Asian markets advance as focus turns to US Fed boss

With hopes for a big interest rate cut fading focus is on Federal Reserve boss Jerome Powell's congressional testimony this week

TOKYO, July 10 (Reuters) - The dollar neared a three-week high against a basket of major currencies on Wednesday as investors continued to unwind bets on deep US interest rate cuts, pushing Treasury yields higher.

Expectations for a 50-basis-point rate cut this month have evaporated, but investors still expect a 25 bps cut.

In prepared remarks to a congressional committee, Powell contrasted the Fed's "baseline outlook" of continued USA growth against a considerable set of risks - including persistently weak inflation, slower growth in other major economies, and a downturn in business investment driven by uncertainty over just how long the Trump administration's trade war with China and other countries will last and how intense it will become.

Trading is expected to be subdued ahead of Powell's testimony to the US Congress on Wednesday, which will give clues on the near-term outlook for monetary policy. South Korea's Kospi gained 0.4% to 2,059.44. NZD/USD had a quick pop lower in Asian trading to 0.6568 on a large sell order before recovering to stick around 0.6590-10 levels in Europe.

Wall Street had been duly circumspect, with the Dow ending down 0.08%, while the S&P 500 added 0.12% and the Nasdaq 0.54%.

Futures markets still overwhelmingly believe the Fed will cut later this month but expectations have shifted to a smaller interest rate decrease than had been contemplated prior to the jobs data. Hong Kong's Hang Seng rose 0.3% to 28,204.69, while the Shanghai Composite fell 0.4% at 2,915.30.

"Unless you get some huge red flags from the testimony over the next two days, we are going to enter into a more accommodative environment", she told Bloomberg TV.

PSG Sporting Director: Neymar Can Leave For The Right Offer
Paris St Germain said on Monday they would take action against the Brazilian forward after he failed to report for training. However, fellow former Barca and Spain global Lobo Carrasco believes Neymar's return would cause problems defensively.

In Asia, there was a wide sell-off in stocks, with MSCI's broadest index of Asia-Pacific shares outside Japan losing 1.4 percent and China's blue-chip CSI300 index down 2.32 percent, its biggest daily loss since May 17. Last year, Fed officials raised rates four times, in part to stave off the risk of high inflation and in part to try to ensure that they would have room to cut rates if the economy stumbled.

He is most unlikely to dampen speculation of a 25 basis points reduction in United States interest rates to the 2.00%-2.25% range from the current 2.25%-2.50% when the rate-setting Federal Open Market Committee ends its next meeting on July 31.

"Fed Powell's testimony will be scrutinized for both his views on the economic situation and guidance in terms of any upcoming moves". USA crude was up 82 cents to $58.65 a barrel.

In commodity markets, Brent crude futures were down 0.09 percent to $64.18.

CURRENCIES: The dollar rose slightly to 108.90 Japanese yen from 108.82 yen.

Against the dollar, the euro was steady at $1.1208 after hitting $1.1194, which was the lowest in almost three weeks.

Related News:



Most liked

Nadler: Judiciary Committee to consider subpoenas on Thursday for immigration policy probe
The committee has also subpoenaed Mueller, who in response agreed to publicly testify July 17 about his investigation. Doug Collins (R-GA) believes this has to do with Special Counsel Robert Mueller's scheduled testimony next week.

Nicki Minaj pulls out of Saudi Arabia concert to support LGBT rights
The organization reacted on Tuesday by praising the reversal of Minaj's decision. Saudi organizers said the Jeddah World Fest will be broadcast globally.

Jada Pinkett Smith Embarasses Son Jaden In Honor of His 21st Birthday
According to People , the day before his 21st birthday, Jaden Smith opened a free food truck to feed the homeless in Los Angeles . In the caption, Pinkett Smith opened up about giving birth to Jaden and what it meant to her.

National Basketball Association adding coaches' challenges for 2019-20 season
When an MVP-caliber player demands a trade, it can be disheartening, said Commissioner Silver. Teams could begin talking to free agents, per letter of the law, after 6 p.m.

European Central Bank: Development of Facebook's Cryptocurrency Libra is "Too Dangerous"
And it may inspire the bank to accelerate its plans to speed up its own project to develop a digital currency. They could disrupt monetary policy and entail currency risks in economies with a volatile local currency.

Aston Villa sign Mings from Bournemouth
Aston Villa are poised to sign Tyrone Mings on a permanent basis in a deal that could be worth £26.5m to Bournemouth . The 26-year-old wrote on his account: "Absolutely delighted to be back as a permanent @AVFCOfficial player".

Konta loses her cool at 'patronising' question
The American hard-court swing kicks-off a few weeks after the Wimbledon final - which Murray and Williams hope to be involved in. Konta was the last British player remaining in the tournament. "That has been something I've not been able to do all year".

Meghan Markle's Security Shuts Down Fan Photos at Wimbledon
Meghan attended Wimbledon last week with two close friends, where they watched Serena Williams play Kaja Juvan from the royal box. Spice Girl Geri Horner sat at the Royal Box on Centre Court during Day Five of the Wimbledon Tennis Championships in London.

Microsoft Patent Experimental Xbox Controllers for Project xCloud
The new Play Later feature can be found in the Xbox Game Pass section of your consoles desktop or on the Xbox mobile app. It's especially frustrating when third-party games are taken off the service before you get a chance to play.

Democrats slam Sen. Thom Tillis over health care. Is that fair?
Republicans were unsuccessful at repealing and replacing the law in 2017 when they controlled both chambers and the White House. Court of Appeals for the Fifth Circuit is set to hear oral arguments in the case of Texas v.

Manfred denies baseballs were changed to increase home runs
"It's a f-ing joke", said Verlander, an eight-time All-Star who is starting his second All-Star Game on Tuesday. He surmised that baseballs have been "juiced" or altered because they are manufactured by an MLB-owned company.

The official YouTube app has finally returned to Amazon Fire TV devices
In other words, you can stick to a single device ecosystem without having to jump through hoops to enjoy the shows you like. No more sketchy workarounds or shamefully switching to that hastily purchased Fire TV just to watch The Expanse.

Hannah Brown makes shocking and unprecedented 'Bachelorette' rose ceremony decision
Jed has been real shady this entire season. 'I beg you to remember what seems like a harmless action is damaging to real people . But I don't know if I've had the time to know who my person is here because I need more time", Hannah told host Chris Harrison.

Senator introduces USWNT equal pay bill after letter from NCAA coach
The 2019 FIFA Women's World Cup is over, but the festivities are just getting started for the us team. The victory is the USA women's national team's fourth Women's World Cup title and second in a row.

FACT CHECK: Did Ross Perot Bequeath $100 Million to the Trump Campaign?
He would eventually be honored for this activism, receiving an award from then-Secretary of Veteran Affairs James Peake in 2009. He had founded EDS in 1962 and sold control of it to General Motors for 2.5 billion USA dollars in 1984.