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Asian markets gain as Evergrande makes overdue bond payment

Asian shares gained Friday after a late-in-the-day wave of buying pushed the S&P 500 to a fresh record high. 11:58 p.m. Oct. 21, 2021

Traders are pricing in annual pace of U.S. consumer price gains at around 6% or higher for the next three months

So-called "fixings," which trade as derivatives, show that the annual rate of CPI will continue to go higher for rest of the year, according to Tim Magnusson of Garda Capital Partners in Minneapolis. 1:49 p.m. Oct. 21, 2021

Digital dollar would put Fed in direct competition with banks, Fed’s Waller says

If the Fed developed a digital currency, it would in direct competition with banks and would be akin to the government to deciding to make electric cars to compete with Tesla, said Fed Gov. Chris Waller on Thursday. 1:18 p.m. Oct. 21, 2021

Today in Commodities

U.K., Europe natural gas prices see spike on fading hopes of more Gazprom supplies

Natural gas prices in the U.K. and Europe briefly spiked on Monday, after a report that Russia's Gazprom may not send more supplies as expected following recent comments from Russian President Vladimir Putin. European natural gas futures - based on benchmark November Title Transfer Facility (TTF) futures in the Netherlands -- climbed to 107.70 euros per megawatt hour (MWh) before easing back to 94.82 euros, with similar rollercoaster moves seen for U.K. futures . That's after a closely watched pipeline capacity auction on Monday showed no rise in supplies, according to media reports on Monday. The pipelines run through the Ukraine and Poland. Putin recently said he would help Europe with its pipeline shortages, but some accuse his country of trying to weaponize natural gas supplies to speed up EU approval of the Nord Stream 2 gas pipeline. The U.K. and Europe are heavily reliant on Russia for natural gas supplies, and prices have been soaring this year in part due to higher demand from Asia and elsewhere.

10:14 a.m. Oct. 18, 2021

Today in Bonds

Treasury yield curve flattens after Fed’s Powell underlines inflation risks

Long-dated Treasury prices rally, pushing down yields and contributing to a further flattening of the yield curve, after Federal Reserve Chairman Jerome Powell signals the central bank is prepared to begin tapering its monthly asset purchases.

4:20 p.m. Oct. 22, 2021

Currencies Headlines

The Fed needs to catch up quick before inflation gets away

Inflationary forces are not transitory, and policy makers on Capitol Hill and at the central bank must do everything they can to rein in inflation and boost supply.

11:58 a.m. Oct. 21, 2021
Asian markets mixed after Evergrande sale deal called off

Shares were mixed in Asia after major Chinese property developer Evergrande said a plan to sell its property management arm to a smaller rival had fallen through.

12:11 a.m. Oct. 21, 2021
Market-implied odds of a policy error by Federal Reserve jump to roughly 40%, Credit Suisse says

Anna Moneymaker/Getty ImagesThe market-implied odds of the Federal Reserve committing a policy mistake have jumped to around 40% from just under 25% two weeks ago, according to an analysis of the eurodollar curve done by Credit Suisse.Of all the scenarios being priced in by eurodollar traders, a policy mistake by the U.S. central bank outranks them all, Credit Suisse strategist Jonathan Cohn wrote in a note Wednesday. The policy mistake scenario is defined as one in which the Fed begins lifting interest rates in late 2022, but can only hike a few times before having to stop. Rising inflation worldwide has markets now pricing in interest rate increases by central banks across much of the developed world, a dynamic which Cohn refers to as the “front loading” of hikes. Against this backdrop, the market-implied terminal rate, or level at which hikes would come to an end, has been declining in the U.S. — suggesting traders have reservations about the durability of a hiking cycle with an early liftoff, he says.When taken with other scenarios also factored in by the market, “the analysis supports the notion that uncertainty around the inflation outlook is increasing the risk that the Fed will either fall behind or get ahead of the curve, so to speak,” according to Cohn.Eurodollars are the preferred tool of traders for expressing their views on future interest-rate moves. Under the policy mistake scenario, the target for the fed funds rate never gets above 1% between December 2022 and December 2028, from its current level between zero and 0.25%. A second scenario gaining traction is the prospect of reflation, which has risen from zero to 20% in the past two weeks, as traders factor in a reduced likelihood of the Fed’s base-case scenario coming to fruition. The Fed has penciled in a 2022 start to its rate-hike cycle, with the terminal fed funds rate reaching about 2.5% over the longer term.Until Tuesday, the U.S. Treasury yield curve had also recently been flashing concerns about a Fed policy error, with the spread between 2- and 10-year yields flattening amid concerns about Fed officials needing to tighten policy into a stagnating economy with persistently high inflation. That momentum shifted on Tuesday, with the curve steepening to as high as 126 basis points, the highest level in about a week, and staying around that level on Wednesday.Read:Stronger-than-expected U.S. inflation data has bond traders weighing the risk of a Fed policy errorMeanwhile, Treasury yields were little changed on Wednesday, with the 10-year rate BX:TMUBMUSD10Yhovering around 1.64%. All three major stock indexes were headed higher, with the Dow industrials DJIA and S&P 500 SPX touching record territory. Billionaire hedge-fund manager Paul Tudor Jones is one of the big-name investors who are warning that inflation is “the single biggest threat” to financial markets and possibly “society in general.” In an interview with CNBC, Jones said he feared the Fed was employing what may be the most inappropriate monetary policy of his lifetime.

12:36 p.m. Oct. 20, 2021

Benchmark Rates

/zigman2/quotes/210561242/realtime/sampled
1.1647
+0.1720%
+0.0020
/zigman2/quotes/210561789/realtime/sampled
113.5000
-0.4412%
-0.5030
/zigman2/quotes/210561263/realtime/sampled
1.3758
-0.2610%
-0.0036

Video

Bitcoin Miners Tap Hydropower as Environmental Criticism Grows

A bitcoin mining facility in upstate New York is using electricity from a local hydroelectric plant powered by the Niagara River. The company is part of a group of miners attempting to make the industry more sustainable, both environmentally and financially. Illustration: Alex Kuzoian/WSJ video content

Key Cross Rates

United States DollarUSD United Kingdom PoundGBP European EuroEUR Japanese YenJPY
United States DollarUSD /zigman2/quotes/210561263/realtime/sampled0.7268 /zigman2/quotes/210561242/realtime/sampled0.8586 /zigman2/quotes/210561789/realtime/sampled113.5000
United Kingdom PoundGBP /zigman2/quotes/210561263/realtime/sampled1.3758 /zigman2/quotes/210561278/realtime/sampled1.1810 /zigman2/quotes/210561291/realtime/sampled156.1300
European EuroEUR /zigman2/quotes/210561242/realtime/sampled1.1647 /zigman2/quotes/210561278/realtime/sampled0.8467 /zigman2/quotes/210561215/realtime/sampled132.1878
Japanese YenJPY /zigman2/quotes/210561789/realtime/sampled0.0088 /zigman2/quotes/210561291/realtime/sampled0.0064 /zigman2/quotes/210561215/realtime/sampled0.0076

Currency Converter

 

Key Currencies

Symbol Bid Ask High Low Time(ET)
USDJPY/zigman2/quotes/210561789/realtime/sampled 113.4950 113.5050 114.2050 113.4140 10/22/21
USDCHF/zigman2/quotes/210561981/realtime/sampled 0.9160 0.9164 0.9187 0.9151 10/22/21
GBPUSD/zigman2/quotes/210561263/realtime/sampled 1.3757 1.3759 1.3816 1.3736 10/22/21
EURUSD/zigman2/quotes/210561242/realtime/sampled 1.1645 1.1648 1.1657 1.1621 10/22/21
AUDUSD/zigman2/quotes/210560947/realtime/sampled 0.7468 0.7472 0.7513 0.7453 10/22/21
USDCAD/zigman2/quotes/210561978/realtime/sampled 1.2369 1.2374 1.2391 1.2322 10/22/21
EURCHF/zigman2/quotes/210561153/realtime/sampled 1.0653 1.0656 1.0685 1.0655 10/22/21
EURJPY/zigman2/quotes/210561215/realtime/sampled 132.1649 132.2106 132.8147 131.9087 10/22/21
NZDJPY/zigman2/quotes/210561685/realtime/sampled 81.1603 81.2355 81.9371 80.9939 10/22/21
AUDCHF/zigman2/quotes/210560928/realtime/sampled 0.6835 0.6845 0.6889 0.6836 10/22/21
AUDNZD/zigman2/quotes/210560938/realtime/sampled 1.0430 1.0450 1.0497 1.0416 10/22/21
CADJPY/zigman2/quotes/210560992/realtime/sampled 91.7205 91.7657 92.5000 91.6482 10/22/21
EUR= European Euro CHF= Swiss Franc NZD= New Zealand Dollar
USD= United States Dollar JPY= Japanese Yen GBP= United Kingdom Pound
AUD= Australian Dollar

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