Economy

Stocks notch up new high but it's all about the Fed

Stocks notch up new high but it's all about the Fed”

Stocks soared on the Tokyo Stock Exchange on Tuesday thanks chiefly to the yen's weakening against the dollar and higher US equities, driving up the benchmark Nikkei average to its highest closing level in 25 months.

USA crude futures were up 0.1 percent at $49.98 per barrel, within sight of Thursday's almost four-month high of $50.50.

There was relief the weekend passed with no new provocation by North Korea, though Pyongyang's nuclear ambitions will be center stage when President Donald Trump addresses world leaders at the United Nations on Tuesday. But Britain's FTSE 100 added 0.2 percent to 7,269.87. Samsung Electronics led the gains, along with healthcare and financial stocks. The Tokyo market was closed on Monday for a national holiday.

For markets, the main event will be the Fed's meeting on Tuesday and Wednesday, where it is likely to take another step toward policy normalisation amid what is rapidly becoming a global trend.

THE FED: The consensus in markets is that the Fed will hold off from raising interest rates again but indicate that another increase could come in December.

The Canadian central bank hiked interest rates this month and left the door open for more tightening, while a BoE policymaker hinted last week that it might need to raise rates in the coming months.

In its statement, the Fed, as expected, left rates unchanged and also said it would begin in October to reduce its approximately $4.2 trillion in holdings of U.S. Treasury bonds and mortgage-backed securities.

USA 10-year Treasury yields, which edged up on Tuesday, retreated 1.8 basis points on the day to 2.23 percent.

The seismic shift in rates saw sterling hit its highest since the Brexit vote and notch its best week in nearly nine years against a currency basket.

On forex markets talk of more stringent monetary policy supported the dollar, with the pound rowing back from levels above US$1.36 after the head of the Bank of England indicated possible British rate rises could be slow and gradual.

Traders were also eyeing the possibility of a snap election, reportedly as soon as next month.

The dollar edged down 0.1 percent to 111.47 but remained not far from Monday's eight-week high of 111.66.

The dollar index against a basket of six major currencies was up fractionally to 91.868.

The greenback was little changed at 111.640 yen after touching 111.880 overnight, its highest since late July. The euro was 0.1 percent higher at $1.1961.

ENERGY: Benchmark U.S. crude rose 36 cents to $50.27 a barrel while Brent crude, used to price global oils, advanced 17 cents to $55.67. It rose 2 cents to $49.91 a barrel on the New York Mercantile Exchange on Monday.



Like this

loading...
loading...

Latest


24 September 2017
La prioridad sigue siendo salvar vidas; Peña Nieto
Donde se requerirá llevar a cabo la demolición de los edificios con daños estructurales irreparables para su y la remoción de escombros .

24 September 2017
Kenyan electoral officials set October 26 as date for new polls
It was a watershed moment for judicial independence on a continent where courts more often serve presidents like loyal retainers. A week before the election, a senior election official was found dead outside of the capital Nairobi .

24 September 2017
Zuckerberg wants to sell 35-75 mn Facebook shares
He also asked the company's board to withdraw the proposal to reclassify the stock that he proposed to create a year ago . A class-action trial on the matter was due to start next week in DE but was called off with Zuckerberg's announcement.

24 September 2017
China reiterates calls for S.Korea to remove THAAD
Chinese seismic services detected the tremor at a depth of zero kilometres, at around 8.30 GMT on Saturday morning. Foreign banks "can choose to do business with the United States or with North Korea but not both".

24 September 2017
Kenya's Supreme Court explains why it nullified presidential polls
Nairobi was tense this week ahead of the ruling, with police tear-gassing protesters and the U.S. embassy urging calm. Should the commission fail to organise an acceptable new poll, Kenya will face a constitutional crisis.

24 September 2017
Didn't want to cheat audience with bad story: Rohit Shetty
Though both the films are of different languages, their success can make a sizeable dent in the other's prospects. Rohit Shetty's Golmaal Again has been in the news ever since the movie went on floors early this year.

24 September 2017
Stoke boss Hughes: Chelsea struggling to manage their dark arts
Kurt Zomba is ineligible to play against his parent club while Ryan Shawcross and Geoff Cameron remain on the sidelines. Hughes admits he was a fan of Costa, who is set to leave Chelsea after months of acrimony to rejoin Atletico Madrid.

24 September 2017
Tiemoue Bakayoko is available for Stoke City - Chelsea coach Antonio Conte
Chelsea play at Atletico next Wednesday in Champions League Group C, and all parties will be relieved the matter has been resolved.

24 September 2017
Rouhani defends Iran nuclear deal at United Nations against 'rogue newcomers'
President Donald Trump for his "extremely offensive" rhetoric and "unfounded" allegations about his country. Iran's President Hassan Rouhani said Wednesday the Iranian people are waiting for an apology from U.S.

24 September 2017
Woman's death inside house is suspicious
According to a release by the Suffolk County District Attorney, a woman was found deceased in the home late this afternoon. They also add that the three moved there within the a year ago or so. "We are together, we will be praying, we prayed".