Economy

Asian markets rise ahead of Trump speech, Fed meeting

Asian markets rise ahead of Trump speech, Fed meeting”

First, this week's U.S. economic data are due in the form of reports on the housing market index, due today; housing starts as well as import and export prices, due Tuesday; existing home sales, due Wednesday; weekly jobless claims, Philadelphia Fed business outlook survey, and leading indicators, due Thursday; and PMI composite flash, and Atlanta Fed business expectations, due Friday.

The Straits Times Index climbed 1 percent or 32 points to end at 3,241. The Dow Jones industrial average 0.3 percent to 22,268.34, its fourth record close in a row.

Wall Street futures pointed to an opening at new record highs on Monday as bullish sentiment continued to hold sway in markets at the beginning of the week that will have the Federal Reserve policy decision as its major focal point.

Under Yellen, the Fed has raised interest rates four times from near zero and stopped accumulating assets.

"In recent months, investors have pared back their expectations for future increases in the United States federal funds rate", says John Higgins at Capital Economics, citing low inflation and the economic impact of recent hurricanes.

Investors will scrutinise the post-meeting statement and new economic forecasts for further clues while Fed Chair Janet Yellen is scheduled to address reporters after the meeting.

Investors will be closely watching the U.S. central bank as its policymakers deal with the fallout from hurricanes Harvey and Irma, which hammered the country and are expected to hit economic growth.

The benchmark 10-year Treasury yield TMUBMUSD10Y, +1.94% ticked higher to 2.228%, versus 2.202%.

And the Fed's preferred inflation measure, the Personal Consumption Expenditures price index, has been steady at 1.4 percent, while the core measure has been below the central bank's two percent target for more than five years.

Advancing issues outnumbered decliners on the NYSE by 1,723 to 996. The 15-year mortgage also was unchanged from the previous week at 3.08%.

Australian stocks recovered from three consecutive losses after finishing higher on Monday, as its financials, consumer discretionary and energy sectors pulled shares higher.

Last week, Canada's competition watchdog said it would not challenge a proposed merger between the two companies.

India's Sensex was moving up 0.7 percent and the Taiwan Weighted gained half a percent while Indonesia's Jakarta Composite index was down 0.1 percent. FTSE 100 is up 27.65 points or 0.40 percent. Orbital itself soared almost 20 percent.

Treasury yields tend to fall on soft inflation data and rise on stronger inflation data because inflation chips away at the fixed returns of government debt and can lead the Fed to raise interest rates.

Shares in Pavillon Holdings, an operator of seafood restaurants chain, rose 2 percent after saying its unit acquired commercial properties in Malaysia for 52 million Malaysian ringgit (S$16.7 million).

One black swan event Schiff sees is the notion of investors abandoning the euphoria over Trump's presidency, which helped fuel the stock market rally this year. DAX of Germany is climbing 41.40 points or 0.33 percent.



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