Wednesday's Markets Update (June 14, 2023)

15 Jun 2023 by rate3

On Wednesday, Powell left the rate unchanged, as was anticipated by the majority of market analysts. NASDAQ (open: 13,570, close: 13,626) rose slightly in response, while BTC (open: 26,022, close: 25,874) continued to decrease due to weak demand, as investors reallocated funds to tech stocks.

Details: The Fed left rates unchanged at 5-5.25%, but signaled more hikes are possible if the economy and inflation don't slow down. The fund's rate is now seen at 5.6% this year, up from 5.1% in March. GDP is seen rising 1% this year, up from 0.4% in March. Also, the inflation estimates for 2024 and 2025 were raised to 4.6% and 3.4%, respectively, from 4.3% and 3.1%. PCE inflation is seen at 3.2%, down from 3.3% in March. The Fed said it will assess the economy and adjust rates if needed.

Producer prices in the US decreased 0.3% in May, following a 0.2% rise in April. Goods prices fell 1.6%, the largest decrease since July 2022. Services prices edged 0.2% higher. Year-on-year, producer prices rose 1.1%, the least since December 2020.

Other Markets Updates:

South Africa: the retail trade fell 1.6% in April 2023 YoY, the fifth consecutive month of decline. The drop was led by general dealers (-2.8%), food, beverages and tobacco in specialised stores (-6.2%) and all other retailers (-4.2%). On a monthly basis, retail sales rose 0.4%.

Argentina: the annual inflation rate hit 114.2% in May, up from 108.8% in April. This is the highest level since 1991.

China: the industrial production grew 3.5% in May 2023, down from 5.6% in April. This was the softest pace in three months, mainly due to a slowdown in manufacturing and mining. Within manufacturing, production grew most notably for electrical machinery (15.4%) and automotive (23.8%). Production decreased for agriculture (-1.3%), coal mining (-1.6%), non-metallic mineral products (-2.6%), and textile (-1.8%).