Asia Pacific stocks were mostly higher on Wednesday morning, while bonds were under pressure ahead of the Federal Reserve’s latest policy decision in the United States. Investors are braced for the highest interest rate hike since 2000 but waiting for more information on how the Fed will combat inflation forcefully.
South Korea’s KOSPI fell 0.03 percent.
The ASX 200 in Australia fell 0.07 percent after retail sales numbers for March 2022 revealed earlier.
The Hang Seng Index in Hong Kong lost 0.99 percent. The Chinese and Japanese markets are still closed for the holiday season.
In the United States, the S&P 500 and Nasdaq 100 contracts advanced. A second consecutive daily surge in US stocks Tuesday encouraged them on Tuesday, despite tumultuous trading.
Bonds declined as most central banks tightened their monetary policies, but Australia and New Zealand rates rose. Because of the Japanese holiday, there is no cash trading.
The Fed expects to raise interest rates by 50 basis points; moreover, it plans to discuss plans to reduce its balance sheet in its policy decision, issued later in the day. The views of Fed Chairman Jerome Powell will be crucial in making a choice. Suppose he makes more hawkish statements than predicted. In that case, it could heighten fears about an economic downturn in the United States as borrowing costs rise.
Swap traders have already fully priced in half-point Fed hikes in June, July, and September 2022; marking the most aggressive path in three decades. Any signals of a 75-basis-point hike, on the other hand, may have a detrimental influence on markets.
Stocks Making the Most Significant Moves
Uber (UBER) — Uber slumped 1% in premarket trading after reporting a quarterly loss and revenue that exceeded expectations. Uber saw a rise in ride volumes during the quarter while food delivery grew.
Brinker International (EAT) – The parent company of Chili’s and other restaurant chains missed projections by 10 cents per share, reporting adjusted quarterly earnings of 92 cents per share and issuing a weaker-than-expected earnings outlook. Brinker cited high material and labor expenses, and shares fell 10.3 percent in premarket trading.
Generac (GNRC) – The maker of backup generators and other power equipment rose 5.3 percent in premarket trading after exceeding top and bottom-line projections for its most recent quarter. After adjusting for inflation, Generac earned $2.09 per share, outperforming the $1.94 average expectation.
Airbnb (ABNB) – Airbnb reported a quarterly loss of 3 cents per share, which was less than the 29-cent loss expected by analysts. Revenue exceeded expectations as travelers continued to book rentals despite higher host rates. In premarket trading, Airbnb rose 5.2 percent.
Match Group (MTCH) – Match Group shares fell 6.1 percent in premarket trade after the dating service’s CEO Shar Dubey announced his resignation at the end of May. Bernard Kim, president of Zynga (ZNGA), will take her position. On the other hand, Match Group posted higher-than-expected profit and revenue for the most recent quarter.
LTHM (Livent) – The lithium producer’s stock jumped 19.8 percent in premarket trading after reporting better-than-expected quarterly earnings and raising its revenue outlook for 2022.