Investing.com – Central banks around the world react differently to the Federal Reserve's rate cut, US stocks are set to lower opening, and a new saber-rattling causes oil prices to rise again. The following must be known to the financial markets on Thursday, September 19:
1. Manic Monetary Thursday
The global monetary easing cycle continued overnight, with Hong Kong both lowering official interest rates, although interest rates remained so important, suggesting that they could be eased at its next meeting in October.
In Europe After the benchmark rate had been strengthened against both the dollar and the euro, the calculation of the penalties for excess bank reserves for the future was changed. One measure that would reduce the side effects of negative interest rates on banks, it said. They have probably canceled their last interest rate increase for the foreseeable future.
They still have to announce their monetary policy decisions.
Decisions came as an Organization for Economic Co-operation and Development for Global Growth this year at 2.9%, the lowest level in ten years.
. 2 Shares Should Open Lower
US. Stock markets are expected to open lower and reverse a late-rally rally on Wednesday that has barely changed the markets the day after the Federal Reserve's political decisions and press conference.
They dropped 51
. 3 Fed wants to calm money market again
The Federal Reserve will hold an overnight repo for the third year in a row to ease US money market conditions.
As of Wednesday, the Fed will offer a maximum of $ 75 billion to banks in overnight money. Banks had asked for $ 80 billion at the auction on Wednesday, which meant that the free market margin had once again got mixed up, pushing the Fed to over 2.30%, above the old one The Fed's target range was 2% -2.25%.
There is still no consensus on the long-term importance of this liquidity bottleneck. If, as many argue, the causes are largely technical and short-term, overnight rates should logically return to their desired level within days. Otherwise, the Fed may again come under pressure to buy assets.
. 4 Microsoft (NASDAQ) raises dividend, repurchases
Microsoft (NASDAQ) stocks will be in the limelight after the company's closing, expanding the volume of its share repurchase program after the closing bell on Wednesday.
The Board raised the quarterly dividend by 11% to 51c, although this still leaves an implied annual dividend yield of only 1.5%, which is below the S & P 500 average of 1.9%.
In addition, the company increased its perpetual share repurchase program by another $ 40 billion or just under 4% of market capitalization.
. 5 In the tweets of the war oil is rising again, Iraq reported.
Oil prices rose again as fears of a renewed military conflict in the Gulf just hours after Saudi Arabia and the US appeared to downplay short-term war risk.
The market was also unsettled by reports that Saudi Arabia wanted to buy millions of barrels of crude oil from Iraq to ensure that the kingdom met its obligations to its own customers. This was seen as undermining the claim of Saudi officials that production would be quickly restored to levels reached before the attacks on major energy facilities over the weekend. [6/6/59/6] At 6:00 am, futures rose 1.7% to $ 59.02 a barrel, while futures rose 2.3% to $ 65.11 a barrel.