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Fed Minutes; New Zealand Hikes Rates: 5 Key Points to Watch on Wednesday

Published 25/05/2022, 05:20 pm
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By Laura Sanchez

Investing.com - Investors are keeping a close eye on the macro event of the week today: the minutes of the latest US Federal Reserve (Fed) monetary policy meeting.

Corporate earnings season continues.

Oil prices rise.

Cryptocurrencies are mixed this morning.

Here are the five factors investors should consider when making their decisions today:

1. Fed minutes

At 02:00 pm ET (1800 GMT), we will know the minutes of the last Fed meeting. Investors will be watching for any new details about the hawkish strategy of the Fed and the interest rate hikes for the upcoming meetings.

2. New Zealand raises interest rates; Lagarde speaks again.

As expected by the consensus, the Central Bank of New Zealand has raised its interest rate to 2.00% from 1.50%.

This increase of 50 basis points is in line with the general monetary policy tightening trend of central banks.

On the other hand, Christine Lagarde, president of the European Central Bank (ECB) will appear again this Wednesday at 04:00 am ET (0800 GMT). At 05:00 am ET (0900 GMT), we will know the financial stability report of the organization.

3. Crypto is mixed

The cryptocurrency sector is trading mixed this morning. Bitcoin is trading at $30,000 and Ethereum at $2,000.

4. Asia and the American stock market

Largely positive signs today in the main Asian indices. The Nikkei is flat. Hong Kong's Hang Seng gained 0.4% and the Shanghai Composite gained 0.8%.

On Wall Street, the market ended yesterday mixed. The S&P 500 (-0.8%), Nasdaq (-2.3%) closed lower, while the Dow (+0.15%) ended higher.

5. Macroeconomic data

Key macroeconomic releases in Europe include Germany's GDP and Gfk consumer sentiment index, Spain's PPI, as well as France's consumer confidence and job seekers. In addition to Christine Lagarde, other ECB members will speak today.

In the US, Durable Goods Orders and crude oil inventories will be released by the IEA.

Follow the day's events on our economic calendar: https://au.investing.com/economic-calendar/

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