Market Brief: Saudi Press Conference, FOMC Meeting And Fund-Squeeze Concerns Cap Volatility


A summary of news and snapshot of moves from today’s Asia session.

  • Oil prices reside near yesterday’s low, although volatility remains subdued ahead of a press conference from the Saudi Defence Ministry (expected 14:30 GMT), where reports suggest evidence of Iran’s involvement will be presented.
  • On trade, Trump and Abe are due to meet on 25th September according to Larry Kudlow.
  • Japanese exports contracted for a 9th straight month, declining -8.2% YoY versus -1.6% prior.  
  • The US dollar index is trading just off-of yesterday’s lows, which weakened on news that the Fed had performed their reverse repo program. Trading water ahead of today’s FOMC meeting, it’s a toss up as to whether the meeting or the funding squeeze could be the bigger headline.
  • NZD and AUD are against the weakest currencies, USD is the strongest. Minor ranges overall though, as one tends to expect in Asia (and probably Europe) ahead of an FOMC meeting.
  • Ripple and Ether are the strongest major cryptos, up 12.5% and 8.2% respectively, with Bitcoin lagging at a mere -0.4% for the session.
  • USD/CHF is back below 0.9952 resistance following yesterday’s bearish pinbar. USD/JPY remains above 108, although a smaller, bearish pinbar also shows a hesitancy to push higher ahead of the FOMC meeting. AUD/USD remains above key support at 0.6832, making it a pivotal level for today’s potential fireworks.

  • Asian stock markets are showing mix performance as at today’s Asia’s mid-session where market participants wait for the outcome on Fed FOMC decision later and continue to digest oil related news flow on the recent Saudi oil attacks. Oil prices have retreated after Saudi Arabi said that its oil production would be restored in full by the end of Sep.
  • Today’s outperformers are China A50 and South Korea’s Kospi 200 where both rallied by 0.89% and 0.54% respectively.
  • South Korean technology stocks are leading the gains so far despite the on-going trade tension with Japan over the imports of strategic technology related materials. Samsung Electronics, the highest weightage component stock in the Kopi 200 has staged an up move of 1.49% today.
  • Hong Kong’s Hang Seng Index has managed to halt its previous two days of consecutive decline with the help of AAC Technologies, an Apple supplier that rallied by 10% on higher than expected pre-orders for Apple’s latest iPhones. Secondly, on the backdrop of positive sentiment where brewer AB InBev has revived its Hong Kong’s IPO after it was shelved earlier in July. Right now, it has aimed to raise up to US$ 6.6 billion down from its earlier US$9.9 billion but it still ranks as the world’s second largest IPO for 2019 so far.
  • AB InBev is expected to price the Hong Kong IPO on 23 Sep and start trading on 30 Sep with Singapore’s sovereign wealth find, GIC to invest US$1 billion in the IPO as a cornerstone investor.

Up Next:

  • The Federal reserve meeting is the main planned event later today. We say planned, as there’s also worries about the Fed having to step in with a $53.2 billion reverse repo program to ease a funding squeeze. That is this their first such action in over 10 years and that ‘repo’s’ are hitting the headlines, itself is a cause for concern. And markets now wonder if it will have an impact on today’s rate decision.
  • As for the Fed meeting, Bloomberg still expects around a 96% chance of a Fed cut, whereas the CME FedWatch Tool (which has been distorted by the funding squeeze) is around 56%. It would likely catch traders off guard to not see a cut today, but we must wonder if their reverse repo program could place this on ice. Powell will likely have to at least mention repo’s in his speech, so keep an eye on his remarks 30 mins after the rate decision. It may well be the more exciting part.

Matt Simpson and Kelvin Wong both contributed to this article

Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.