FOMC minutes help drive risk-off sentiment

Posted by Joshua Mahony -
Scope Markets

Markets throughout Asia and Europe have been seeing risk-off flows today, with ongoing concerns around Chinese stability coinciding with a set of FOMC minutes that provided a more hawkish stance than markets had been expecting. In yet another worrying development, the Beijing-based asset manager Zhongzhi has announced that they are in a liquidity crisis, raising concerns over potential contagion throughout the Chinese banking system.

Australian jobs data provided a warning sign that Chinese growth concerns and rising rates are taking a toll, with a 0.2% bump in the unemployment rate and a decline in the employment change figure bringing another bout of downside for AUD. Coming off the back of a surprise rate hold in July, today’s employment data will further pressure the RBA to keep rates on hold when they meet next month.

Yesterday’s FOMC minutes brought both relief and concern for markets, with the improved growth outlook easing fears of a recession at the expense of potentially higher rates. Inflation fears remain prevalent, with the ‘significant’ upside potential specified in the minutes serving to lift predictions for future interest rates. Markets will be watching closely for signs of strength in today’s jobless claims number, with any further economic strength likely to bring additional calls for higher rates and a higher dollar.

On the corporate front, yesterday’s outperformance from Target has helped lift sentiment ahead of today’s crucial Walmart numbers. Markets are expecting to see a significant move higher for both earnings and revenues at the retailer, with Walmart having significantly outperformed EPS estimates in each of their four quarterly reports.

Share this article:

Disclaimer: This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regardsto past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Payment Methods

Scope Markets
Scope Markets
Scope Markets
Scope Markets


Scope Markets
Scope Markets
Scope Markets
Scope Markets

Scope Markets offers institutional and retail trading services to businesses and traders worldwide. Our top management team has more than 20 years of experience in the industry, and we are proud of the solid partnerships we built over the years. Whether it's a business or individual, Scope Markets has a wide range of trading solutions that are compliant, flexible, cost-efficient, innovative, and place the client first.

Contact Us

Registered address:
6160, Park Avenue, Buttonwood Bay, Lower Flat Office Space Front, Belize City, Belize


+44 2030 516959

Risk Warning

Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.

Legal Information

RS Global Ltd is authorized and regulated by the Financial Services Commission of Belize ("FSC") under the Securities Industry Act 2021 with registration number 000274/2.

Restricted Regions

Scope Markets does not offer its services to the residents of certain jurisdictions. Please read carefully our Restricted Countries document.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

© Copyright 2022 Scope Markets. All Rights Reserved.