Fed's Williams: Inflation Still Too High, More Tightening Needed
New York Fed President John Williams said inflation remains too high and the Fed needs to tighten further, supporting expectations for a December rate hike.
European markets ended a quiet session with oil falling and gold rising, while US-Iran tensions persisted.
Market Wrap:
Markets:
The session was quiet, with no significant economic data or news releases. The main event was the Eurozone Sentix Investor Confidence report, which dipped to 2.4 in November as economic expectations worsened for a second straight month.
US confidence also softened, with the index dropping to 13.1. This came as expectations turned negative for the first time since June. Sentix pointed to worries that a Democratic Congress could restrict Trump's economic agenda and fiscal stimulus, along with high financing costs and geopolitical risks.
On the US-Iran front, Iranian Foreign Ministry spokesperson Baghaei stated that Tehran's two-day proposal is the most reasonable option currently on the table. He also confirmed that an IAEA visit to the Bushehr nuclear facility had taken place in recent days. Regarding relations with Iraq, Baghaei stressed that external pressure should not undermine the strong bilateral ties between the two countries.
Baghaei also criticised the US naval task force, arguing that the initiative was aimed at diverting attention from the US midterm election results. When asked about South Korea's plans for a regional naval presence, he urged Seoul not to become involved in what he described as a complex issue.
In the markets, risk sentiment improved slightly on a small dip in oil prices. However, given the lack of catalysts, the moves may not extend too far, and markets remain mostly rangebound.
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New York Fed President John Williams said inflation remains too high and the Fed needs to tighten further, supporting expectations for a December rate hike.
Bitcoin traded near $71,200 after hitting a fresh session low of $71,000, as the 10-year yield stayed above 5% and stocks dipped.
NY Fed's Williams speaks after hotter CPI data, boosting expectations of a December rate hike.
New Zealand's factory PMI eased to 54.9 in October, its 16th consecutive month of expansion, though at a slower pace than September.