Breaking News: Fed Clear Signal

The Federal Reserve (Fed) has temporarily suspended interest rate hikes, while China's central bank and the European Central Bank are taking different action on rates. Here are the main events in the financial markets on June 15:

The Fed is signaling future rate hikes:

The US Federal Reserve announced the suspension of rate hikes, which was expected. However, this does not mean that the Fed is abandoning the policy of increasing the cost of borrowed funds. The base rate is expected to peak at 5.6% in mid-2023, which means two increases of 25 basis points are possible in the summer.

China's central bank is taking the opposite action:

The Central Bank of China has introduced additional stimulus to support the weakening economy. A 10 basis point cut in the annual lending rate to 2.65% was the first cut since August. The growth of industrial production and retail sales in China is slowing down, which requires additional measures to support the economy.

Futures decline, retail sales expected to be released:

Futures for US stocks fell slightly after the announcement of the Fed's suspension of rate hikes. Investors are paying attention to upcoming economic data such as May retail sales and industrial production indices in New York and Philadelphia. Kroger and Adobe also plan to release their earnings reports.

The ECB continues to raise rates:

The European Central Bank plans to continue raising rates. Oil prices have stabilized after the previous decline and support from China, but remain low due to concerns about supply and demand.