USD/JPY settles above ¥151 as traders wait for the Fed decision

Caixin manufacturing PMI

In China, Caixin manufacturing PMI (purchasing managers' index) unexpectedly fell in October, matching National Bureau of Statistics (NBS) data released on Tuesday. The index fell to 49.5 in October from 50.6 in September, marking the first contraction since July and missing analysts' forecasts of 50.8.

The nationwide house price index

The nationwide house price index unexpectedly rose in October, up 0.9% compared to the previous month. Economists have anticipated a 0.4% drop. Year-on-year, the index fell -3.3%, against expectations of -4.8%.

US Federal Reserve

No change is expected from the US Federal Reserve tonight. The target range for federal funds rates is expected to remain at 5.25%–5.5%. The Fed hasn't raised its rates since July, but the threat of more increases has seen indices fall over the past two months, while Treasury yields have been hovering around 16-year highs. While much of those fears have centred around how much higher rates could go and how long the Fed will keep them elevated, Powell's post-meeting news conference, as well as the Federal Open Market Committee (FOMC) statement, could move markets.

UK ADP

Before the Fed, the market will be attentive to two statistics. At 12:15 p.m., UK ADP (Automatic Data Processing) employment changed. Expectations are for 150,000 job creations in the private sector after a relatively weak number in September of 89,000. JOLTs ( job openings and labor turnover survey) job openings are forecast to fall to 9.25 million in September from 9.65 million the previous month.

The equity market

Elsewhere on the equity market, GSK raises its full-year profit and sales forecasts for the second time this year, betting on the launch of Arexvy, its respiratory syncytial virus vaccine. An announcement was made alongside GSK Q3 earnings. Sales rose to £8.15 billion, vs. expectations for £7.73 billion. Adjusted operating profit came in at £2.77 billion. The London-listed drugmaker said it now expects a rise of 17% to 20% in annual adjusted earnings per share, excluding the effect of currency swings, up from 14%–17% growth previously forecast.

US AMD

Over in the US, (Automatic Data Processing) AMD reported third-quarter earnings on Tuesday that beat analyst expectations, though the chipmaker issued a weaker-than-expected forecast. Adjusted earnings per share came in at 70 cents, versus expectations of 68 cents per share. Revenue reached $5.8 billion, versus expectations of $5.7 billion. For the fourth quarter, AMD said it expects about $6.1 billion in sales, while analysts were looking for revenue of $6.37 billion

Crude oil

U.S. field production of crude oil rose to a new monthly record in August. According to the ElA, production rose to 13.05 million barrels per day, up 0.7% on the previous month, beating the previous monthly high of November 2019.

Yesterday, the API said that crude oil stocks rose by 1.3 million barrels last week. Gasoline stocks fell by 350,000 barrels, and distillate stocks decreased by 2.3 million barrels.