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Weekly news summary for January 27 to February 2

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Twitter Wants to Support Crypto

Weekly news summary for January 27 to February 2

Friday, Jan. 27: Key Fed Inflation Measures Slow Down in December

The Federal Reserve’s key inflation measures cooled in December to the slowest annual paces in over a year, while the US’s consumer spending dropped 0.2% for the second straight month, providing the central bank room to further ease the pace of its interest rate hikes next week.

Official figures showed that the US’s personal consumption expenditure (PCE) core price index rose 0.3% last month from November’s 0.2% surge, climbing 4.4% from a year earlier, while the overall gauge was up 5% year-on-year, still higher than the Fed’s 2% target but both were the slowest since late 2021.

Monday, Jan. 30: Shares of Adani Group Affiliates Extend Losses

Most Adani Group companies extended their sharp declines on Monday as the Indian conglomerate tried to counter the weekend report of US short-seller Hindenburg Research LLC about an alleged stock manipulation and accounting fraud scheme.

Shares of Adani Enterprises Ltd. eased from earlier gains and ended the session 4.76% higher, but the firm’s stock price remained more than 25% lower month to date, while other affiliates also posted losses, with Adani Total Gas Ltd. and Adani Green Energy Ltd. both falling 20%.

Tuesday, Jan. 31: Elon Musk Wants Twitter Payments to Support Crypto

Twitter Inc. chief executive Elon Musk is reportedly looking to later add cryptocurrencies to the platform’s payments system, which supports Musk’s plans to make the social networking service an all-around app.

Two people familiar with the matter said San Francisco-based Twitter is developing a system that would allow payments via its platform and is expected to initially support fiat currencies, with Musk aiming to include cryptos in the future, but it was not known whether it would involve blockchain or crypto tech.

Wednesday, Feb. 1: Fed Increases Rates, Expects More Hikes Ahead

The Federal Reserve on Wednesday increased its benchmark interest rate by 25 basis points (bps) or 0.25% and said it plans to continue with its rate hikes as it aims to create more opportunity in its fight against elevated inflation.

The Federal Open Market Committee (FOMC) raised interest rates to a target range of 4.5% to 4.75% from the previous 4.25% to 4.5% range, marking the highest since October 2007, while a post-Fed meeting statement noted that US inflation has slightly eased although it remained high.

Thursday, Feb. 2: Asian Currencies Soar after Fed’s 25 bps Rate Hike

Asian currencies increased sharply on Thursday while the US dollar index and dollar index futures weakened despite the Federal Reserve’s 25-basis-point (bp) rate hike, with markets expecting a slowdown in the world’s largest economy would push the central bank to be less hawkish this year.

The Japanese yen gained 0.3% to close in on a nine-month peak against the greenback, and the Chinese yuan added 0.4% to trade near a seven-month high, while the Philippine peso and the Malaysian ringgit climbed 1% and 0.7%, respectively.

The post Weekly news summary for January 27 to February 2 appeared first on FinanceBrokerage.

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