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The Fed remains open to raising interest rates again and is questioning markets

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The Fed remains open to raising interest rates again and is questioning markets

Have we peaked or not?
But, we have come close to it!

This is the question and the answer that has been running through the minds of traders in the US stock markets since the end of the Federal Reserve meeting and the speech of its Chairman Jerome Powell.

After the Market Committee’s decision to keep interest rates unchanged at 5.25%, as most expectations indicated, the Federal Reserve chairman made clear that most members agreed that interest rate hikes would be appropriate, and no member saw them likely. What this year’s rate cut has done to rein in monetary policy is yet to show its impact, particularly on inflation.

At each upcoming meeting of the Market Committee, interest rates are not pre-determined and are determined on a data-driven basis, giving more relative weight to economic data, particularly inflation-related data, to move markets. Lifting or under-lifting as required has become parallel.
He did not confirm that the Fed would raise rates at its next meeting in July, but instead tried to leave the door open to the possibility of a hike, God willing, and he stopped short of saying that the current interest rate appears to be enough to keep inflation down. 2% per annum, he said after the meeting on May 3. Mark the past and stop uploading the next meeting, which, as we have seen, has already happened.

A decision to keep interest rates unchanged this time around will give members more time to reassess the situation with more data, an economic assessment provided by the panel showed.

That’s what came from more than one of the Fed’s conservatives before the meeting, as vice presidential candidate Philip Jefferson said before members’ enforced silence before the meeting: “If the Fed stops raising, it will give it a better opportunity to look at and analyze more data to determine the extent of the need for inflationary policy.” Hawkish,” Reuters said, agreeing with Patrick Harker, a member of the market. The committee and the president of the Federal Reserve Bank of Philadelphia made it clear two weeks before that meeting that they wanted to support a “hold” on raising interest rates.

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Additionally, the central bank reiterated that inflation remains high and remains committed to returning inflation to its target of 2% annually over the medium term.
He added that monetary policy’s target inflation level will not be reached without a decline in economic growth below its average rates and underperformance of the labor market.

Regarding credit conditions, he added that as its conditions become more stringent, the housing sector and companies will reduce borrowing, which may affect economic activity, employment and inflation, but the extent of this impact is still uncertain. .

Following are the average expectations released by the market committee members after their meeting on the fourteenth of this month:

For interest rate:
5.6% by the end of 2023, 4.6% in 2024, 3.4% in 2025, 5.1% in 2023, 4.3% in 2024, and 3.1% in 2025 were expected by members last March.

They also predict the development of:
Members last March expected growth of 1% this year, 1.1% in 2024, and 1.8% in 2025, 0.4% in 2023, 1.2% in 2024, and 1.9% in 2025.

Regarding unemployment rate:
Members expected it to be 4.1% by the end of this year, 4.5% in 2024, 4.5% in 2023, 4.6% in 2024 and 4.6% in 2025.

As for inflation:
The average expectation of the panel members about the price index of private consumption expenditures is as follows:
3.2% by the end of 2023, 2.5% by the end of 2024, 2.1% by the end of 2025, 3.3% by the end of 2023, 2.5% by the end of 2024 and 2.1% by the end of 2025. Last March by members.

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Excluding food and energy prices from the index, members’ average expectations are as follows:
3.9% at the end of 2023, 2.6% in 2024, 2.2% in 2025, 3.6% at the end of 2023, 2.6% in 2024, and 2.1% in 2025, as expected by members last March.
In general, members of the committee should make it clear that inflation will still be among their priorities, keeping the central bank’s interest rate an option if needed to control prices.

Members expect an improvement in economic performance this year than expected in March, but then a decline in growth rates in 2024 and 2025 and a tightening of monetary policy resulting in the unemployment rate rising from current levels. To curb inflationary pressures, but their expectation of a rise in the unemployment rate came in lower than members expected last March.

Excluding food and energy prices, their expectations for inflation are still rising from one meeting to another, showing they continue to appreciate the risks of rising inflation, even after a 5% hike in the past 15 months. , inflation is more than twice the central bank targets.

On the other side of the Atlantic, European Central Bank President Christine Lagarde said during a press conference following the European Central Bank’s expected decision to raise the interest rate on deposits in the euro by 25 basis points. 3.50% and the interest rate on refinancing was 4% yesterday. The inflation-defying interest rate has been strongly supported by rising wage levels in the labor market.

The European Central Bank has set an annual target of 2%, with members expecting inflation to be 2.2% in 2025, clearly raising interest rates again at next July’s meeting, which has led to support against major currencies. , should rise again to trade against 1.095.

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U.S. stock market indexes fell early after committee members agreed to raise interest rates to an average of 5.6% by the end of the year, leaving the door open for another hike of 25 basis points, or as the Federal Reserve chairman said during his press conference, Fed members’ expectations. He also clarified that he did not like these expectations due to the current situation and the results at the same time. It should look like a commitment to be fulfilled by the central bank.

In general, with more hindsight, market participants felt that the summit of interest rate hikes was imminent, if not already, encouraging risk-taking in U.S. stock markets again.

Futures are currently sitting near the psychological 34500, while the futures of the US stock indices are currently near 4440, and the psychological has risen above 4400. As well as the future higher 100 should reside again. Above 15200, after the start of the US session, profit taking was evident at the time of writing this report.

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Economy

UAE stocks add 342 billion dirhams to its market capitalization in 9 months

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UAE stocks add 342 billion dirhams to its market capitalization in 9 months

Local stock exchanges added about 342 billion dirhams to their market capitalization in the first nine months of this year, supported by increased demand from companies and investment portfolios, with new listings based on data from the Abu Dhabi Securities Market and the Dubai Financial Market. .

Markets’ market value was boosted by four new listings in the current year, including “ADNOC Gas”, “Brissite” for artificial intelligence solutions and “ADNOC Logistics and Services” on the Abu Dhabi market. Shares of “Al Ansari” Financial Services on the Dubai Financial Market.

The market capitalization of listed stocks rose from 3.206 trillion dirhams at the end of last year to 3.548 trillion dirhams in the last session of last September, with 2.852 trillion dirhams distributed to stocks listed on the Abu Dhabi Securities Market and 696.6 billion dirhams to stocks listed on the Dubai Financial Market.

Local stocks attracted more than 321.6 billion dirhams of liquidity in the first nine months of the year, with 243.9 billion dirhams distributed on the Abu Dhabi Securities Market and 77.6 billion dirhams on the Dubai Financial Market, while around 87.2 billion shares were traded, of which 44.66. billion shares were traded.42.6 billion shares in the Abu Dhabi market by executing more than four million transactions in the two markets in Dubai.

The Abu Dhabi market index “Fadex 15” ended last September at 9496.03 points, while the “FTSE” Abu Dhabi General Market Index (Fadji) ended at 9785.32 points and the real estate index rose. 31.6%, consumer goods about 15.6%, and healthcare 7.1%, energy 3.6% and services 2.7%.

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Shares of “Abu Dhabi National Hotels” made the biggest gains on the Abu Dhabi market since the start of the year, rising 161%, followed by “Buildco” with gains of 85.2%, and shares of “ADNOC Drilling” with 34.9%, and “Aldar Properties” with 30%, and “ADNOC Gas” 23.8%, “Abu Dhabi Islamic” 23.6%, “ADNOC Logistics” 16.6%, “Abu Dhabi Ports” 12.4%, “Yahsat” 7.2%, and “Boroj” 6.1%.

“International Holding” has the largest share of the trade, attracting more than 65.6 billion dirhams in cash flow, followed by “Alpha Tabi” with about 22.1 billion dirhams, then “Multiplay” with 17.7 billion dirhams, “First Abu Dhabi” with 10.7 billion dirhams, and “Altar” with 9.1 billion dirhams. billion dirhams.

The Dubai Public Market Index rose 24.8% or the equivalent of 827.5 points in the first nine months of this year, jumping from 3336.07 points at the end of last year to reach 4165.58 points in the last September sessions. The real estate sector index was up 40.9%, industrials 30%, financials 22%, and services 16.1%, their highest levels in more than eight years.

The performance of the Dubai market improved with “Emaar Properties” shares rising 37.2%, “Emirates NBD” 36.9%, “DEWA” 10.3%, “Emaar Development” 58.7% and “TECOM” shares 21.8%. %, and “Air Arabia” 30.7%. %, “SALIC” 33.5%, “Dubai Investments” 13.8%, “Empower” 33.1%, “Dubai Financial Market” 5.3%, and “Dubai Islamic” 2.6%, while “Gulf Navigation” posted strong gains of over 974%. “Ajman Bank” also achieved 91.5%.

“Emaar Properties” has the largest share of the trade, attracting about 16.2 billion dirhams, “Emirates NBD” 9.07 billion dirhams, “Ajman Bank” 5.68 billion dirhams, “Dubai Islamic” 5.5 billion dirhams and “Deva” 4.98 billion. billion dirhams.

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• 4 new listings in the current year including “ADNOC Gas”, “Brissite”, “ADNOC Logistics and Services” and “Al Ansari”.

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Emirates News Agency – UAE stocks have added 342 billion dirhams to their market capitalization in less than 9 months.

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Emirates News Agency – UAE stocks have added 342 billion dirhams to their market capitalization in less than 9 months.

By: Rami Samy.

ABU DHABI, 30 September / WAM / Local stock markets added 342 billion dirhams to their market capitalization in the first nine months of this year, driven by increased demand from companies and investment portfolios, and new listings based on data from the Abu Dhabi Securities Market and the Dubai Financial Market.

Markets’ market value was boosted by four new listings in the current year, including “ADNOC Gas”, “Brissite” for artificial intelligence solutions and “ADNOC Logistics and Services” on the Abu Dhabi market. Shares of “Al Ansari” Financial Services on the Dubai Financial Market.

The market capitalization of listed shares rose from 3.206 trillion dirhams at the end of last year to 3.548 trillion dirhams in the last sessions of this September, with 2.852 trillion dirhams distributed to listed shares and 696.6 billion listed shares on the Abu Dhabi Securities Market. In the Dubai Financial Market.

Local stocks attracted more than 321.6 billion dirhams in liquidity in the first nine months of the year, with 243.9 billion dirhams distributed on the Abu Dhabi Securities Market and 77.6 billion dirhams on the Dubai Financial Market, while around 87.2 billion shares were traded, including 44.6 billion shares. 42.6 billion shares in the Dubai Financial Market in Abu Dhabi and the Dubai market, by executing more than 4 million transactions in the two markets.

– Abu Dhabi Market.

The Abu Dhabi Market Index “Fadex 15” ended this September with 9496.03 points, while the FTSE Abu Dhabi General Market Index “Fadji” gained 9785.32 points and the real estate index rose 31.6. %, consumer goods around 15.6%, healthcare 7.1%, energy 3.6% and services 2.7%.

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Shares of “Abu Dhabi National Hotels” achieved the biggest gain in the Abu Dhabi market since the beginning of the year, rising 161%, followed by “Buildco” with gains of 85.2%. “ADNOC Drilling” shares another 34.9%, “Aldar Properties” 30%, and “ADNOC Gas”. “23.8%, “Abu Dhabi Islamic” 23.6%, “ADNOC Logistics” 16.6%, “Abu Dhabi Ports” 12.4%, “Yahsat” 7.2%, and “Boroj” 6.1%.

“International Holding” has the largest share of the trade, attracting more than 65.6 billion dirhams in cash flow, followed by “Al-Dhabi” with about 22.1 billion dirhams, then “Multiplay” with 17.7 billion dirhams, “First Abu Dhabi” with 10.7 billion dirhams and “Aldar” with 9.1 billion dirhams. .

– Dubai market.

In the first nine months of this year, the Dubai General Market Index rose 24.8% or the equivalent of 827.5 points, from 3,336.07 points at the end of last year to 4,165.58 points in the last September sessions. Its highest levels in more than 8 years, with the index rising, real estate sector 40.9%, industrials 30%, financials 22% and services 16.1%.

The performance of the Dubai market improved with “Emaar Properties” shares rising 37.2%, “Emirates NBD” 36.9%, “Dewa” 10.3%, “Emaar Development” 58.7% and “TECOM” shares 21.8%. %, “Air Arabia” 30.7%, and “SALIC”. Stronger than “33.5%, “Dubai Investments” 13.8%, “Empower” 33.1%, “Dubai Financial Market” 5.3%, “Dubai Islamic” 2.6%, while “Gulf Navigation” 974% and “Ajman Bank” 91.5% Profit was achieved.

“Emaar Properties” accounted for the largest share of the trade, attracting about 16.2 billion dirhams, “Emirates NBD” 9.07 billion dirhams, “Ajman Bank” 5.68 billion dirhams, “Dubai Islamic” 5.5 billion dirhams and “Deva” 4.98 billion in liquidity. Dirham.

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Ahmad al-Boutli/Rami Samih

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4 new AI tools you can use to edit photos on Instagram

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4 new AI tools you can use to edit photos on Instagram
As part of Meta’s Connect conference last Wednesday, Mark Zuckerberg revealed several creative AI features that will be useful for some content creators and influencers. For example, users will be able to use Meta’s AI technology, revealed as Emu. In the Instagram app.


Zuckerberg said Meta will begin rolling out these photo-editing and generative AI tools to Instagram “in about a month,” and Meta’s Emu technology will take seconds to generate images, Zuckerberg said during the Connect conference.


In addition to photo editing tools, Meta is already releasing AI stickers that use Emu and Llama 2 technology, and advanced applications of AI will soon appear in Meta apps in the form of chatbots or AI-powered assistants. Meta will begin testing the beta feature immediately.


Here’s a full rundown of the new AI features Meta brings to Instagram:


– New photo editing tools in the Instagram app:


Like many apps and generative AI filters that are ubiquitous on TikTok, Instagram is adopting its own generative AI tools. Users can also edit photos by “re-styling”, which changes the artistic style of the photo, similar to altering the photo. A watercolor, or “background,” that allows users to replace the background of the image with an illustration.


Any image edited using these tools “represents the use of artificial intelligence,” Mitta wrote in a blog post.


– AI-generated stickers for use in direct messages:


Instead of sticking with Instagram’s existing preloaded stickers or emojis, Meta is rolling out a new tool that lets users create unique stickers using AI. Meta wrote in his blog post that the feature will be rolling out to “select English users next month.”

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AI stickers are also available in Instagram features like Live Messages and Stories, and other apps like WhatsApp, Messenger and Facebook’s Stories feature.


– Interactive AI bots – or characters:


In addition to its general AI assistant called “Meta AI,” Meta is working with celebrities and influencers to develop 28 AI chatbots. The first cast uses celebrities and popular influencers like Tom Brady and Kendall Jenner. MrBeast, LaurDIY, and Charli D. Amelio and the AI ​​characters will have their own profiles on Instagram and Facebook.



– Creators will be able to build their own robots in the future:


“We’re building a platform to build AI that can help you do things or have fun,” Zuckerberg said. “The way it works is that people can interact with these AI systems across the entire product universe. .”


Zuckerberg pitched these AI bots as a potential way for creators to “engage” with their communities. The creator of these bots should be “authorized” and “directly controlled,” Meta wrote in a blog post. Already, many startups have released AI tools. Similar applications allow creators to create AI versions such as Afterparty or Render Media.

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