The results of the US FOMC meeting will be announced today. The market expects that the start of tapering will be postponed, and it seems that it is likely to start in November. At this meeting, attention is being paid to whether or not the discussion for November will be presented. In the economic forecast, it is also worth noting whether there is a change in the interest rate outlook of each member. I want to check if the hawkish color becomes stronger.
At the press conference of FRB Chairman Powell, it is expected that there will be a balance between conventional caution and suggestion of direction toward the start of tapering. Currently, the debt problem of Chinese real estate giant Evergrande has destabilized the stock market. There are likely to be references to this point. The point will be whether or not it can give a sense of security to the market.
It seems that news reports related to China Evergrande will continue to attract attention. It was reported that the yuan-denominated corporate bond interest payment would be made on the 23rd, and the Tokyo and Asian markets showed a relief reaction for the time being. However, the amount of interest paid this time is insignificant for the huge total debt. The future response of investors, creditors and the Chinese government is still unclear.
The market seems to be relieved that the yuan-denominated corporate bond interest payment on the 23rd, which was worried, will be paid for the time being. For the time being, price movements are regaining calm. However, the problem has not disappeared, so it is necessary to continue to pay attention to future reports related to the Evergrande Group in China.