Morning Brief – Awaiting Fed Speaker

Asian equity markets were mixed following a weak directional bias from Wall Street, despite the raft of earnings data this week and also Fed officials, who on Tuesday gave mixed messages.

The Hong Kong Monetary Authority, HKMA, intervened to support the Hong Kong dollar, which had fallen to the weak end of its permitted trading band. Aside from that, it was very quiet trading.

During yesterday’s US session Atlanta Federal Reserve President Raphael Bostic indicated he saw one more rate hike of 25 basis points, before pausing to see its impact on the economy.

Markets considered that this would take the Fed Funds rate to a range of 5% to 5.25%. St. Louis Federal Reserve President James Bullard was more hawkish, calling the terminal rate between 5.50% and 5.75%.

Today here are more Fed speakers on the agenda ahead, in the shape of Goolsbee and Williams. Federal Reserve Bank of New York President John Williams speaks before the Money Marketeers of New York University, in New York.

Markets will also be fixated on the release of the Fed messages and data today in the shape of the ‘Beige Book’, which is due at 1400 US Eastern time, 1800 GMT.

Just for some insight, the Federal Reserve Beige Book, also known as the Summary of Commentary on Current Economic Conditions, and the report is published by the Fed eight times a year.

The Beige Book provides a summary of current economic conditions across the 12 Federal Reserve Districts in the US. And the report is compiled based on information gathered from business contacts and regional economists in each district.

Also it is intended to give a snapshot of the current state of the economy and to help in making decisions about monetary policy and it reports on various aspects of the economy, such as consumer spending, manufacturing activity, employment, and real estate.

Catherine L Mann, member of the Monetary Policy Committee of the Bank of England, participates as a panellist at the Brandeis International Business School today. The UK will also release inflation figures.

Just for some insight, the Federal Reserve Beige Book, also known as the Summary of Commentary on Current Economic Conditions, and the report is published by the Fed eight times a year.

• its intended to give a snapshot of the current state of the economy and to help in making decisions about monetary policy.
• its reports on various aspects of the economy, such as consumer spending, manufacturing activity, employment, and real estate.
• and includes a summary of the outlook for the economy in each district.