From The Rio Times · Diego Fernández · · 1m 40s
US Stocks Dip as 10-Year Yield Holds 5.3%
US stocks slip 0.2% as 10-year yield holds 5.3% amid Fed patience.
In brief
US stocks slip 0.2% as 10-year yield holds 5.3% amid Fed patience. US stocks fell 0.2% as 10-year Treasury yields held at 5.295% on Wednesday, with the Fed showing no urgency for an October rate hike. Originally reported by The Rio Times.
Market Reports
US stocks slip 0.2% as 10-year yield holds 5.3% on Wednesday.
Fed Minutes Show Patience
Fed minutes published Wednesday show most policymakers expect one more rate increase before year-end.
John Williams on Rate Hikes
New York Fed President John Williams said on 29 September there is no urgency to move again.
Prediction Markets
Prediction markets now give a 16% chance of a rate hike in October.
US 10-Year Yield
US 10-year Treasury yield closed at 5.295% on Wednesday.
Dollar and Gold Pressure
Stronger dollar has pressured gold to $4,108/oz.
Oil Prices Impact
WTI traded near US$90 and Brent near US$101 on Wednesday.
Brazil Inflation Risk
Brazil IPCA inflation rose 0.7, 0.8% in September, down from 0.32% in August.
Latin America Exposure
A delayed Fed hike may briefly support the real and regional assets.
Oil and Inflation
Oil near US$100 for Brent keeps inflation risk alive for emerging markets.
Brazil's Position
Brazil sits in the middle: crude exports benefit from stronger prices but fuel effects complicate BCB rate calculus.
Market Reactions
S&P 500 slipped from record at 7,802 with -0.22% change.
What to Watch
Chile and Mexico inflation prints, US jobless claims, and Brazil’s IPCA follow on Friday.
The bottom line
US stocks fell 0.2% as 10-year Treasury yields held at 5.295% on Wednesday, with the Fed showing no urgency for an October rate hike.
