New Zealand rate hike and oil prices dominate sentiment – Asian Midday Marketwatch

Brian speaks on regional markets performances and key issues namely;

• The Reserve Bank of New Zealand raises its official cash rate to 0.5%, among the first advanced economies to do so in the pandemic era.
• Analysts says sky-high oil prices mean stocks are quick to react to any hint of bad news such as the rate hike by New Zealand’s central bank.
• Oil steadies at multi-year highs having been pushed there by concerns about energy supply, and a decision on Monday by the OPEC+ group of producers to stick to a planned output increase rather than raising it further. These concerns weigh on equity markets, as higher energy prices could force central banks to raise rates quicker to react to rising inflation.
• Uncertainty about Evergrande’s fate hit Chinese property developers’ bonds and Hong Kong-listed shares following fresh credit rating downgrades.
• Overnight the Dow Jones Industrial Average rose 0.92%, the S&P 500 gained 1.05% and the Nasdaq Composite climbed 1.25%, despite worries that the United States will default on its debt.
• The Senate will vote tonight on a Democratic-backed measure to suspend the US debt ceiling to hopefully avert the risks of an economically crippling federal credit default.

Presenter: Brian Fernandez

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