About the Video
Weekly stock market analysis – Bank of Japan widening yield target range, US Core PCE Index and more.
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ Click Here
⬇️Timestamps:
0:00 → Economic Updates
3:00 → Bank of Japan Widening Yield Target Range
4:47 → US Core PCE Index
6:01 → Upcoming Important Dates
Last week, the Bank of Japan (BOJ) surprised the markets by widening the upper limit of the target range on the 10-year Japanese Government Bond (JGB) bond yield to 0.50% from the previous upper limit of 0.25%. This raises the possibility the BOJ will end its ultra-easy policy and raise interest rates next year under new leadership as BOJ Governor Kuroda is set to retire in April 2023.
The BOJ is walking a tightrope as it attempts to maintain QE while keeping negative short-term interest rates and pinning the 10-year JGB bond yield near zero. Mizuho Bank said, “the impact could be massive through financial markets” when the BOJ finally decides to end its ultra-easy policies. If a sustained tightening sees Japanese investors dispose of overseas investments, that could fuel contagion around the world. According to Bloomberg data, Japanese investors have more than $3 trillion invested in overseas stocks and bonds, with over half of that in U.S. assets.
The Personal Consumption Expenditures (PCE) price index excluding food and energy, which Federal Reserve Chair Jerome Powell has stressed is a more accurate measure of where inflation is heading, rose 0.2% in November from a month earlier. From a year earlier, the gauge was up 4.7%, a step down from a 5% gain in October. The overall PCE price index increased 0.1% and was up 5.5% from a year ago, the lowest since October 2021 but still well above the central bank’s 2% goal.
Like the Consumer Price Index (CPI) figures released earlier December 2022, the figures point to a welcome retreat in price pressures and suggest the US has passed peak inflation. While many expect to see a rapid pullback in inflation over the next year, sustained wage increases from a still-tight labor market threaten to keep prices elevated.
Follow Ziet
Disclaimer: The content on this channel is for educational purposes only and merely cites my own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary.
