{"id":56361,"date":"2023-01-04T20:26:06","date_gmt":"2023-01-04T09:26:06","guid":{"rendered":"https:\/\/icmarkets.eu\/blog\/?p=56361"},"modified":"2025-11-11T19:32:24","modified_gmt":"2025-11-11T08:32:24","slug":"wednesday-4th-january-2023-bond-traders-price-in-rate-cuts-despite-fed-rhetoric","status":"publish","type":"post","link":"https:\/\/icmarkets.eu\/blog\/fundamental-analysis\/wednesday-4th-january-2023-bond-traders-price-in-rate-cuts-despite-fed-rhetoric\/","title":{"rendered":"Wednesday 4th January 2023 : Bond traders price in rate cuts despite Fed rhetoric"},"content":{"rendered":"<h3><span style=\"font-weight: 400;\">Global Markets:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Asian Stock Markets : Nikkei down 1.45%, Shanghai Composite up 0.22%, Hang Seng up 3.14%, ASX up 1.63%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commodities : Gold at $1866.65 (+1.11%), Silver at $24.49 (+1.05%), Brent Oil at $80.60 (-1.83%), WTI Oil at $75.58 (-1.75%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rates : US 10-year yield at 3.696, UK 10-year yield at 3.613, Germany 10-year yield at 2.307<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">News &amp; Data:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(EUR) German Final Services PMI 49.2 vs 49 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(EUR) French Final Services PMI 49.5 vs 48.1 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(EUR) Italian Services PMI 49.9 vs 49.5 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(EUR) Spanish Services PMI 51.6 vs 50.8 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(EUR) French Prelim CPI m\/m -0.10% vs 0.50% expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(CHF) CPI m\/m -0.20% vs -0.10% expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(EUR) German Import Prices m\/m -4.50% vs -1.70% expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(JPY) Final Manufacturing PMI 48.9 vs 48.8 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(GBP) BRC Shop Price Index y\/y 7.30% vs 7.40% previous<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(USD) Construction Spending m\/m 0.20% vs -0.40% expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(USD) Final Manufacturing PMI 46.2 vs 46.2 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(NZD) GDT Price Index -2.80% vs -3.80% previous<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(CAD) Manufacturing PMI 49.2 vs 49.9 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(GBP) Final Manufacturing PMI 45.3 vs 44.7 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(EUR) German Unemployment Change -13K vs 15K expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(CHF) Manufacturing PMI 54.1 vs 53 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(EUR) Spanish Unemployment Change -43.7K vs -40.3K expected<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Markets Update:<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Asian stocks rose broadly on Wednesday and the dollar eased after reports emerged that the wave of COVID infections sweeping across China may already have peaked in some of the country&#8217;s largest cities. Traders keenly awaited minutes from the Federal Reserve&#8217;s December meeting later in the day and Friday&#8217;s employment report for clues to the central bank&#8217;s future actions. Fed funds futures traders are pricing for rate cuts later this year despite hawkish rhetoric from Fed officials.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Japanese shares tumbled as traders returned to their desks after a long holiday weekend for the New Year. Hong Kong&#8217;s Hang Seng index jumped 3% after China&#8217;s property developers reported forecast-beating December sales. China&#8217;s Shanghai Composite index edged up on hopes of swift post-COVID recovery and more policy support to boost the economy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 4.1 basis points at 4.364%. Oil prices steadied after diving 4.1% on Tuesday, the largest daily decline in more than three months, weighed by weak demand data from China, a gloomy economic outlook and a stronger U.S. dollar.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Upcoming Events:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">09:30 AM GMT &#8211; (GBP) M4 Money Supply m\/m<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">09:30 AM GMT &#8211; (GBP) Mortgage Approvals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">09:30 AM GMT &#8211; (GBP) Net Lending to Individuals m\/m<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">03:00 PM GMT &#8211; (USD) ISM Manufacturing PMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">03:00 PM GMT &#8211; (USD) JOLTS Job Openings<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">03:00 PM GMT &#8211; (USD) ISM Manufacturing Prices<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All Day &#8211; (USD) Wards Total Vehicle Sales<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">07:00 PM GMT &#8211; (USD) FOMC Meeting Minutes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">11:50 PM GMT &#8211; (JPY) Monetary Base y\/y<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Global Markets: Asian Stock Markets : Nikkei down 1.45%, Shanghai Composite [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":62731,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[196,215,339],"tags":[],"class_list":["post-56361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamental-analysis","category-market-analysis","category-recent-posts"],"_links":{"self":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/56361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/comments?post=56361"}],"version-history":[{"count":1,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/56361\/revisions"}],"predecessor-version":[{"id":56362,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/56361\/revisions\/56362"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media\/62731"}],"wp:attachment":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media?parent=56361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/categories?post=56361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/tags?post=56361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}