failed to clear the 200-day moving average, while Nasdaq futures slipped 0.2%.ĮUROSTOXX 50 futures dipped 0.1%, while FTSE futures edged up 0.2%.

Japan’s Nikkei fared better with a 0.3% gain due in part to a renewed slide in the yen. economy.Īdded concerns about the health of China’s economy saw MSCI’s broadest index of Asia-Pacific shares outside Japan ease 0.3%, to be down 1.1% on the week.Ĭhinese blue chips were flat, while South Korea lost 0.5%. dollar made all the running as recession clouds gathered over Europe and highlighted the relative outperformance of the U.S. SYDNEY (Reuters) – Asian shares were left in limbo on Friday while the U.S.

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