Daily Finance & Global News 16th September 2020 | FOMC, JPY, ALIBABA.

1. FOMC Statement Out At 2 PM EST.

The U.S. Federal Reserve's Federal Open Market Committee (FOMC) statement is due out at 2:00 PM ET after the two-day meeting wraps up. It is the primary tool the panel uses to communicate with investors about monetary policy, and it's the last such meeting before the presidential vote in November. Investors will be looking for details on the bank's new inflation framework, after its traditional 2% approach.

2. EIA Crude Oil Inventories Out At 10:30 AM EST.

Inventories are expected to show a build of more than 2 million barrels last week, the same as the previous week's results. The data measures the weekly change in the number of barrels of commercial crude oil held by U.S. firms.

The level of inventories influences the price of petroleum products, which can have an impact on inflation. Brent crude rose 85 cents, or 2.1%, to $41.38 a barrel, while U.S. crude rose 92 cents, or 2.4%, to $39.20. Both contracts rose by more than 2% on Tuesday.

3. Core Retail Sales Out At 12:30 AM EST.

U.S. retail sales are likely to have increased in August, though not as much as over the past three months. The forecast for the month is that sales rose 1% to May's 18.2%, June's 7.5%, and July's 1.2%. U.S. core retail sales are expected to be up by 0.9%, compared to the previous month's 1.9%.

Retail Sales measure the change in the total value of sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

4. Yen Hits Two-week High On Dovish Fed Expectations; Yuan Rallies.
The Japanese yen inched higher on Wednesday as traders bet an ultra-accommodative U.S. Federal Reserve would weigh on the U.S. dollar, while the Chinese yuan extended gains one day after data pointed to better prospects for the world's No. 2 economy.
Traders bought yen on the belief the U.S. central bank may promise further stimulus, which would likely weaken the U.S. dollar and push Treasury yields lower. The Fed is not expected to move on rates but adjustments to bond purchases are possible.

5. Alibaba Group opens China factory as part of a new manufacturing initiative
Alibaba Group Holding Ltd on Wednesday unveiled a pilot factory in the eastern Chinese city of Hangzhou as part of its "smart manufacturing" business initiative.
The announcement marks a continuation of Alibaba's expansion beyond its core business of e-commerce and into sectors on other parts of the online retail supply chain. In a statement, Alibaba said the factory, run by an internal division called Xunxi Digital Technology Company, at present will primarily work with apparel companies.

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